RICHMOND, Va. (WRIC) — The Kentucky-based company known for the annual high-stakes Kentucky Derby is taking over horse racing and slots at Colonial Downs and Rosie’s.

Peninsula Pacific Entertainment LLC. (P2E), the parent company of Colonial Downs Racetrack and Rosie’s Gaming Emporiums, has agreed to an acquisition by Churchill Downs Inc., the company behind the Kentucky Derby, for $2.485 billion.

According to a Churchill Downs press release on Tuesday morning, Churchill Downs will also acquire the rights to P2E’s $565 million ONE Casino + Resort project in Richmond, Virginia. While the proposed casino will be owned by Urban ONE if approved, P2E entered an agreement to operate it on Urban ONE’s behalf.

The prospective project is yet to be approved, but made headway last month when the Richmond City Council voted to revive efforts for the casino’s development.

The Colonial Downs racetrack is located in New Kent County, Virginia, and is home to live horse racing in the Central Virginia region. Rosie’s Gaming has six locations with a unique slot machine system in which the outcome of the wager is based on the results of previous horse races.

The acquisition will be dependent on approval from the typical authorities, such as the approval of the Virginia Racing Commission.

The transaction is expected to be completed by the end of 2022, according to the Churchill Downs press release.