Posted: 8/18/2005 11:14:00 AM ET

Penn National Gaming Inc. moved a step closer toward its acquisition of Argosy Gaming Co. on Tuesday when Louisiana gave regulatory clearance for the transaction.

Louisiana approved the move to buy the Alton, Illinois-based company pending a couple of requirements. Because of monopoly concerns raised by the Federal Trade Commission, Argosy’s Baton Rouge casino will be sold to Kentucky-based Columbia Sussex Corp. for $150-million so as not to conflict with Penn National Gaming’s Casino Rouge in the same market. Penn National Gaming also has agreed not to recruit workers from the current Argosy casino in Baton Rouge to work at its Casino Rouge.

Illinois is the final state remaining among seven states required to approve the acquisition. The state’s gaming board will meet on August 25 to review the deal. Penn National hopes to close on the deal by September 1.

Penn National owns its flagship track in Grantville, Pennsylvania, as well as Charles Town Races in West Virginia. The Argosy acquisition would make Penn National the third largest operator of gaming properties in the United States.