Penn National Gaming has squashed its $6.1 billion sale to two private equity firms, the New York Times reports.

The casino operator would have received $67 a share in cash from Fortress Investment Group and Centerbridge Partners. Now, Penn National will receive $1.475 billion, including both a $225 million breakup fee and a $1.25 billion equity investment by the two firms, due in 2015 and payable with cash or stock.

Penn National said that renegotiating the deal at a lower deal price was ''not a viable option.''

The buyout was one of the last from the deal-making boom that ended last summer. But its fate became increasingly tenuous amid the tighter credit markets, which have helped derail several other proposed private equity deals.

''This was not the result we expected when we entered into our agreement one year ago,'' Peter M. Carlino, Penn National's ceo said in a conference call.