Century Casinos completes purchase of Rocky Gap Casino Resort in Maryland
Golden Entertainment, a fast-growing gaming company that owns & operates resort-casinos and taverns across Southern Nevada, Montana and Maryland, has announced that it has finalized the sale of Maryland-based Rocky Gap Casino Resort for a total cash consideration of approximately $260 million.
The Las Vegas-headquartered gaming company explained that Century Casinos Incorporated of Colorado acquired the Rocky Gap business for approximately $56.1 million (subject to customary working capital adjustments), while New York-headquartered VICI Properties bought a stake in the buildings and land linked to Rocky Gap for approx. $203.9 million.
The company also revealed that $175 million of the revenue from the sale of the aforementioned gambling-friendly property will be used to repay outstanding term loans.
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers (Co-CEOs) of Century Casinos, said the purchase of the Rocky Gap is a great addition to the company’s portfolio for its further expansion in the Maryland’s gaming market.
In a recently released statement, the Co-CEOs explained, “We have amended our triple-net master-lease agreement with VICI to add the Rocky Gap property. The amendment includes an increase in initial annualized rent of about $15.5 million. Rocky Gap is a great addition to our portfolio for expanding into Maryland.”
The purchase of the property will not only enable Century Casinos to expand in Maryland but also help it in attracting more customers from neighbouring markets.
During the process of transaction, global financial services provider Macquarie Capital served as exclusive financial advisor, while Latham & Watkins and Duane Morris took the role of Golden Entertainment Inc.’s legal advisors.
Rocky Gap seems to be a good investment for Golden Entertainment because it is located at Flintstone’s Rocky Gap State Park, which attracts more than half a million visitors per annum. In area, it spans 270 acres, including a 196-room hotel, large meeting spaces, a golf course and a state-of-the-art spa. The casino at the resort spans 25,000 square feet, and it offers nearly one and half dozen gaming tables and more than 600 slot machines. Recently, Rocky Gap was re-modelled at an investment of $10 million. The investment brought several tweaks at the resort’s hotel, restaurants and sports lounge.
As far as Century Casinos Inc. is concerned, it has a total of 19 gambling-friendly properties across the world equipped with more than 7,500 gaming machines and 268 table games.