Century Casino and Vici Properties have inked a contract for the $260 million acquisition of Rocky Gap Casino Resort. Century Casinos will pay $56 million for the operations of the Rocky Gap casino, while VICI will invest $203.9 million in the property and facilities.
The Nasdaq Capital Market-listed Century Casinos has announced that it has signed a “final agreement” to acquire the Rocky Gap Casino Resort. If nothing changes, Lakes Maryland Development, which operates the casino, will sell it for approximately $56 million.
The mouth-watering deal
Rocky Gap is located in western Maryland on 270 acres adjacent to Lake Habeeb. It includes a hotel, conference center, five restaurants, the Bonkerz Comedy Club, and indoor and outdoor event areas. In addition, it features a spa, an indoor pool, a fitness facility, a pro shop, complimentary valet parking, and parking places for self-driving guests.
It has Maryland’s only 18-hole Jack Nicklaus Signature Golf Course. It also features a 5,000-square-foot events facility and other outdoor recreation areas.
Century Casinos, which operates several racetracks, award-winning casinos, hotels, horse betting parlors, showrooms, and golf courses, has stated that the investment will come from the company’s cash.
Rocky Gap had a net operating income of $78 million and over 500,000 guests in 2021. The resort contains a 25,000-square-foot gaming floor, a hotel with 198 rooms, and five restaurants. Recently, Golden Entertainment invested approximately $10 million in its casinos.
There are additionally 630 slot machines, 16 table games, and two casino bars at Rocky Casino. The Lakeside Terrace and the 5,000-square-foot Allegheny Event Center at Rocky Gap Casino Resort offer breathtaking views of Evitts Mountain and the 224-acre lake. Consequently, they are ideal for festivals, parties, retreats, and huge meetings.
Concurrently with the transaction’s closing, an affiliate of the real estate investment trust VICI Properties will acquire the real estate assets for approximately $204 million, and Century Casinos will amend its triple-net lease agreement with VICI to include Rocky Gap.
VICI Assets is an absolute investment trust that owns some of the fairest gaming, hospitality, and entertainment properties. VICI Properties controls 43 casinos, including three of the most well-known entertainment venues on the Las Vegas Strip: Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.
Century Casino goes all out
Century Casinos said Thursday that it had agreed with Lakes Maryland Development to purchase the Rocky Gap Casino Resort in Maryland.
For approximately $56 million, the company will assume business control. The transaction is anticipated to close in the middle of 2023 if regulatory and government approvals are granted, and the standard closing conditions are satisfied.
“Adding Rocky Gap is a significant step in the correct approach toward our goal of acquiring strategic properties in the United States. With this transaction and our planned acquisition of the Nugget Casino Resort in Nevada, we will own facilities from east to west across the United States ” Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Casinos, expressed their opinions.
The two also expressed their delight in working with Maryland’s Gaming Control Agency and Lottery to obtain the necessary permissions for gaming. The two stated that they were looking forward to collaborating with the casino’s CEOs and other team members to ensure a “smooth transition and bright future” for Rocky Gap.
John Payne, the president, and chief executive officer of VICI, stated, “We’re thrilled to expand our existing cooperation with Century. They have an excellent track record in integrating and managing comparable high-quality regional resort properties.” Through this transaction, both of our firms may intelligently increase shareholder value.
The Rocky Gap Casino also made $10 million worth of renovations to its slot machines, restaurant, sports lounge, and hotel.
Century Casinos will be able to add more room to the hotel and casino, attracting more local customers.
Additionally, the business believes it may be viable to collaborate with a Maryland sports betting provider “to bring sports betting to Rocky Gap.” This would be consistent with the state’s recent sports betting partnerships, which precede the anticipated launch of the online sports betting industry.
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