VICI Properties acquires the Rocky Gap Casino Resort in Maryland with Century Casinos for a total of $260 million. [Image: Shutterstock.com]
Real estate, operations separated
VICI Properties Inc. buys the Rocky Gap Casino Resort in Flintstone, Maryland from Golden Entertainment in a cash deal worth $260 million. The real estate investment trust (REIT) announced its plan on Thursday. It will lease the casino resort operations to Century Casinos.
Century Casinos Pays $15.5 Million Annual Rent to VICI
Specifically, VICI will pay $203.9 million for the property’s land and buildings, while Century Casinos will pay $56.1 million for the property’s operations. Century Casinos will pay a $15.5 million annual rent to VICI; the two companies already have a master lease that covers other properties.
The initial lease term is 15 years, with four additional options for five-year extensions. The current timeline is for the deal to be fully completed by mid-2023 once the relevant regulatory approval has been obtained and the respective closing conditions have been met.
Century Casinos Expands Its Reach
Speaking about the acquisition, VICI Properties’ chief operating officer and president, John Payne, said, “We are very pleased to expand our existing partnership with Century, given their strong track record of integrating and operating similar high-quality regional resort assets.”
He believes the deal will enable all parties to create significant value for their shareholders.
Rocky Gap Casino Resort’s net revenue last year was $78 million. The property attracted more than half a million visitors.
Century Casinos will soon be operating more than ten casinos in North America. Century Casinos co-chief executive Peter Hoetzinger and Erwin Haitzmann said that as a result of the Rocky Gap Casino deal and the pending acquisition of Canada’s Nugget Casino Resort, it will “oversee a U.S. portfolio moving from east to west.” reaches”.
The company will work closely with the Maryland Lottery and Gaming Control Agency to obtain the relevant regulatory approvals.
An extensive portfolio
The Rocky Gap Casino Resort currently offers 630 slot machines, two casino bars and 16 table games. In addition to the 25,000-square-foot casino, there is also a hotel, comedy club, conference center, and a host of other amenities. Golden Entertainment had only recently invested about $10 million to make improvements to the property.
the company has over 42 gaming facilities on its roster
VICI Properties has built up an impressive portfolio of gambling-related properties in recent years. Some of the most iconic properties on the books include the Venetian Resort Las Vegas, the MGM Grand, and Caesars Palace. All told, the company has over 42 gaming facilities on its roster. Some of the major casino companies it has relationships with include Caesars Entertainment, Hard Rock International, Penn National Gaming, and MGM Resorts International.
This post VICI Properties to Buy Rocky Gap Casino in $260 Million Deal
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