Most recently, Century Casinos Inc. announced that it has finalized the acquisition of Rocky Gap Casino Resort, which is located in Maryland, United States. It was reported that the deal for the purchase of the gaming property was worth approximately US$56.1 million and was finalized on July 25, 2023. Via the deal, the company expands its operations in the U.S.
Century Casinos is a leading gambling entertainment company which owns and operates casinos in U.S. and Canada. In the Great White North, the corporation runs Century Casino & Hotels Century Mile Racetrack in Edmonton, Alberta. Also, the firm has a 75% ownership interest in Century Downs Racetrack and Casino in Calgary, Alberta.
Terms of the Agreement
Along with the finalization of the deal, an affiliate of VICI Properties Inc. also acquired a related interest in the land and building related to Rocky Gap Casino Resort, in a deal worth US$203.9 million. Also, Century Casinos adjusted its triple-net master lease agreement with VICI to add the casino. The amendment includes a boost in initial annualized rent of around US$15.5 million.
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos commented that the team was pleased to be expanding its operations into the Old Line State. The two added that the new casino is a great addition to the company’s lineup of properties. The operator is now looking forward to working with the staff and community and continuing the current success of the casino.
The gaming resort is based in Flintstone, Maryland, in the Rocky Gap State Park, which every year sees more than half a million visitors. It stretches over 270 acres and features an 18-hole golf course engineered by Jack Nicklaus, a 5,000-square-foot events centre, meeting spaces, a spa, and numerous outdoor activities. It also offers 630 slots, 16 table games, and plenty of fine restaurants.
After the deal’s completion, CC now owns and operates 19 casinos across the globe, which tout 7,565 gaming machines, 268 table games, and provide over 4,100 full-time jobs. Keeping in mind the acquisition as it occurred on January 1, 2022, the company’s net operating revenue and Adjusted EBITDA for 2022 with the new property would have been US$508.5 million and US$128.7 million, respectively.
VICI Acquires Four Properties in Alberta
Earlier this year, VICI Properties Inc. also expanded its portfolio of gaming properties in Alberta. The company struck an agreement to purchase four facilities from Pure Canadian Gaming Corporation in a deal worth over CA$271.9 million. The four gaming houses were Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary, and Pure Casino Lethbridge.
In addition to purchasing the properties, the company has also entered into a triple-net master lease contract with Pure Canadian Gaming Corp. for the entire Pure Portfolio. The Pure Master Lease has an upfront total annual rent of CA$21.8 million, which represents an implied acquisition capitalization rate of 8% and an initial 25 years term, with four 5-year tenant renewal options.
Source: “Century Casinos, Inc. Completes Acquisition of Rocky Gap Casino Resort Operations; Expands into Maryland” PR Newswire, July 25, 2023
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