Sparks: Century Casinos completes acquisition of Nugget Casino Resort's operations for $100M
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Colorado-based Century Casinos announced Tuesday it has completed the acquisition of the operations of the Nugget Casino Resort in Reno-Sparks, Nevada, from Marnell Gaming, for approximately $100 million.
Prior to the acquisition, back in April 2022, the company purchased from Marnell 50% of the membership interest in Smooth Bourbon, the company that owns the land and building on which the Nugget casino is located.
The Nugget and Smooth Bourbon have a lease agreement for the land and building for an annual rent of $15 million.
The operation was financed with funds previously borrowed from the Century's existing credit arrangement with Goldman Sachs USA, which was deposited into an escrow account until the acquisition closed.
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, said: “We are very excited to be expanding into Nevada. The Nugget is a great addition to our portfolio.”
The executives also stated they have plans to update the facade, signages, slot floor and food and beverage venues of the property. “We look forward to working with the staff and community to continue the current success at this property into the future,” Haitzmann and Hoetzinger concluded.
Nugget Casino Resort is located in Sparks, Nevada, located on Interstate 80, with easy access from Reno-Tahoe International Airport. The full-service resort includes a large gaming floor, two hotel towers, 114,500 square feet of convention space, an 8,555-seat outdoor amphitheater, a variety of casual and fine dining options in addition to several on-site bars and lounges, and a five-story 1,200 space parking garage.
The property consists of 71,200 square feet of casino space, 892 slot machines, 29 table games, 1,382 hotel rooms and five dining venues. With this transaction, the company’s portfolio increases to 18 casinos worldwide that include 6,955 gaming machines, 249 table games and over 3,100 full-time equivalent employees.
In addition to acquiring the Nugget,Century announced in August that it isacquiring the operations of the Rocky Gap Casino Resorts in Maryland for $56.1 million from Golden Entertainment in a $260 million transaction that involves Vici Propertiesas the real estate holder.
Century has a $350 million financial commitment from Goldman Sachs and a $30 million line of credit to finance the deals. Once the deals close, Century expects 94% of its cash flow will be generated in North American properties.
Back in March, the companyposted revenue up by 11% to $430.5 million and Adjusted EBITDA of $103.3 million, an increase of 6%, in full year 2022. However, the firm’s stock fell 16% in New York after the regional casino operator reported a significant drop in earnings for the last year amid higher costs.
