Century Casinos has announced the successful completion of its acquisition of Rocky Gap Casino Resort’s operations in Maryland.
The deal, worth $56.1 million, was finalized with Golden Entertainment, the previous owner of the resort. Caesars Entertainment-backed real estate investment trust VICI Properties paid $203.9 million for the land and building.
Century will operate the casino, and in return it will pay VICI a $15 million per year master lease.
We are very excited to be expanding into Maryland. Rocky Gap is a great addition to our portfolio,” said Century Casinos’ Cochief Executive Officers, Erwin Haitzmann and Peter Hoetzinger, in a press release.
“We look forward to working with the staff and community to continue the current success at this property into the future.”
Related: The best online casinos in Maryland, rated and reviewed
The acquisition is a strategic move for Century Casinos, marking its expansion into Maryland. In April, it also purchased Nugget Casino Resort in Sparks, Nevada, for $100 million.
This shows the company’s continued interest in expanding across the United States commercial casino market.
As well as its new Rocky Gap casino, Century already operated six U.S casinos across Missouri, Colorado, West Virginia, and Nevada. It also runs several gambling resorts in Alberta, Canada, and has major investments in casinos in Poland.
The newly purchased Rocky Gap Casino Resort is located within the Rocky Gap State Park in Flintstone, Maryland, a location that attracts more than half a million visitors annually. The casino floor covers more than 25,000 square feet and offers 630 slot machines and 16 table games.
The whole resort spans approximately 270 acres and offers a variety of amenities, including an 18-hole golf course designed by legendary golfer Jack Nicklaus, a 5,000-square-foot events center, multiple meeting spaces, a spa, and various outdoor activities.
The resort also includes a 198-room hotel and five food and beverage venues.
Recent investments of around $10 million have been made in improving the hotel, slot machines, restaurants, and sports lounge. The property also holds potential for further expansion of the casino and hotel.
Financing the Deal
The acquisition was financed through a $30 million loan obtained from the revolving facility of Century Casinos’ existing credit agreement with major investment bank Goldman Sachs, with the rest paid from the company’s existing balance.
At the same time as Century’s deal, an affiliate of VICI Properties acquired the land and building associated with Rocky Gap for approximately $203.9 million. Century Casinos amended its triple-net master lease to reflect a newly agreed $15 million yearly rent payments.
Stifel served as the exclusive financial advisor and Faegre Drinker Biddle & Reath LLP acted as legal advisor to Century Casinos in connection with the acquisition.
Century also operates three other U.S casinos on a lease arrangement with VICI Properties, Century Casino Caruthersville and Century Casino Cape Girardeau in Missouri, and Mountaineer Casino, Racetrack and Resort in West Virginia.
VICI is one of the biggest casino landlords in the U.S. The real estate investment trust, or REIT, is the biggest landlord on the Las Vegas Strip.