Golden Gaming expressed its desire for expansion in 2017. The tavern gaming company certainly backed up its words with action.
Golden Gaming has just acquired American Casino Entertainment Properties. This acquisition brings four Nevada casinos under its umbrella, including the notable Stratosphere on the Las Vegas Strip.
Golden paid $781 million and stock shares for casinos
Golden Gaming acquired the casino company for a cash payment of $781 million. Furthermore, they issued around 4 million shares of Golden stock to Whitehall Street Real Estate Partners, the former owner of American.
Clearly, Stratosphere is the crown jewel among the four properties in the transaction. However, the other casinos involved in the deal are also crucial components. These include:
- Arizona Charlie’s Decatur
- Arizona Charlie’s Boulder
- A casino in Laughlin
Golden has previously acquired casinos; this is not their first. While their main focus is on tavern gambling, their portfolio already includes several Laughlin casinos and a casino property in Maryland.
In a press release about the acquisition, Golden’s CEO Blake Sartini explained the company’s reasons for branching out in this direction.
The American properties are a perfect addition to our current operations. They solidify our presence in the Las Vegas locals market, while also giving us a renowned destination property on the Las Vegas Strip. Our established strategy of emphasizing guest service, superior food and drink options, and effective player marketing will enhance the already robust operations at all of American’s properties.
With profits high, Golden ready to think bigger
Golden Gaming is celebrating a record-breaking first quarter, having earned over $106 million as opposed to their 2016 earnings of $91 million. The company also revealed the opening of its 54th tavern. The brands that fall under Golden’s portfolio include:
- PT’s Pub
- PT’s Gold
- PT’s Ranch
- PT’s Brewing Co.
- Sean Patrick’s
- Sierra Gold
- SG Bar
The widespread presence of these companies with their prevalent brands in Nevada positions them well for a potential move into the casino market.
John DeCree, a gaming analyst, discussed with the Las Vegas Sun the reasons behind these deals. He highlighted the consolidation of the gaming market and how the company’s presence in taverns will impact its success.
“He stated, ‘There’s an ongoing merger happening in all regional gaming. This is simply influenced by the benefits of scalability and the synergies it generates. The more properties you possess and the larger your scale, the more efficient and advantageous it becomes.”
The casino market in Vegas, which prominently caters to locals, is quite prosperous. Golden is not the only local-based company that is expanding to the Strip. Station Casinos, another such company, recently acquired the Palms, located just off the Strip on Flamingo Rd.
The Stratosphere, known for its 1,100-foot tall observation tower, opened its doors in 1996. Over time, its popularity has decreased. However, it remains in a prime location due to its closeness to the rapidly developing north end of the Las Vegas Strip.
