[toc]Golden Gaming said it wanted to grow in 2017. The tavern gaming company certainly put its money where its mouth is.
The organization just purchased American Casino Entertainment Properties. The deal gives Golden Gaming four Nevada casinos, most notably the Stratosphere on the Las Vegas Strip.
Golden paid $781 million and stock shares for casinos
Golden Gaming purchased the casino company for $781 million in cash. Additionally, Golden issued American’s previous owner, Whitehall Street Real Estate Partners, roughly 4 million shares of Golden stock.
Stratosphere is obviously the gem of the four properties in the deal. The other casinos in the deal are important pieces too. They are:
- Arizona Charlie’s Decatur
- Arizona Charlie’s Boulder
- A casino in Laughlin
This is not the first casino acquisition for Golden. The company primarily focuses on tavern gambling, but already includes some other Laughlin casinos and a casino property in Maryland.
Blake Sartini, the CEO of Golden, explained why the company is branching out in this direction in a press release about the acquisition:
“The American properties represent an ideal complement to our existing operations as they strengthen our presence in the Las Vegas locals market while providing us with an iconic destination property on the Las Vegas Strip. Our proven strategy of focusing on guest service, quality food and beverage offerings and effective player marketing will complement the strong existing operations currently at all of American’s properties.”
With profits high, Golden ready to think bigger
Golden Gaming is coming off a record first quarter. The company took in over $106 million, compared to $91 million in 2016. The company announced the opening of its 54th tavern. The brands under Golden’s banner include:
- PT’s Pub
- PT’s Gold
- PT’s Ranch
- PT’s Brewing Co.
- Sean Patrick’s
- Sierra Gold
- SG Bar
The companies presence throughout Nevada with these prevalent brands is what positions them to possibly segue into the casino market.
Gaming analyst John DeCree spoke with the Las Vegas Sun about why these deal came about. He honed in on the consolidation of the gaming market as well as why the company’s tavern presence will influence its success.
“We’re seeing a continued consolidation across all regional gaming,” he said. “That’s just driven by the efficiencies of scale and synergies it produces. The more properties you can own and greater scales you have, the better and more efficient it is.”
Vegas has a thriving casino market catered towards locals. Golden is not the only company with a local base expanding to the Strip either. Station Casinos recently purchased the Palms just off the Strip on Flamingo Rd.
Stratosphere opened in 1996. It is best known for its 1,100-foot tall observation tower. Its popularity waned since opening. However, its proximity to the north end of the Strip, which is the area of Las Vegas Strip undergoing the most development, puts it in a desirable location.