Golden Entertainment Completes $213.5 Million Sale of Nevada Operations

Golden Entertainment, a major player in the gambling industry, has recently finalized a substantial deal that sent shockwaves through the gaming world. The company has successfully completed the sale of its gaming operations in Nevada for a remarkable $213.5 million in cash. This transaction, which took place on January 11th, 2024, marks a significant milestone in the company's history.

The buyer, J&J Ventures Gaming, is set to pay the hefty cash consideration to acquire Golden Entertainment's operations in Nevada. In addition to the purchase price, approximately $37.5 million in cash will also change hands as part of this deal. The sale, initially announced in March 2023, was part of a broader agreement that also included gaming operations in Montana. Golden Entertainment successfully closed the $114.0 million sale of its Montana gaming operations, including video lottery terminals, in September.

J&J Ventures Gaming, a privately held distributed gaming operator with a presence in several states, has become a significant player in this transaction. Moreover, this agreement encompasses a broader operational arrangement between J&J Ventures and Golden Entertainment. Over the next five years, J&J Ventures will provide support for the gaming operations of Golden Entertainment-branded tavern locations in Nevada.

This sale is the latest in a series of mergers and acquisitions undertaken by Golden Entertainment in recent years. The company's strategic moves include selling the land and buildings of the Rocky Gap Casino Resort in Maryland to Vici Properties for $203.9 million in August 2022, with the deal concluding in July 2023. Furthermore, the operating assets of the casino were sold to Century Casinos for $56.1 million, making the total deal worth $260 million. As a result of the Rocky Gap sale, Golden Entertainment reported a significant increase in net profit in the third quarter of 2023, with net profit soaring to $241.2 million compared to $14.0 million the previous year.

Despite the surge in profit, the sale had a notable impact on revenue, which saw a 7.6% decline to $257.7 million in the third quarter. Additionally, distributed gaming business revenue dropped by 10.2% following the sale of Montana assets. Adjusted EBITDA for the same quarter also experienced a 12.6% decrease, reaching $53.2 million.

In the year-to-date, revenue for the first nine months of the year, ending in September, was 2.3% lower at $822.5 million. Net profit, on the other hand, witnessed an astonishing 271.8% increase to $265.1 million, while adjusted EBITDA fell by 14.6% to $173.8 million. This series of strategic moves and financial shifts solidifies Golden Entertainment's position as a dynamic and influential player in the gaming industry.