Golden Entertainment, operator of The STRAT Hotel, Casino, and Tower on the north end of the Las Vegas Strip, has made its transition to a privately-held company.
In the move, Vici Properties acquired the real estate of seven of Golden’s casino resorts for $1.16 billion. Golden shareholders received .902 shares of Vici stock and $2.75 in cash for every share they owned of Golden Entertainment. The properties included The STRAT, Arizona Charlie’s Decatur, Arizona Charlie’s Boulder, the Aquarius and Edgewater, both in Laughlin, and the Pahrump Nugget Hotel and Casino.
Golden will continue to operate the properties under a 30-year triple-net lease agreement with Vici (meaning Golden continues to pay property taxes, insurance, and maintenance expenses) starting at $87 million per year. The rent will remain stable for the second year and then increase by two percent annually after that.
“Returning to private family ownership means we can focus on running our operations without the distractions of being publicly traded, while continuing to deliver an exceptional guest experience across all of our casino properties and taverns,” Golden Entertainment Chairman and CEO Blake L. Sartini said in a statement.
This type of deal, privatization aside, has become commonplace in the US gaming industry. It allows real estate companies to add to their portfolios and ensure a predictable income stream, while the gaming companies can focus on their core strength of operating casino resorts.
Golden Entertainment also operates over 70 PT’s Taverns, the largest tavern network in Nevada.
“We intentionally reset in Southern Nevada,” Sartini said at a Nevada Gaming Control Board meeting in April. “I’m a big proponent of being able to drive and visit, touch our properties on a daily basis.”
Because Golden will continue to operate the properties, visitors should not see any changes to the day-to-day.
