Las Vegas-based Golden Entertainment completed its acquisition of two southern Nevada casinos from Marnell Gaming on 14 January.
The acquisition of the Colorado Belle and Edgewater in Laughlin adds the two properties adjacent to Golden’s Aquarius Resort to the company’s portfolio. There are a total of 11 casinos in Laughlin, the fifth largest gaming revenue market in Clark County, which includes the Las Vegas Strip.
The company will pay $155m of the purchase price in cash, while the remaining amount will be be paid in approximately 911,000 shares of Golden Entertainment common stock.
“The acquisition of these properties complements our market-leading Aquarius Casino Resort in Laughlin and grows our portfolio of wholly-owned Southern Nevada casino resorts,” Golden Chairman and CEO Blake Sartini said in a statement.
At a Nevada regulatory hearing in December, Golden executives confirmed that Sean Hammond, VP and general manager of the Aquarius, will oversee the three Laughlin properties, assisted by Ryan Walker, who currently leads the Edgewater and Colorado Belle, as VP and assistant general manager.
In a recent research report on the Laughlin market, Union Gaming analyst John DeCree estimated that revenues from Laughlin will amount to roughly 40 percent of Golden’s cash flow in 2019.
He added that, following the acquisition, Golden Entertainment will control roughly 42 percent of the area’s hotel rooms and 35 percent of the gaming supply.
“Laughlin has become increasingly relevant for public investors, with Golden Entertainment, Eldorado Resorts, and Caesars Entertainment all having operations in the market, DeCree said. “Laughlin is also a core slot players market, making it very relevant for the casino equipment suppliers as well.”
The Edgewater and Colorado Belle have a combined 1,400 slot machines, 40 table games and 2,257 hotel rooms.