In June this year, Nevada-based tavern and gambling operator Golden Entertainment officially announced that it is to acquire American Casino & Entertainment Properties LLC (ACEP) as part of its strategy for further growth expansion. Shortly after the announcement came, the company announced that it has entered into definitive agreement to acquire ACEP for $850 million. This Wednesday, Golden Entertainment made one more step towards completing the acquisition deal after the state Gaming Control Board gave the companies the go-ahead to continue with their merging. The entire deal is expected to be completed on 20th October, as just the day before Golden Entertainment is to ask Nevada Gaming Commission for final approval.
Upon completion of the purchase deal, Golden is to pay a total of $850 million to acquire ACEP, the latter known to operate 3 properties in Las Vegas including the Stratosphere Casino, Hotel & Tower, Arizona Charlie’s Decatur and Arizona Charlie’s Boulder, as well as its fourth property, the Aquarius Casino Resort in Laughlin. At a meeting in Carson City, which took place on 4th October, the state Gaming Control Board approved and even recommended the approval of Golden to assume control over ACEP’s properties.
Earlier this year, Golden’s Chairman and CEO Blake Sartini commented that the acquisition of ACEP properties perfectly fits Golden’s strategy to expand on the market through the operation of multiple brands. Once the deal is completed, Golden is to own over 114 table games and more than 5,100 hotel rooms, spreading over 8 casino properties and 1,000 other gaming venues across 3 states, and more precisely Nevada, Maryland, and Montana.
Prior to approving the acquisition deal, the state Gaming Control Board voiced its concerns regarding the company’s considerable rise. It was estimated that upon the closure of the deal, Golden is to rise three times. The meeting between Mr. Sartini and the board lasted almost 2 hours. In response to the board’s questions, Mr. Sartini noted that the company has the capacity to successfully manage all of its properties. Board member Shawn Reid commented that he is confident to recommend approval, because over the years of Golden’s operations in Nevada, the company has never failed to meet any of the state’s requirements. The final step in front of Golden is to receive the final approving nod from Nevada Gaming Commission, expected to happen on 19th October.
Consolidation as a Trend
Consolidation has become a leading tendency within the global gambling scene. That is not a surprise, taking into account the regulatory pressure, high taxes and fierce competition. To address all these challenges, many companies decided to join forces through merger, or acquisition deals. By combining business activities, performance will increase, while costs will decrease. Apart from that, the companies enhance their market penetration and diversify their product. In the wake of this tendency, many big gambling brands have already combined their operations.
