Century Casinos has completed the acquisition of the operations of Rocky Gap Casino Resort in Maryland from Golden Entertainment for $56.1 million, with the potential to further expand the hotel-casino to capture more customers from adjacent markets.
The two companies issued separate press releases Tuesday announcing the closing of the deal. Golden said it completed the previously disclosed sale of Rocky Gap for aggregate cash consideration of about $260 million. Century Casinos acquired the operations of Rocky Gap for $56.1 million, while VICI Properties acquired an interest in the land and buildings associated with Rocky Gap for about $203.9 million.
Some $175 million of the sale proceeds will be used to repay term loans outstanding, Golden announced.
Century said it amended its triple-net master-lease agreement with VICI to add the Rocky Gap property. The amendment includes an increase in initial annualized rent of about $15.5 million.
Century financed the acquisition with cash from the balance sheet and $30 million borrowed from the revolving credit agreement with Goldman Sachs.
“Rocky Gap is a great addition to our portfolio for expanding into Maryland,” according to a statement released by Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers for Century Casinos.
Rocky Gap is located in Flintstone in Rocky Gap State Park, which attracts more than a half-million visitors a year. It occupies 270 acres and includes a 196-room hotel, events center and meeting spaces, spa, and 18-hole golf course designed by Jack Nicklaus. The casino measures 25,000 square feet with 630 slot machines and 16 table games. Rocky Gap recently underwent a $10 million renovation to the hotel, slot machines, restaurants, and sports lounge.
Century now has 19 casinos worldwide with more than 7,500 gaming machines and 268 table games.
After shedding its Maryland casino, Golden Entertainment owns eight casinos in southern Nevada and 65 gaming taverns in Nevada. Through its distributed gaming operations in Nevada and Montana, Golden Entertainment operates video gaming devices at nearly 1,000 locations.
