Nevada gaming regulators signed off on Golden Entertainment’s $190 million acquisition of two Laughlin, Nevada casinos, giving the Las Vegas-based company ownership of three of the Colorado River community’s 11 casinos.
During a 20-minute hearing in front of the Nevada Gaming Commission, Golden Entertainment COO Steve Arcana said the purchase of the Colorado Belle and the Edgewater from Marnell Gaming would allow greater flexibility for the company, which already owns Aquarius in Laughlin. The three casinos are adjacent along the Colorado River.
Laughlin is the fifth largest gaming revenue market in Clark County behind the Las Vegas Strip, balance of Clark County, downtown Las Vegas, and the Boulder Strip. For the first 10 months of 2018, Laughlin gaming revenues are up 3.5 percent. The market has seen just one gaming revenue decrease in the last 16 months, which happened in August.
Golden officials expect the deal to close in January.
The Edgewater and Colorado Belle have a combined 1,400 slot machines, 40 table games and 2,257 hotel rooms. The Aquarius features more than 1,200 slot machines, more 30 table games and almost 2,000 hotel rooms. Golden acquired Aquarius last year as part of the company’s purchase of American Casino & Entertainment, which included the Stratosphere in downtown Las Vegas and the two Arizona Charlies’ properties in Las Vegas.
Under terms of the deal, the company would pay $155 million of the price in cash and the rest in restricted stock priced at $28.54 a share. Marnell Gaming is positioned to receive as much as a 4.2 percent stake in Golden.
Shares of Golden closed at $14.95 Thursday on the Nasdaq, down 95 cents or 5.97 percent.
Marnell Gaming CEO and Chairman Anthony Marnell III will be nominated to the board at the annual meeting of shareholders next year.
Golden executives told the Gaming Control Board earlier this month the deal was cleared by the Justice Department and Federal Trade Commission over competitive concerns. Attorney Mike Alonso, representing Golden, said there are major players in the market, including Caesars Entertainment, Eldorado Resorts, the Golden Nugget.
Sean Hammond, vice president and general manager of the Aquarius. He’ll be assisted by Ryan Walker, who currently leads the Edgewater and Colorado Belle, as vice president and assistant general manager.
“I like to see continuity and I’m glad you kept local talent,” said Gaming Commission Chairman Tony Alamo Jr.
The acquisition of the Colorado Belle and the Edgewater gives Golden control of the 11,000-seat Laughlin Events Center.
Golden has indicated that through its Golden Entertainment Rewards loyalty card it would connect the Laughlin casinos to its Las Vegas and Pahrump casinos, and cross-market to its PT’s-branded taverns in Nevada and the company-owned Rocky Gap Casino in Maryland. Golden also operates slot machine routes in Nevada and Montana.
Chief Financial Officer Charles Protell told the Gaming Commission 85 percent of the company’s revenues would come from Nevada once the transaction closes.
(Disclosure: Howard Stutz oversaw corporate communications for Golden Entertainment from July 2016 to May 2018. He has no financial interest in Golden Entertainment)
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
