Golden Entertainment announced Wednesday that it completed the sale of its distributed gaming operations in Nevada to an affiliate of J&J Ventures Gaming.
J&J Gaming acquired Golden Entertainment’s Nevada distributed gaming operations for cash consideration of approximately $213.5 million, plus purchased cash (comprising cash and cash equivalents related to operations at the time of closing) of about $37.5 million. Golden Entertainment completed the sale of its distributed gaming operations in Montana to an affiliate of J&J Gaming in September for $109 million, plus $5 million in purchased cash.
J&J Gaming considers itself the national leader in the installation and operation of regulated gaming devices in restaurants, bars, taverns, gaming parlors, convenience stores, truck stops, and other authorized venues. The Nevada operations provide J&J Gaming access to a market that consistently leads the nation in population expansion and the largest locals’ gaming market. The Montana market is unique, in that it has no commercial-casino operations and allows locations up to 20 gaming devices.
Together, these platforms afford 11,600 gaming terminals in more than 1,000 locations for J&J Gaming and its affiliates. On a combined basis, the company and its subsidiaries and affiliates provide gaming as a service to 3,600 locations in various regulated jurisdictions.
“We and our affiliate, JJVG Nevada, are committed to preserving Golden Entertainment’s legacy in distributed gaming and the reputation it has established. By combining our strengths and leveraging Golden’s expertise, we intend to create greater value for our distributed gaming customers,” said J&J Gaming’s CEO, Bob Willenborg in a statement.
J&J Gaming is a privately held business and distributed gaming operator in Illinois and other states. Los Angeles-based private-equity firm Oaktree Capital Management is its majority owner. Oaktree recently closed on the purchase of the Casablanca Resort and Virgin River Hotel & Casino in Mesquite.
With the sale, Golden Entertainment will focus on its other ventures. It owns and operates a diversified entertainment portfolio of gaming and hospitality assets that focuses on casino and branded tavern operations.
Golden Entertainment operates nearly 5,600 slots, over 100 table games, and over 6,000 hotel rooms. It owns eight casinos and 69 gaming taverns in Nevada.
Golden will enter a five-year agreement with J&J Gaming, under which J&J will support the gaming operations of Golden’s branded tavern locations in Nevada.
Taft Stettinius & Hollister LLP and Kirkland & Ellis LLP served as legal advisors and Macquarie Capital served as financial advisor to J&J Ventures Gaming, LLC.
