Century Casinos will enter the gaming market in Reno, Nevada, after inking a deal to acquire Nugget Casino Resort.
Century Casinos Is Moving in on Reno, Nevada
Casino entertainment company Century Casinos announced on Wednesday that it entered into a definitive agreement to acquire 100% of Nugget Sparks LLC, the company that operates the Nugget Casino Resort from Marnell Gaming. Moreover, the company agreed to acquire 50% of Smooth Bourbon LLC, a company in charge of the real estate of the resort.
The price tag for the deal is set at $195 million. Breakdown of the cost shows Century Casinos agreed to pay $95 million for Smooth Bourbon. This represents a capitalization rate of 7.9%. On the other hand, the company will pay $100 million to acquire Nugget Sparks LLC.
In the next five years, Century Casinos will have the option to purchase the remaining 50% of Smooth Bourbon for $105 million-plus 2% per annum. Since Smooth Bourbon owns the land under the casino resort, Century will enter into a lease agreement with the company, paying an annual rent of $15 million. It is important to mention that Smooth Bourbon’s complete acquisition is subject to relevant approvals from the Nevada Gaming Commission.
The Nugget Casino Resort Is a Lucrative Investment
Located in Sparks, Nevada, the Nugget Casino Resort represents a lucrative investment, considering that it is less than three miles from Reno-Tahoe International Airport. The resort has a huge 50,200 square feet casino space featuring 859 slot machines and 29 table games.
The resort has two hotel towers with a total of 1,382 hotel rooms. Visitors can enjoy seven different dining outlets, as well as 110,000 square feet of convention space and an outdoor amphitheater with 8,555 seats. Bars, lounges, as well as massive parking offering 1,200 parking spaces are also a part of the resort.
“We expect the Nugget to seamlessly integrate and provide added synergies for Century Casinos’ US portfolio,” said Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos
Century Casinos’ co-chief executive officers, Erwin Haitzmann and Peter Hoetzinger said that the company has been planning to enter the market in Reno for quite some time. They pointed out that the Nugget Resort Casino is the perfect fit for Century Casinos. Outlining that there are areas that may improve to help the Nugget grow, Hoetzinger and Haitzmann pointed out that the transaction brings a lot of benefits.