Century Casinos completes $56.1M acquisition of Maryland's Rocky Gap Casino Resort operations

Casino entertainment company Century Casinos announced Tuesday that it has successfully completed its acquisition of the operations of Rocky Gap Casino Resort in Maryland from Golden Entertainment for a sum of $56.1 million.

Concurrently, an affiliate of VICI Properties acquired the land and building associated with Rocky Gap for approximately $203.9 million, while Century Casinos amended its triple-net master lease agreement with the casino landlord to incorporate the newly acquired property. The amendment resulted in an increase in the initial annualized rent by about $15.5 million.

Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, said: "We are very excited to be expanding into Maryland. Rocky Gap is a great addition to our portfolio. We look forward to working with the staff and community to continue the current success at this property into the future."

Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos

Rocky Gap Casino Resort is situated in Flintstone, Maryland, within the Rocky Gap State Park, which attracts over half a million visitors annually. Spanning approximately 270 acres, the full-service resort boasts an 18-hole golf course designed by Jack Nicklaus, a 5,000-square-foot events center, multiple meeting spaces, a spa, and various outdoor activities.

The casino floor covers over 25,000 square feet and offers 630 slot machines and 16 table games. Additionally, the resort includes 198 hotel rooms and five food and beverage venues.

Recent investments of around $10 million have been made in improving the hotel, slot machines, restaurants, and sports lounge. The property also holds potential for further expansion of the casino and hotel, allowing it to attract more customers from neighboring markets, a press release notes.

Following the acquisition, Century Casinos now boasts a portfolio of 19 casinos in the US, Canada and Poland, with 7,565 gaming machines, 268 table games, and over 4,100 full-time equivalent employees.

On a pro forma basis, accounting for the acquisition as if it occurred on January 1, 2022, the company's net operating revenue and Adjusted EBITDA for the year ending December 31, 2022, with Rocky Gap, would have amounted to $508.5 million and $128.7 million, respectively.

Stifel served as the exclusive financial advisor, and Faegre Drinker Biddle & Reath LLP acted as legal advisor to Century Casinos in connection with the acquisition. The company financed the deal through a $30 million loan obtained from the revolving facility of its existing credit agreement with Goldman Sachs USA, supplemented by cash from the balance sheet.