Century Casinos is undertaking a significant expansion in the American gaming sector by purchasing the operations of Rocky Gap Casino Resort for $56 million. This transaction, funded entirely through Century Casinos’ internal resources, assesses the resort at 4.9 times its 2021 EBITDA, demonstrating its robust profitability.
Situated in picturesque Flinstone, Maryland, Rocky Gap yielded $78 million in income and $27 million in modified EBITDA in the fiscal year concluding December 31, 2021. The property features a 25,000 square foot casino space with over 600 slot machines, a designated table games section, a lodging facility with almost 200 guest rooms, and an 18-hole Jack Nicklaus designed golf course.
This purchase is a crucial element of Century Casinos’ plan to broaden its footprint in the United States with premium properties. The organization’s co-CEOs, Erwin Heitzmann and Peter Hoetzinger, conveyed enthusiasm regarding the agreement, stating that it will provide them with a solid presence on both the eastern and western seaboards of the US, particularly following their upcoming acquisition of the Nugget Casino Resort in Nevada.
Century Casinos will collaborate closely with the Maryland Lottery and Gaming Control Agency to obtain the required gaming authorizations and guarantee a smooth handover for Rocky Gap. Concurrently, Vici Properties will procure the real estate holdings of Rocky Gap for roughly $204 million.
Century Casinos is incorporating its Rocky Gap Casino in Maryland into a preexisting lease arrangement with Vici Properties. The agreement is set up as a triple-net lease, meaning Century Casinos assumes responsibility for all expenses associated with the property. The starting yearly rent payment will be approximately $15.5 million.
This announcement follows a robust financial performance by Century Casinos in the second quarter, during which the company experienced growth in both earnings and income. In total, net operating revenue for the quarter reached $111.1 million, representing a 21% surge in comparison to the corresponding period in the previous year.
