Golden Entertainment has entered into definitive agreements to sell its distributed gaming operations in both Nevada and Montana to J&J Ventures Gaming.
The assets will be sold for $322.5 million in aggregate cash consideration, plus an additional $39 million of ‘estimated purchased cash at closing’.
The distributed gaming operator will acquire Golden’s Nevada gaming operations for $213.5 million plus an estimated $34 million of purchased cash.
The second part of the agreement will see J&J Ventures acquire Golden’s distributed gaming operations in the state of Montana for just over $109 million, plus an estimated $5 million of purchased cash.
The transactions are expected to close, subject to regulatory approval and closing conditions before the end of the year.
As part of the agreement, J&J will support the operations of Golden’s branded tavern locations in Nevada for five years.
“Our leading distributed gaming operations in Nevada and Montana were built over the last 20 years through the hard work and dedication of our team members who provide exceptional service and support to our valued route partners,” Golden’s chairman and chief executive Blake Sartini said.
“We believe this transaction will provide further success for our route partners through sharing of best practices and new technology. We anticipate our distributed gaming team members will continue to serve our route partners with the same dedication under J&J Gaming’s ownership.
“Our confidence in J&J Gaming’s future success is highlighted by our new long-term agreement with J&J Gaming to service Golden’s wholly owned tavern portfolio.
“For Golden, these transactions will allow us to focus our management team and capital on our portfolio of wholly owned casinos and taverns in Nevada and create additional value for our shareholders.”
Nevada is considered the capital of gambling in the United States, having offered legalized gambling for the longest of anywhere before the repeal of PASPA. Interestingly, due to the potential for competition with the vast number of commercial casino properties in Las Vegas, Nevada has only legalized online poker. Online sports betting in Nevada is legal however.
Analysts don’t tend to predict the total addressable market for Nevada if online were permitted, as it’s far from likely to happen. Regulatory shift is more likely in 2023 in Texas, where TX sports betting is still going through legislature. California sports betting, following defeat at the November 2022 ballot will not be reappearing in legislature until 2024 at the earliest
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