- Three South American Teenage Minor Leaguers Suspended for Positive Doping
- “Skill gaming” machines that are proliferating across the nation.
- The fact that Encore Boston Harbor is still not offering live poker does not come as a surprise, according to a Boston College professor who follows New England gambling trends.
- “What are you talking about, I’m not negotiating with any club.”
Golden Entertainment Sells Slot Machine Business in Nevada and Montana
Golden Entertainment Inc. announced that it has entered into a final agreement to sell its distributed gaming operations in Nevada and Montana for $322.5 million in total cash and $39 million in purchase cash at closing price. Under the terms of the agreement, J&J Ventures Gaming, LLC (“J&J Gaming”) will acquire Golden’s Distributed Gaming Operations in Nevada for $213.5 million, acquire an estimate of $34 million in purchased cash and Golden’s Distributed Gaming Operations in Montana for $199 million, and acquire an estimate of $5 million in purchased cash subject to conventional working capital adjustments.
Golden will also sign a five-year deal with J&J Gaming to support J&J Gaming’s game operations at Golden’s branded tavern branch in Nevada on financial terms consistent with the company’s past practices.
Total cash considerations plus purchased cash are multiples of $44 million, approximately 9.0 times the adjusted EBITDA for the Golden’s Distributed Gaming segment for the end of December 31, 2022, netting an enterprise cost of $3.8 million allocated to the Company’s Distributed Gaming segment.
Blake Sartini, Golden’s chairman and CEO, said, “Our leading distributed gaming operations in Nevada and Montana have been built through the hard work and dedication of our team members over the past 20 years to deliver exceptional service and support to valuable root partners.” “We believe this deal will provide more success for our root partners by sharing best practices and new technologies. We expect our distributed gaming team members to continue to make the same commitment for our root partners under the ownership of J&J Gaming. Our confidence in J&J Gaming’s future success stands out through our new long-term agreement with J&J Gaming to serve Golden’s portfolio of fully owned taverns. For Golden, these deals will allow us to focus our management and capital on our portfolio of fully owned casinos and taverns in Nevada and create additional value for our shareholders.”
Founded nearly 100 years ago, J&J Gaming is a privately owned business, a leading distributed game operator in Illinois, and operates related businesses in several other states.
The deal is expected to close before the end of the year, subject to customary regulatory approval and closing conditions. Latham & Watkins LLP serves as a legal advisor to Golden regarding the transaction.