Affinity Gaming to merge with shell company

Affinity Gaming is to merge with a SPAC company.
Affinity Gaming is to merge with a SPAC company.

According to a report filed to the US Securities and Exchange Commission (SEC), more acquisitions are to follow.

US.- Z Capital’s Affinity Gaming, the parent company of Silver Sevens casinos, is to merge with Gaming & Hospitality Acquisition, a Special Purpose Acquisition Company (SPAC).

The company will be led by Z Capital’s president and CEO James Zenni and Affinity Gaming CEO Mary Beth Higgins.

According to the report filed to the US Securities and Exchange Commission (SEC), the Gaming & Hospitality Acquisition has made plans for a public offering to raise between $150m to $172.5m.

The company added: “We seek to acquire one or more businesses with assets that are fundamentally sound, yet are underperforming their potential.

“We will look for opportunities where we can leverage our significant experience and expertise to help one or more businesses achieve long-term strategic and operational excellence.”

The document states that the SPAC has not yet identified other companies to merge with beyond Affinity, but that other potential targets would be companies from the gaming and hospitality industry.

“In particular, we believe there is a robust addressable market in regional and distributed gaming,” the filing reads. “Regional gaming is a logical market, given the potential synergies with the Affinity Gaming platform.”

SPACs such as Gaming & Hospitality Acquisition are a form of blank-check company with no commercial operations. They are formed to raise money through an initial public offering and merge with existing operating companies.

Affinity has properties in Las Vegas as well as other gaming properties in Nevada, Iowa and Missouri. At present, Nevada retains strict capacity restrictions in place for casinos due to the Covid-19 pandemic.

In other merger news, internet gaming software supplier GAN Limited recently acquired the Vincent Group, parent company of Coolbet.

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