Century Casinos to purchase Maryland’s Rocky Gap Casino
Century Casinos and VICI Properties have entered into a definitive agreement to purchase Rocky Gap Casino in Maryland.
US.- Century Casinos has entered into a definitive agreement to acquire the operations of Rocky Gap Casino Resort, in Maryland. It will pay $56m in cash. Meanwhile, VICI Properties will acquire the real estate assets for approximately $204m. The sale is expected to close in mid-2023, subject to regulatory approvals.
Golden Entertainment announced the sale of Rocky Gap Casino during a meeting of the Maryland Lottery and Gaming Control Commission. The venue sits on 270 acres along Lake Habeeb in Western Maryland and includes an 18-hole, Jack Nicklaus-designed golf course as well as a 5,000-square-foot events centre.
The casino itself includes a 25,000-square-foot gaming floor, 630 slot machines, 16 table games, a 198-room hotel and five restaurants. Golden Entertainment has recently invested around $10m for casino improvements.
Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos said: “The addition of Rocky Gap is another important milestone in our pursuit to acquire prime US assets. With this acquisition and our pending acquisition of the Nugget Casino Resort in Nevada, we will oversee a US portfolio that reaches from east to west.
“We are looking forward to working with the Maryland Lottery and Gaming Control Agency to obtain gaming approvals and with the casino leadership and team members to effect a smooth transition and great future for Rocky Gap.
There is potential to expand the casino and hotel and capture more customers from adjacent markets. Additionally, Century will have the opportunity to partner with a sports betting operator in Maryland to bring sports betting to Rocky Gap.
Rocky Gap Casino Resort reported net operating revenue of $78m and Adjusted EBITDA of $27m for the year ended December 31, 2021.
Casinos in Maryland
Maryland’s six casinos registered $181.5m in gaming revenue in July. According to the Maryland Lottery and Gaming Control Commission, gaming revenue surpassed the previous single-month record set in July 2021 by 0.8 per cent.
Contributions to the state totalled $76m, 1.6 per cent lower year-on-year. That’s because, although table game revenues grew, slot machine revenues declined slightly. Maryland taxes slot machines at a higher rate.
Leading the way for casino revenue was MGM National Harbor, which generated $77.2m – up 6.8 per cent year-on-year. Live! Casino & Hotel recorded $61.5m, a decrease of 2.1 per cent. Horseshoe Casino generated $18.3m, a decrease of 4.9 per cent from July 2021.
Of the state’s three smaller casinos, Ocean Downs, Hollywood Casino and Rocky Gap, only Ocean Dows registered a year-on-year increase, with gaming revenue of $10.5m. Hollywood Casino reported 7.5m, down 14 per cent year-on-year, and Rocky Gap Casino $6.2m, down 1,4 per cent.
