VICI Set To Seal $1.2bn Nevada Casino Deal By April Ending

VICI Properties is expected to complete its acquisition of seven Nevada casino properties from Golden Entertainment by 30 April.

Golden Entertainment shareholders approved the transaction at a meeting on 31 March. With regulatory approvals secured, both parties are moving toward finalising the $1.16bn deal.

The sale forms part of a broader restructuring plan at Golden Entertainment. Chairman and CEO Blake Sartini is also working to take the company private at $30 per share.

Sale-leaseback structure defines transaction

The agreement is structured as a sale-leaseback. Hence, Golden Entertainment will keep operating the casinos while transferring ownership of the real estate to VICI.

VICI will enter into a triple-net master lease with a holding company controlled by Sartini. The lease sets annual rent at $87m over an initial 30-year term, with four additional five-year renewal options.

Rent will increase by 2% annually from the third year, allowing Golden Entertainment to maintain operational control while shifting property ownership. VICI will assume and retire $426m in outstanding debt tied to the assets.

Under the agreement, Golden Entertainment shareholders will receive 0.902 shares of VICI stock for each share held. An additional cash component will be provided by an affiliate of Golden OpCo.

Seven Nevada properties included in deal

This transaction provides liquidity and reduces leverage, positioning Golden Entertainment for its transition to a private company structure. All seven properties involved in the transaction are located in Nevada including the STRAT Hotel, Casino and Tower on the North Las Vegas Strip.

VICI Properties already owns several major casino properties in the region, including Caesars Palace, The Venetian & Palazzo and the MGM Grand.

The STRAT has been part of Golden Entertainment’s portfolio since 2017 and underwent a $140m renovation after its acquisition.

Following the sale, Golden Entertainment will retain ownership of Gold Town Casino in Pahrump and continue operating 72 gaming taverns across Nevada.

VICI properties is in the process of acquiring casino properties in Nevada from Golden Entertainment. However, it will only handle the real estate lease, while the gaming company controls the casino operations. The deal also provides revenue for Golden Entertainment to cover outstanding debts.