Century Gaming is making a major play in the American gambling sector, acquiring the Rocky Gap Casino and Resort in Maryland for a tidy $56 million. The agreement, reached with Lakeshore Development, puts the resort’s worth at a robust 4.9 times its earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2021. Century Gaming intends to fund the purchase using existing cash reserves, highlighting its solid financial standing.
Rocky Gap, a sought-after destination in Flintstone, Maryland, features a 25,000 square foot gaming area with more than 600 slot machines and a designated section for table games. In addition to the casino, the resort provides guests with an upscale experience, including a hotel, an 18-hole Jack Nicklaus-designed golf course, and breathtaking vistas of the nearby lake and mountains.
This purchase represents a substantial expansion for Century Gaming, adding an established property on the Eastern Seaboard to enhance its current holdings. The company’s executives are enthusiastic about Rocky Gap’s potential and are dedicated to collaborating closely with local authorities and the resort staff to guarantee a seamless handover and a promising future for the property.
Notably, while Century Gaming will oversee the casino and its day-to-day running, the physical property will be held by Vici Properties, a real estate investment trust specializing in gaming-related real estate. This strategic alliance enables both entities to capitalize on their respective strengths and optimize the value of the Rocky Gap resort.
Century Gaming is aiming to incorporate its Rocky Mountain Gaming Resort into its current overarching lease contract with Vici Properties. This action would translate to roughly $15.5 million in lease payments within the initial year. This development follows a robust second quarter for Century, with both earnings and income demonstrating positive expansion. The firm generated $111.1 million in net operational income, a surge of 21% contrasted with the corresponding timeframe last year.