Vici Buys Four Alberta Casinos
Author:
Scott Lawson
The real estate investment firm Vici Properties is making major inroads in Canada by acquiring all of the Alberta assets owned by Colorado-based Century Casinos for CAN$221.7 million ($164.3 million) cash in a sale-leaseback transaction. The former Caesars subsidiary will purchase Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino and Century Downs.
Vici Properties is buying all of the Alberta assets owned by Colorado-based Century Casinos in Canada for CAN$221.7 million ($164.3 million) cash in a sale-leaseback transaction. ?12019/Pixabay
Casinos Will be Added to Existing Master Lease Deal between Vici and Century
Big moves: the real estate investment entity Vici Properties has revealed that it plans to take over all four of the Alberta assets currently owned by the Colorado-based Century Casinos for an amount worth CAN$221.7 million ($164.3 million) cash in a sale-leaseback transaction deal.
Vici Properties, which is in fact a former Caesars subsidiary, will purchase the operator’s complete Canadian portfolio, which includes the casino properties Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino and Century Downs.
The details of the agreement reveal that the casinos will be added on to the master lease agreement which currently exists between Vici and Century. At the point at which the deal closes, the operator’s annual rent will increase by $17.3 million, or in other words 7.8% of the cost of the acquisition.
Century Will Take Advantage of Sale to Finance Renovations at Nugget Casino Resort in Nevada
Speaking on the news of Vici Properties swooping in to acquire all of Century Casinos’ Calgary casino properties, Century co-chief executives Erwin Haitzmann and Peter Hoetzinger justified the move by emphasizing the financial flexibility it will afford the company, before revealing that Century will make use of the sale to finance renovations at its Nugget Casino Resort in Nevada and other miscellaneous corporate needs:
“This transaction unlocks the real estate value of our Canadian properties while continuing our Canadian operations and provides us with greater financial flexibility as we continue to grow. We continue to evaluate the optimal use of our capital.”– Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executives, Century Casinos,Press Release
The duo also claimed that they were looking to perhaps use some of the proceeds to pay down existing debts, but also to return value to shareholders through stock repurchases or a special dividend. Century saw a record-high operating revenue of US$430.5 million in 2022, coming in at 10.8% higher than its full year 2021 results, though the company’s profit still managed to sink 37.6% in the same period, down to $13.6 million.
For its part, Vici Properties president and chief operating officer of properties John Payne positioned the deal as proof of the company’s impulse to continue growing in the Canadian market, saying it was also pleased to continue to work with Century Casinos:
“We are thrilled to announce our third international investment with the acquisition of Century’s four Canadian casino assets. It demonstrates our ongoing desire to expand internationally and confidence in the Canadian gaming market. We are also pleased to continue growing our partnership with Century by supporting their asset monetization strategy, unlocking value that fuels their strategic growth initiatives.”– John Payne, President and Chief Operating Officer of Properties, Vici Properties,Press Release
BetMGM Joined Up with NFL Canada in August 2022
Continuing our focus on Canada, back in August 2022, renowned casino and sports betting operator BetMGM announced that it had struck a deal with the National Football League (NFL) in the country, becoming its official sportsbook partner in the process.
The announcement arrived right before the kickoff of Canada’s first NFL season since the Canadian province of Ontario finally launched its regulated betting market in 2022. BetMGM was one of the first operators up and running in the province following the launch, after it was granted an operator’s license by the province’s main gambling regulator – the Alcohol and Gaming Commission of Ontario (AGCO).
Marking the deal was BetMGM chief executive Adam Greenblatt, who held high hopes that it would provide the operator with exciting new opportunities in the region, while already seeing encouraging enthusiasm from Ontario sports bettors:
“Expanding our partnership with the NFL into Canada sets the stage for amazing opportunities as we begin the upcoming football season. We’re already seeing great interest from our Ontario customers and this collaboration truly elevates the BetMGM experience.”– Adam Greenblatt, Chief Executive, BetMGM, Press Release
Alcohol and Gaming Commission of Ontario (AGCO) Fined Operators in May 2023
Speaking of the Alcohol and Gaming Commission of Ontario (AGCO), the regulatory body issued upwards of CA$70,000 (￡41,709/€47,286/US$51,815) in fines recently in May 2023 against three operators for running unlicensed slot games.
Operators Bunchberry Limited, Mobile Incorporated Limited and LeoVegas Gaming were all found to be violating Standards 4.08 and 4.09, which require all licensees to receive the necessary regulatory approval for all slot games from an independent testing laboratory.
The registrar and chief executive of the Alcohol and Gaming Commission of Ontario (AGCO), Tom Mungham, reminded operators of the high standards the province wants to hold gambling brands to, before driving home the importance of only betting through licensed operators:
“The AGCO holds all registered operators to high standards of responsible gambling, player protection and game integrity, and monitors their activities in the interest of Ontarians. A critical feature of our regulatory framework requires operators to only offer games that are from registered gaming suppliers and have been certified by an AGCO-registered independent testing laboratory to meet the highest standards of game integrity. Ontarians who choose to play on registered sites need the assurance that the games being provided meet these requirements.”
