Golden Gaming Inc. Announces Agreements to Acquire Former ETT Slot Route and Pahrump Casinos from Affinity Gaming; Sell its Black Hawk Casino Assets
LAS VEGAS – Sept. 22, 2011 – Golden Gaming, Inc. (GGI) announced today that it has entered into agreements to acquire slot route operations of Affinity Gaming, along with Terrible’s Town Casino and Terrible’s Lakeside Casino & RV Park in Pahrump, Nev. In addition, as part of the transaction with Affinity Gaming, Golden Mardi Gras, Inc., an affiliate of GGI, is selling its three Black Hawk casinos: Golden Mardi Gras Casino, Golden Gates Casino, and Golden Gulch Casino.
When combined with Golden Route Operations (GRO), GGI’s current slot route operation, GRO will operate approximately 8,000 gaming devices in Nevada, across 640 locations. “The size and resources of this combined entity will allow for the integration and advancement of best-in-class technology and innovative player rewards programs which will give GRO’s route partners an unprecedented menu of options to improve their business," said Blake L. Sartini, Chief Executive Officer of GGI. “We are also excited to add Terrible’s Town Casino and Terrible’s Lakeside Casino in Pahrump to the Golden family to complement our existing Pahrump Nugget Hotel & Casino. These transactions exemplify my family’s commitment to the entire Nevada gaming market and belief that the long term growth and vibrant economic trends in the state will resume over time.
We look forward to integrating the outstanding team members and management teams of the ETT slot route and Terrible’s Pahrump casinos into the Golden Gaming culture and family. We also appreciate the dedication and commitment of our Golden team members in Black Hawk over the past several years and we know they will provide great leadership and continuity to Affinity Gaming in the Black Hawk market,” continued Sartini.
“In accordance with our long-term strategic plans for Affinity Gaming, we are selling several non-core assets, including our slot route in two separate transactions, while at the same time acquiring attractive casino assets in Black Hawk, Colo., further diversifying our geographic footprint,” said David D. Ross, Chief Executive Officer of Affinity Gaming. “We look forward to welcoming the Golden Casino Colorado properties to the Affinity Gaming family, and believe that they and their employees will be an excellent fit and help leverage our core management strengths of owning and operating market-leading local casino assets. At the same time, we thank our Pahrump and slot route employees for their excellent service and know they will continue to be successful under the Golden Gaming banner.”
Both transactions are expected to close in 2012 pending approval by regulatory bodies in Colorado and Nevada, and customary third-party approvals. Macquarie Capital acted as financial advisor to GGI with respect to these transactions.
