Golden Entertainment Receives Approval To Sell Nevada Gaming Assets

Article by : Erik Gibbs Dec 26, 2023

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On Thursday, Nevada regulators cleared the path for Golden Entertainment to transfer its slot operations in the state to J&J Ventures Gaming. The transaction amounts to a total of $213.5 million, including $34 million in acquired cash.

Similar to the approval granted by the Nevada Gaming Control Board in early December, the Nevada Gaming Commission officially endorsed the transaction.

Originally slated for completion by the end of December, the deal is now anticipated to close in mid-January. Officials cited the necessity for additional time to finalize regulatory processes, such as filings, and address financial matters as the reason for the delay.

Earlier, J&J Ventures Gaming obtained Golden Entertainment’s slot operations in Montana. The transaction reached a total of $109 million, inclusive of $5 million in acquired cash.

Golden Entertainment is set to engage in a five-year partnership with J&J Gaming, wherein J&J will provide support to Golden’s branded gaming campaigns and strategies present in various establishments in Nevada.

J&J Gaming, a privately held enterprise and a prominent player in distributed gaming across Illinois and other regions, is primarily owned by the Los Angeles-based private equity firm Oaktree Capital Management.

Oaktree recently finalized the acquisition of the Casablanca Resort and Virgin River Hotel & Casino located in Mesquite.

In 2019, Oaktree initiated an investment in J&J, subsequently completing 13 additional acquisitions and achieving a remarkable three-and-a-half-fold increase in revenue.

This latest acquisition is poised to elevate that growth fivefold. Starting with an initial capital injection of $155 million, their equity investment is on the verge of reaching and surpassing the $300 million mark.

With this strategic move, J&J asserts its ambition to become the preeminent market leader in the US, boasting a formidable presence with approximately 25,000 Video Gaming Terminals (VGT) available throughout 3,500 locations. These locations are also distributed among five different states.

J&J has unveiled plans to seamlessly integrate the Nevada structure into its developing operations. Regulatory steps are expected to be taken soon.

The acquisition between J&J Ventures Gaming and Golden Entertainment was facilitated by a college connection between Matthew Wilson, Oaktree’s managing director, and Charles Protell, President and CFO of Golden Entertainment.

Expressing admiration for Golden executives and acknowledging the coherence of bringing Golden’s business into Nevada and Montana, the deal aligned with the mutual respect between the parties.

In a separate development, Golden Entertainment’s President sold shares of the company’s stock.

Commissioner Brian Krolicki commended the transaction, recognizing Golden Entertainment’s contributions in Nevada, while Golden plans to concentrate on its tavern business and casino operations in the state.