Golden Entertainment To Sell Nevada Gaming Assets in $250M Deal

Article by : Erik Gibbs Dec 8, 2023

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On Wednesday, the Nevada Gaming Control Board endorsed J&J Ventures Gaming’s acquisition of Golden Entertainment’s distributed gaming operations in that state. The operation was confirmed to peak at $213.5 million.

The final operation also included an additional $34 million in purchased cash. Although transactions have been performed, the proposal is scheduled to be reviewed by the Nevada Gaming Commission in late December.

In September, Golden Entertainment finalized the sale of its distributed gaming operations in Montana. The operator concluded the sale to J&J for approximately $109 million, along with an additional $5 million in purchased cash.

As part of the deal, Golden will engage in a five-year partnership with J&J. By doing so, it will provide support for the gaming operations of Golden’s Nevada-branded taverns.

J&J Gaming, a prominent distributed-gaming operator in Illinois and beyond, is privately held, with Oaktree Capital Management, a Los Angeles-based private equity firm, serving as its majority owner.

Matthew Wilson, Oaktree’s managing director, revealed that their investment in J&J began in 2019. It all led to 13 additional acquisitions and a remarkable three-and-half times revenue growth.

With the recent acquisition, the revenue is expected to increase fivefold. The initial capital investment stood at $155 million, and the equity investment is projected to reach nearly $300 million.

Wilson underscored that the emphasis is not on swift turnarounds, articulating a plan to retain investments for a duration of five to seven years to fully capitalize on their ventures. The strategy involves market consolidation, and the acquisition of Nevada assets positions them as a significant player in this strategic market. This foothold acts as a springboard for the continued expansion and enhancement of their assets.

Jordan Kruse, an Oaktree managing director, outlined the plan to integrate Nevada operations into the broader J&J platform.

The strategy involves investing in high-ROI opportunities. With this goal in mind, Kruse proposes that the companies will be in pursuit of mergers and acquisitions that will expand the operation.

Kruse highlighted that J&J boasts a storied track record of success in route-based businesses, having undergone significant growth under their ownership through a combination of organic expansion and mergers and acquisitions over the past four years.

The platform holds immense potential for further exploration into additional areas within the states where they operate. This is what Kruse is hoping will allow the company to continue developing.