COLORADO SPRINGS, Colo., April 4, 2023 — Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) (“Century Casinos” or the “Company”), announced that it completed the acquisition of the operations of the Nugget Casino Resort (“Nugget”) from Marnell Gaming, LLC (“Marnell”) for approximately $100 million (the “Acquisition”) on April 3, 2023.
Prior to the Acquisition, in April 2022, the Company purchased from Marnell 50% of the membership interests in Smooth Bourbon LLC (“Smooth Bourbon”). Smooth Bourbon owns the land and building on which the Nugget is located. The Nugget and Smooth Bourbon have a lease agreement for the land and building for an annual rent of $15 million. Following the Acquisition, Smooth Bourbon will be a consolidated subsidiary of Century.
The Company financed the Acquisition with funds previously borrowed from its existing credit agreement with Goldman Sachs USA. The funds were borrowed on April 1, 2022 and deposited into an escrow account until the Acquisition closed.
“We are very excited to be expanding into Nevada,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked. “The Nugget is a great addition to our portfolio. We have plans to update the façade, signage, slot floor and food and beverage venues of the Nugget. We look forward to working with the staff and community to continue the current success at this property into the future,” Haitzmann and Hoetzinger concluded.
Nugget Casino Resort is located in Sparks, Nevada, conveniently located on Interstate 80 with easy access from Reno-Tahoe International Airport (approximately three miles). The full-service resort includes a large gaming floor, two hotel towers, 114,500 square feet of convention space, an 8,555 seat outdoor amphitheater, a wide variety of casual and fine dining options in addition to several on-site bars and lounges, and a five-story 1,200 space parking garage and additional 1,272 parking spaces. The property consists of 71,200 square feet of casino space, 892 slot machines, 29 table games, 1,382 hotel rooms and five dining venues.
The Reno–Sparks area is famous for its casinos but is also known as a destination for outdoor recreation with proximity to Lake Tahoe and several ski resorts. It has attracted leading technology and manufacturing companies. The economy is diversifying into a broader base that spans healthcare, entrepreneurial startups and technology-based industries.
With this transaction, the Company’s portfolio* increased to 18 casinos world-wide that include 6,955 gaming machines, 249 table games and over 3,100 full-time equivalent employees. On a pro forma basis giving effect to the Acquisition as if it occurred on January 1, 2022, the Company’s net operating revenue and Adjusted EBITDA** for the year ended December 31, 2022 with the Nugget would have been $529.6 million and $129.9 million, respectively. See a reconciliation of the 2022 pro forma results in Supplemental Information below.
Goldman Sachs & Co. LLC served as sole financial advisor to Century Casinos in connection with the Acquisition. Faegre Drinker Biddle & Reath LLP acted as legal advisor to the Company on the transaction.
*As of December 31, 2022, giving effect to the Acquisition but excluding the Company’s ship-based casino.
**Adjusted EBITDA is a non-GAAP financial measure. See Supplemental Information for the definition and reconciliation of Adjusted EBITDA.
