{"id":262761,"date":"2023-03-06T11:21:49","date_gmt":"2023-03-06T17:21:49","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=262761"},"modified":"2023-03-06T12:01:12","modified_gmt":"2023-03-06T18:01:12","slug":"golden-selling-distributed-gaming-unit-for-361-5-million","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/","title":{"rendered":"Golden Entertainment Sells Distributed Gaming Unit for $361.5 Million"},"content":{"rendered":"

Golden Entertainment (NASDAQ: GDEN) announced Monday it’s selling its distributed gaming operations in Montana and Nevada for $322.5 million in cash plus estimated cash considerations of $39 million upon closing of the transaction.<\/p>\n

\"Golden
Golden Entertainment’s Strat Las Vegas. The company is selling its distributed gaming unit. (Image: OnTheStrip.com<\/em>)<\/figcaption><\/figure>\n

Privately held J&J Ventures Gaming is acquiring the businesses from Golden and will enter into a five-year agreement with the casino operator to \u201csupport the gaming operations of Golden\u2019s branded tavern locations in Nevada.\u201d Those include PT\u2019s Pubs, which are ubiquitous throughout the Las Vegas Valley. It was mentioned here last week<\/a> that Golden could mull a sale of the distributed gaming unit as an avenue to raise cash to reduce debt and support share repurchases.<\/p>\n

J&J Ventures Gaming will acquire Golden\u2019s Distributed Gaming Operations in Nevada for $213.5 million plus an estimated $34 million of purchased cash and Golden\u2019s Distributed Gaming Operations in Montana for $109 million plus an estimated $5 million of purchased cash, subject to customary working capital adjustments,\u201d according to a statement.<\/p><\/blockquote>\n

Net of $3.8 million in corporate costs, the sale price represents a multiple of 9x of adjusted 2022 earnings before interest, taxes, depreciation, and amortization (EBITDA) for Golden\u2019s distributed gaming arm. The transaction is scheduled to close by the end of this year.<\/p>\n

Golden Distributed Gaming Sale \u2018Simplifies Story\u2019<\/h2>\n

B. Riley analyst David Bain, who initially floated the idea of Golden divesting the distributed gaming unit to unlock shareholder value, said the sale \u201csimplifies\u201d the story around the stock and allows the company to focus on its Nevada operations.<\/p>\n

\u201cWe believe valuation should go higher. GDEN\u2019s third-party distributed gaming business was typically the least understood and thought of business by investors, in our view,\u201d wrote Bain in a note to clients on Monday. \u201cWe believe GDEN\u2019s remaining operations combine for a strong, high-margin play on NV growth\/catalysts. Essentially, we see GDEN as now a sharpened, simplified NV pure play.\u201d<\/p>\n

He reiterated a \u201cbuy\u201d rating on the shares with a $70 price target, implying upside of 72.66% from the March 3 close.<\/p>\n

\n

With its $260 million sale<\/a> of the Rocky Gap Casino Resort in Flintstone, Md., announced last August and slated to close in the second quarter, Golden will be able to further its operations in its home state because Rocky Gap is the lone venue in its portfolio located outside of Nevada.<\/p>\n<\/div>\n

\u201cFor Golden, these transactions will allow us to focus our management team and capital on our portfolio of wholly owned casinos and taverns in Nevada and create additional value for our shareholders,\u201d said CEO Blake Sartini in a statement detailing the deals with J&J Ventures.<\/p>\n

Golden\u2019s Golden Silver State Opportunity<\/h2>\n

Riley\u2019s Bain notes Golden is unlikely<\/a> to pursue acquisition opportunities this year, opting to focus on its Nevada casino and pub units. But it could mull regional\/non-Las Vegas Strip variety purchases in 2024.<\/p>\n

\u201cMore likely, we see increased existing and new return of capital policies. We anticipate more aggressive share repurchases through this year and into next, particularly if shares remain near current levels with a stable economy and initiation of dividend policy and\/or a special dividend,\u201d<\/strong> noted the analyst.<\/p>\n

He added that Golden is unlikely to consider an outright sale of itself at current levels. Between the operator\u2019s real estate holdings not being adequately valued by public markets and the departure of the distributed gaming unit, the company is now \u201ca much simpler, attractive target for acquirers, in our view.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Golden Entertainment (NASDAQ: GDEN) announced Monday it’s selling its distributed gaming operations in Montana and Nevada for $322.5 million in cash plus estimated cash considerations of $39 million upon closing of the transaction. Privately held J&J Ventures Gaming is acquiring the businesses from Golden and will enter into a five-year agreement with the casino operator […]<\/p>\n","protected":false},"author":46,"featured_media":238623,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810,32093],"tags":[81903,81898,81966],"acf":[],"yoast_head":"\nGolden Selling Distributed Gaming Unit For $361.5 Million<\/title>\n<meta name=\"description\" content=\"Golden Entertainment divesting distributed gaming biz for $361.5 million in cash.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Golden Selling Distributed Gaming Unit For $361.5 Million\" \/>\n<meta property=\"og:description\" content=\"Golden Entertainment divesting distributed gaming biz for $361.5 million in cash.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-06T17:21:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-06T18:01:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strat.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/\",\"url\":\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/\",\"name\":\"Golden Selling Distributed Gaming Unit For $361.5 Million\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strat.jpg\",\"datePublished\":\"2023-03-06T17:21:49+00:00\",\"dateModified\":\"2023-03-06T18:01:12+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Golden Entertainment divesting distributed gaming biz for $361.5 million in cash.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/golden-selling-distributed-gaming-unit-for-361-5-million\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strat.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strat.jpg\",\"width\":1500,\"height\":1000,\"caption\":\"Golden Entertainment's Strat Las Vegas. 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