VICI Properties, Century Casinos Agree to Acquire Rocky Gap Casino Resort in Flintstone, Maryland for $260M

by Jeff Shaw

FLINTSTONE, MD. — New York City-based VICI Properties Inc. (NYSE: VICI) and Century Casinos Inc. (NASDAQ: CNTY) have entered into a definitive agreement to acquire the operations of Rocky Gap Casino Resort from Golden Entertainment Inc. for approximately $260 million.

Rocky Gap is situated along Lake Habeeb in Flintstone, located in the western panhandle of Maryland between Pennsylvania and West Virginia. It offers a casino, hotel, conference center, comedy club, five food-and-beverage venues, 5,000 square-foot events center, 18-hole golf course designed by Jack Nicklaus, spa, indoor pool, fitness center, pro shop and multiple outdoor recreational activities.

The casino comprises more than 25,000 square feet of gaming floor, 630 slot machines, 16 table games and two casino bars. The hotel offers 198 rooms. The seller recently invested $10 million in renovations to its hotel, slot machines, restaurants and sports lounge.

“We are looking forward to working with the Maryland Lottery and Gaming Control Agency to obtain gaming approvals and with the casino leadership and team members to effect a smooth transition and great future for Rocky Gap,” say Erwin Haitzmann and Peter Hoetzinger, Co-chief executive officers of Century Casinos.

VICI Properties will acquire an interest in the land and buildings associated with Rocky Gap for approximately $204 million, representing a 7.6 percent capitalization rate. Century Casinos will acquire the operating assets of the property from Lakes Maryland Development LLC for approximately $56.1 million.

As part of the transaction, Century will amend its triple-net lease agreement with VICI Properties to add the Rocky Gap property. The amendment to the lease will include initial annual rent for the Rocky Gap casino of approximately $15.5 million. Upon closing of the transaction, the lease will have a 15-year initial base lease term, with several five-year tenant renewal options.

The transaction, subject to regulatory and governmental approvals and customary closing conditions, is expected to close in mid-2023.

— Channing Hamilton

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