Affinity Gaming LLC of Las Vegas today said it's acquiring casinos in Black Hawk, Colo., as part of deals in which it's selling its struggling Nevada slot route and its casinos in Pahrump and Searchlight.
Affinity, the former Herbst Gaming, is best known for owning the complex of three casinos at Primm on Interstate 15 on the California border south of Las Vegas.
Today Affinity it said it would sell the majority of its Nevada slot route and two small Pahrump casinos to Golden Gaming Inc. of Las Vegas, the casino, slot route and PT's pub company controlled by the Sartini family.
The deal beefs up Golden Gaming's business in Pahrump, where it has the Pahrump Nugget Hotel & Casino.
Golden's Golden Route Operations says that even before today's deal, it was Nevada's third largest slot route operator with more than 2,500 machines in more than 200 locations.
As part of the transaction, Affinity agreed to buy Golden's Golden Mardi Gras Casino, Golden Gates Casino and Golden Gulch Casino — all in Black Hawk.
Golden Gaming says these properties outside Denver have more than 1,780 slot and video poker machines, 10 blackjack tables, a poker parlor with 14 live games, four restaurants, three bars and a 750-space parking garage.
In a separate deal, Afffinity is selling its Searchlight casino and Terrible Herbst convenience store slot route to JETT Gaming LLC, which is owned by the Herbst Gaming Trust. The Herbst family had lost its casino and slot route business in the former Herbst Gaming bankruptcy.
“In accordance with our long-term strategic plans for the company, we are selling several non-core assets, including all of our slot route in two separate transactions, while at the same time acquiring attractive casino assets in Black Hawk, Colo., further diversifying our geographic footprint,” David Ross, CEO of Affinity Gaming, said in a statement.
Terms were not immediately disclosed.
In Pahrump, the Terrible's Town Casino has some 344 slot machines while the Terrible's Lakeside Casino & RV Park in Pahrump has about 194 slots, Affinity said in its annual report. The Searchlight casino has 75 slot machines.
In the second quarter, Affinity said its slot route produced about $45 million in revenue, down from $46.7 million in the year-ago quarter. That business, with some 6,000 machines around the state, like locals casinos has suffered as high unemployment and foreclosures have left Nevadans with less cash to play the machines at locations such as grocery stores and bars. Still, it produced positive EBITDA — earnings before interest, taxes, depreciation and amortization — of $2.25 million in the quarter, up from $1.4 million in the year-ago quarter.
As to today's deals, executives issued these statements:
“I am pleased to welcome Affinity’s Pahrump properties and its slot route operations to the Golden Gaming team,” said Blake Sartini, CEO of Golden Gaming.
“Today’s transaction will allow us to consolidate our operations in Nevada and exemplify my family’s commitment to the entire Nevada gaming market and belief that the long term growth and vibrant economic trends in the state will resume over time. I also want to thank our Black Hawk employees for their dedication and commitment and am confident they have a bright future with Affinity Gaming.”
“We are pleased to have the opportunity to acquire the Searchlight casino and Terrible Herbst convenience store slot route operations,” said Jerry Herbst, chairman of JETT Gaming. “The properties have been an important part of Herbst for a considerable length of time, and we welcome the employees from those operations back to the Herbst family.”