Century Casinos and VICI Properties have announced a definitive agreement to purchase Rocky Gap Casino Resort in Maryland. Century Casinos will acquire the operations of the casino for $56 million in cash, while VICI Properties will acquire the real estate assets for approximately $204 million. The sale is expected to be completed in mid-2023, subject to regulatory approvals. The acquisition of Rocky Gap Casino Resort marks an important milestone for Century Casinos as it expands its portfolio of prime assets across the United States.
Overview of Rocky Gap Casino Resort:
Situated on 270 acres along Lake Habeeb in Western Maryland, Rocky Gap Casino Resort offers a wide range of amenities and attractions. The resort features an 18-hole, Jack Nicklaus-designed golf course and a 5,000-square-foot events center. The casino itself boasts a 25,000-square-foot gaming floor with 630 slot machines and 16 table games. Additionally, the resort includes a 198-room hotel and five restaurants. Recent investments of approximately $10 million have been made by Golden Entertainment, the current owner, to enhance the casino facilities.
Expansion and Growth Potential:
Century Casinos sees significant potential for expansion at Rocky Gap Casino Resort. The resort’s strategic location provides an opportunity to capture more customers from adjacent markets. With the acquisition, Century Casinos plans to work closely with the casino leadership and team members to ensure a smooth transition and a prosperous future for Rocky Gap. There is also the potential to partner with a sports betting operator in Maryland, enabling the introduction of sports betting services at the resort.
Financial Performance and Maryland Casino Market:
Rocky Gap Casino Resort has demonstrated strong financial performance, reporting net operating revenue of $78 million and Adjusted EBITDA of $27 million for the year ended December 31, 2021. This highlights the casino’s ability to attract visitors and generate consistent revenue. In July, Maryland’s casinos collectively generated $181.5 million in gaming revenue, setting a new single-month record. MGM National Harbor led the way with $77.2 million in revenue, followed by Live! Casino & Hotel with $61.5 million. Rocky Gap Casino reported $6.2 million in gaming revenue, demonstrating its contribution to the overall market.
The acquisition of Rocky Gap Casino Resort by Century Casinos and VICI Properties represents a strategic move to expand their presence in the US casino market. With the addition of this prime asset in Maryland, Century Casinos further strengthens its portfolio, which already includes the pending acquisition of the Nugget Casino Resort in Nevada. The acquisition provides opportunities for expansion, capturing new customers, and potentially introducing sports betting services. As Maryland’s casino market continues to thrive, Rocky Gap Casino Resort is well-positioned to contribute to the state’s gaming revenue and offer an exceptional entertainment experience for visitors.