The Federal Reserve also expectedly maintained its pause on rate cuts, but Chair Jerome Powell’s commentary following last week’s Federal Open Market Committee meeting was seen as somewhat hawkish. 

Nonetheless, the Roundhill Sports Betting & iGaming ETF, which is the world’s largest gambling ETF, closed marginally higher for the week.

Esports Entertainment Group Bounces Back After Difficult Week

After being the biggest loser in the preceding week with a 16.7% drop, Esports Entertainment Group was the top gainer among gaming stocks, gaining 8.5% over the past week. Some analysts attribute the gain to the fear of missing out among buyers, given the substantial drop that preceded it.

While the stock is up for the year, it trades approximately 68% below the 52-week high.  Last year, the company voluntarily delisted from the Nasdaq and now trades on the OTC market. It also ceased publicly reporting its earnings, so we don’t get its updated financials.

The company is in severe financial distress amid perennial losses and burgeoning debt, which is making markets wary about the company’s ability to stay afloat.

Century Casino Continues Fightback

With a gain of 15.5%, Century Casinos was another notable winner among leading gaming stocks last week, continuing its strong performance recently. The stock had risen by 10.5% in the preceding week and has now bridged its YTD losses to just under 25%. 

One factor contributing to the positive results last week was the company’s announcement that, starting July 19, Magique, an acclaimed attraction and show, will take center stage in the resort’s Celebrity Showroom.

While there weren’t any other market-moving announcements last week, recent bullish analyst commentary, including that from Bank of America, Deutsche Bank, and Stifel, suggests the stock is undervalued.

Earlier this month, Stifel stated that it expects the shares to rise to $4. Century Casinos’ mean target price is $5, which is about double its current trading price.

DraftKings Leads The Best of the Rest

With a 7% growth, DraftKings was the third-largest gainer last week amid continued optimism over the 50-cent surcharge the company would implement on all bets in Illinois, effective September 1.

Analysts see the announcement as a means to preserve margins and management’s willingness to defend profitability. Jeffreys maintains a “buy” outlook with a $60 price target, about 50% higher than the current price.

Meanwhile, JP Morgan updated its target to $50 per share, representing about a 25% increase. Still, JP Morgan maintains a “mixed” outlook, based on the uncertainty around tax increases in states like Illinois, Louisiana, and Maryland.

Robinhood stock gained 6.3% last week, and while there was no news related to its prediction business, a strong set of numbers for May and expectations of higher trading volumes amid market volatility helped propel the stock higher.

Golden Entertainment stock gained 5.4% last week. The company boasts an attractive dividend yield of 3.5%. It is focused on deleveraging its balance sheet through the sale of non-core assets, allowing the company to focus on its operations in Nevada primarily.

Bally’s Corporation gained 4.3% last week, bouncing back from the 5.2% loss the previous week. The positive result is directly attributed to BetMGM’s announcement of an improved 2025 financial forecast, which lifted much of the industry.

Still, Bally’s stock remains down over 46% for the year, placing it among the worst-performing names in the industry. The company has a substantial debt pile, with net long-term debt of $3.4 billion as of March 31. For context, Bally’s market cap is under $500 million.

Which Gambling Stocks Underperformed Last Week?

Unlike Esports Entertainment Group and Bally’s, which bounced back from a bad week, Genius Sports had the opposite fortune and became the top loser last week with a drawdown of 8.2%.

The stock was among the biggest gainers in the preceding week after it expanded its partnership with the NFL, which will ensure that it remains the league’s exclusive distributor of official data feeds and watch-and-bet services until the end of the 2029 season.

Last week’s price action was more likely a profit-booking exercise amid jitters in the broader markets on geopolitical tensions.

The number two spot went to Huya, whose stock lost 7.3% last week after a steep sell-off on Friday, amid selling in select Chinese shares.

These results were directly affected by Daiwa America downgrading Huya from a “strong buy” to a “hold” rating on Tuesday. On the same day, Daiwa Capital Markets downgraded Huya from an “outperform” rating to a “neutral” rating. 

Playtika stock fell nearly 6% on Friday, partly due to the ex-dividend date, prompting many holders to sell ahead of the expected decline in stock price that typically accompanies ex-dividend events.  The dividend of 10 cents per share will be paid out on July 7.

Corsair Gaming rounded the top losers last week, falling 4.3%. Despite last week’s losses, the stock is up over 36% for the year and is outperforming the broader markets. 

The recent losses appear to be more of a profit-booking exercise, as the stock had risen sharply in the previous few weeks after strong Q1 results.

Other Key Gaming Industry Developments

Last week was quite eventful for gaming stocks, with a broad-based rally on Monday following BetMGM’s announcement of raising its full-year guidance.

It stated that the positive momentum of Q1 has continued into Q2, and the company is witnessing strong growth across both the iGaming and Online Sports businesses. 

BetMGM has raised its full-year revenue guidance, now expecting net revenues to be at least $2.6 billion, up from the previous guidance of $2.4 billion to $2.5 billion. 

It now expects its EBITDA to be at least $100 million, compared to its earlier guidance of reaching positive EBITDA this year.

MGM stock rose 8% on Monday, which was its most significant single-day gain since April. However, the stock was unable to retain these gains and ended the week only 1.9% higher amid broader market turbulence.

The other key gaming industry development was Penn Entertainment’s annual shareholder meeting on Tuesday. As expected, Johnny Hartnett and Carlos Ruisanchez, who activist investor HG Vora backed, were nominated as the company’s directors. 

While the stock was trading slightly down in early trading on Wednesday, it eventually closed 4% higher that day on optimism that the new directors would push for steps to enhance shareholder value.

In addition to the bet surcharge announcement in Illinois, another significant move by DraftKings was the launch of a Political Action Committee (PAC), becoming the first sports betting operator to do so. 

Through its PAC, the company says it will enhance the customer experience. However, the PAC will also increase DraftKings’ political influence amid factors like tax increases, antitrust concerns, and legislative scrutiny. 

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The Dow Jones lost over 700 points, yet major market indices managed to eke out a small gain during the week, extending the positive trend to three weeks. 

The Roundhill Sports Betting & iGaming ETF, which is the world’s largest gambling ETF, gained over 2% for the week. 

Gaming Stocks with Strong Weekly Momentum

With a gain of 10.5%, Century Casinos was the biggest gainer among leading gaming stocks last week. The stock rose by almost 3.8% on Friday, despite broader markets dipping due to increasing tensions in the Middle East.

However, the stock has lost 32.1% year-to-date, making it one of the worst-performing stocks among its peers this year.

Some reasons for the jump include bullish analyst commentary, particularly from Bank of America and Deutsche Bank, which label it as undervalued. Another factor was investor enthusiasm over renovation progress in Missouri and Nevada properties.

Furthermore, investors welcomed Century’s partnership with BetMGM for the launch of sports betting in Missouri.  

Technology provider Gan Ltd. registered a 5.9% gain as the company was officially acquired by Sega Sammy Holdings, marking its departure from NASDAQ. 

Codere Online, the digital arm of the Spanish-based Codere Group, climbed 4.2% after filing its 2024 annual report just in time to regain compliance with NASDAQ. That was the second time the company faced delisting by NASDAQ. 

The weekly growth for Genius Sports, the technology and sports data provider, was primarily driven by the announcement that the company expanded its partnership with the NFL. 

Through the deal, Genius Sports will remain the league’s exclusive distributor of official data feeds and watch-and-bet services until the end of the 2029 season.

Super Group, the parent company of Betway sportsbook, which exited the US last year, has continued its strong performance since the beginning of the year and rose 3.1% last week. 

A primary reason was the board’s declaration of a $0.04 per-share cash dividend, signaling the company’s confidence. Also, analysts at BTIG and Zacks remain bullish on the stock, forecasting EBITDA margins over 35% in key European markets. 

Underperforming Gambling Stocks: What’s Behind the Slide?

Esports Entertainment Group was the top loser among gaming stocks, falling 16.7% over the past week. Following last week’s drawdown, the stock now trades approximately 62% below its 52-week high.

Investor’s reaction comes amid the absence of news on funding or strategic alliances to keep the company afloat. The lack of news has also increased concerns over the company’s Q1 cash burn of $11 million. 

With losses of 6.8%, Sea Limited was the second-worst-performing gaming stock last week. Reasons include geopolitical tensions, such as tariffs on Southeast Asian countries, which affect its e-commerce and gaming businesses. 

The company’s gaming arm accounts for a small fraction of its revenue, but investors have sold in fear of escalating geopolitical headwinds. 

Light & Wonder Inc. was another loser with a 5.6% stock decline for the week, after Morgan Stanley trimmed its price target, citing a saturated US slot-machine market. Additionally, some insiders have been net sellers, raising concerns among investors.  

Bally’s Corporation dipped 5.2% for the week. Concerns are growing over the company’s debt-to-equity ratio, with analysts highlighting that the company is running on significant financial constraints. 

While the company faces financial concerns and downgrades in credit ratings, Bally’s is continuing with its $1.7 billion Chicago casino project and pursuing a casino license in New York City.

The Chinese game-streaming platform Douyu International Holdings rounded out the bottom five with a 4.5% decline for the week. This was a result of investors reacting to the company’s disappointing Q1 results, which included an 18% year-over-year decline in revenue and a 12% decline in active users.

Other Key Industry Developments

Last week, Flutter announced 250 job cuts in the UK, primarily at the company’s Leeds office, blaming “increasing cost and regulatory pressure.” The company also doubled down on share repurchases last week as part of its multi-year buyback plan.

In response to the per-wager tax that Illinois has proposed in its new state fiscal budget, Flutter-owned FanDuel announced a 50-cent surcharge on all wagers last Tuesday. 

DraftKings followed suit two days later and announced a 50-cent transaction fee effective September 1 on all mobile and online bets placed in the state through its Sportsbook.

Bernstein listed DraftKings as among the best picks in the entertainment sector, along with Spotify and Live Nation. DraftKings’ consensus target price is $54.41, which is almost 50% higher than its current price.

Tuesday evening, Rush Street Interactive announced that it would expand its BetRivers Poker platform into Delaware, Michigan, and West Virginia. Markets gave the announcement a thumbs up, and the stock rose sharply on Wednesday. However, it closed down just over 1% for the week after a 4% drawdown on Friday.

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Haitzmann and Hoetzinger added that they expect everything the company has been working towards across last year and this year to come to fruition in 2025.

Publishing its preliminary fourth quarter results, Century Casinos is estimating $140m to $145m in net operating revenue, up in comparison to $104m in Q4 2022.

The company is expecting a net loss of $14m for the quarter, down in comparison to a net loss of $4m during the same period last year.

Haitzmann and Hoetzinger noted: “We expect 2024 to be a transitional year for the company as we continue to integrate the Nugget and Rocky Gap operations into our portfolio and complete our two large construction projects in Missouri. 

“We estimate our company-wide capital expenditures, excluding the Caruthersville project that we are financing through VICI, to be approximately $46m in 2024. We look forward to 2025, when we can see everything we are working towards in 2023 and 2024 coming to fruition without the disruptions we are currently experiencing.”

After repaying the $30m revolving facility with Goldman Sachs Bank USA that Century Casinos borrowed in July 2023 in connection with the Rocky Gap acquisition, the company has “agreed to buy back $3.5m of its term loan with Goldman at 97 per cent of the cost of the debt”. 

This transaction is expected to take place later this month, and the company is currently able to borrow the full amount of the revolving facility.

In Poland, Century Casinos has secured licences to reopen two casinos it had to close in October last year due to the expiration of their licences. The casino in Bielsko-Biala is expected to reopen by the end of this month, while the casino in Katowice is expected to be operational again in mid-March.

While the company’s Wroclaw casino was closed in November due to its licence expiring, a new licence has been granted. The company expects to open the casino in a new location in mid-2024.

In Missouri, Century Casinos noted that construction of the hotel in Cape Girardeau – The Riverview – and a land-based casino and hotel in Caruthersville are on time and budget.

Cape Girardeau is expected to open in the first week of April, while the Caruthersville location will be operational by the end of the year.

The Caruthersville project is being financed by VICI Properties, “inclusive of approximately $19m of cash on hand that was previously funded by VICI but has not yet been spent on the project and is included in the company’s consolidated balance sheet as of December 31, 2023”.

Century Casinos is estimating an adjusted EBITDAR for Q4 of $24m to $26m, an increase against Q4 2022’s $22m, as well as cash and cash equivalents of approximately $171m, up in comparison to the previous year’s $102m.

Haitzmann and Hoetzinger stated: “We feel comfortable with our cash position and capex plan, and we continue to look for every opportunity to reduce operating costs going forward to maximise earnings and cash flow. In addition, we are evaluating ways to reduce our non-operating costs going forward.”

Century Casino is expecting to publish its full Q4 and full year 2023 financial results on March 14.

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A number of purchases have bolstered the company’s land-based network through 2023, the most recent of which saw a partnership with Vici Properties inked to finalise the joint purchase of Maryland’s Rocky Gap Casino Resort for a total price of $260m.

The agreement saw the former acquire the operations of the gaming property for approximately $56.1m, while the real estate investment trust gained the land and buildings associated with the venue for $203.9m.

This followed a definitive agreement being entered into earlier in the year that saw the group purchase 50 per cent of Smooth Bourbon as well as Nevada’s Nugget Casino Resort from Marnell Gaming for $195m.

Most recently, Vici was once again in collaboration with Century courtesy of the purchase of four Alberta-based venues for a purchase price of C$221.7m (US$164.7m).

The quartet of establishments concerned are Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.

“With our acquisitions of the Nugget Casino Resort and Rocky Gap Casino, Resort & Golf we achieved record high net operating revenue and adjusted EBITDA,” commented Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos.

“One time expenses related to the Rocky Gap acquisition and Canada sale leaseback transaction negatively impacted our earnings from operations and net loss for the quarter. 

“Looking ahead we anticipate revenue and operating expense trends to remain consistent with what we have seen the last several quarters. 

“The completion of the Canada sale leaseback reduced our net debt from $255.5m as of June 30, 2023, to $158.9m as of September 30, 2023.”

These updates came as the operator disclosed its performance through the year’s first quarter, which saw revenue forge ahead 43 per cent year-on-year to $161.17m (2022: $112.55m) driven by increases across all geographical segments.

The United States continues to take the lion’s share courtesy of a 65 per cent surge to $116.86m (2021: $70.71m), with Polish venues up eight per cent to $23.39m (2022: $21.73m) and Canada rising four percentage points to $20.92m (2022: $20.06m).

However, net loss fell to $14.17m YoY from an income of $2.94m due to a significant drop in Canada and smaller downfall in Poland, while adjusted EBITDA increased nine per cent to $33.34m (2021: $28m).

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This saw the acquisition of the operations of Nugget Casino Resort from Marnell Gaming for approximately $100m, after having previously shelled out $95m to purchase 50 per cent of the interests in Smooth Bourbon, which owned the land and building on which the gaming venue is located.

The Nugget and Smooth Bourbon have a lease agreement for the land and building for an annual rent of $15m, with the latter also consolidated as a subsidiary of Century.

Located in Sparks, Nevada, the establishment comprises 71,200 square feet of casino space, which houses 892 slot machines and 29 table games.

“Construction of our hotel in Cape Girardeau, Missouri and our land-based casino and hotel in Caruthersville, Missouri continues, and we are excited to see the progress made at these properties,” stated Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos. 

“We completed our acquisition of the Nugget Casino Resort on April 3, 2023. We have begun to integrate the Nugget operations and expect to see meaningful growth from this acquisition in the future. 

“We anticipate an immediate impact to net income because we had been paying interest on the $100m in escrow that we borrowed in April 2022 to finance the OpCo acquisition without net income from the Nugget to support it.”

These updates came as the operator disclosed its performance through the year’s first quarter, which saw revenue rise five per cent year-on-year to $108.5m (2022: $103.1m) driven by increases across all geographical segments.

The United States continues to take the lion’s share courtesy of a two per cent rise to $66.36m (2022: $65.24m), with Polish venues up 17 per cent to $25.57m (2022: $21.82m) and Canada rising three percentage points to $16.5m (2022: $15.9m).

However, net loss fell to $1.24m YoY from an income of $218,000 due to drops in the US and corporate and other reporting segments, with adjusted EBITDA up nine per cent to $26m (2022: $23.82m).

“We are pleased that each of our reportable segments had revenue growth for the first quarter of 2023 compared to the first quarter of 2022,” noted Haitzmann and Hoetzinger.

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Publishing its quarterly financial results for the three-month period ending September 30, 2023, the NYC-based REIT’s total revenues increased to $904.3m (2022: $751.5m), while net income attributable to common stockholders rose 68 per cent to $556.3m (2022: $330.9m). 

Coinciding with this growth, AFFO attributable to common stockholders reached $547.6m, an increase of 16 per cent when compared to Q3 2022’s $470.7m, alongside a per-share increase of 11 per cent to $0.54 (2022: $0.39). 

Commenting on the company’s robust performance, Edward Pitoniak, CEO of VICI Properties, said: “Vici’s third quarter financial performance reflects our sustained, sustainable commitment to accretive growth and capital deployment through acquisitions and strategic financing activity, exemplified by approximately 20 per cent revenue growth and nearly 11 per cent growth in AFFO per share year-over-year.” 

Through the quarter, Vici closed its move to acquire the Rocky Gap Casino Resort from Century Casinos, as well as the real estate for Century’s four gaming properties in Alberta, Canada, securing further North American expansion for Vici. 

The firm’s performance was also supported by the decision to extend its partnership with Canyon Ranch, forming a preferred equity investment, a mortgage loan and call rights to acquire Canyon Ranch Tucson and Canyon Ranch Lenox. 

Pitoniak continued: “During the quarter, in addition to closing Rocky Gap and announcing the expansion of our Canyon Ranch growth partnership, we expanded our international presence through closing the acquisition of four casino properties in Alberta, Canada with our existing tenant and partner, Century Casinos.”

Vici also spent the quarter focusing on new experiential sectors, having entered the family entertainment industry through the purchase of 38 bowling entertainment centres in a sale-leaseback transaction with Bowlero. 

“Subsequent to quarter end, we entered into a new experiential sector with Bowlero, the market leader in reinvigorating the programming and economics of the bowling experience through their innovative consolidation and growth model,” Pitoniak added. 

“In this partnership, we acquired 38 Bowlero properties and concurrently bolstered our embedded growth pipeline by obtaining a right of first offer to acquire current or future Bowlero real estate in the coming years through sale-leaseback transactions.

“We also expanded our presence in 11 new states and added another publicly traded tenant to our roster. VICI’s differentiation stems from our commitment to partnering with operators who define their respective experiential categories, as Bowlero has done with the bowling experience.”

Other statistics highlighted by Vici Properties included a quarterly cash dividend of $0.415 per share, representing a six per cent increase compared to Q3 2022. The company ended the quarter with $510.9m in cash and cash equivalents and $807.2m of estimated available forward sale equity proceeds. 

Witnessing a strong performance for the period, Vici Properties updated its full-year AFFO guidance, expecting it to fall between $2.170bn and $2.180bn.

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The transaction, which comes off the back of the operator reporting a positive outlook following a pleasing second quarter, represents a purchase price of C$221.7m (US$164.7m).

“The company retained approximately C$154.5m (US$113.2m) of the purchase price after giving effect to the purchase of the Century Downs land, selling expenses, Canadian and US taxes and proceeds to be paid to the minority owners of Century Downs,” it was noted by Century Casinos.

The quarter of establishments concerned are Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.

Simultaneous with the closing of the transaction, the Century Canadian portfolio has been added to the existing triple-net master lease agreement between subsidiaries of Vici and the company. 

This will see a C$17.3m ($12.7m) addition made to the current agreement. Additionally, terms have also been to ensure that the lease has a full 15-year initial term, with four five-year tenant renewal options

“We are pleased to extend our good partnership with VICI to our Canada portfolio,” said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos.

“This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”

In a Q2 breakdown that was issued last month, Century Casinos declared a net operating revenue of $136.8m, a record for the operator and up 23 per cent in comparison to the previous year (Q2 2022: $111.1m). This also represents an improvement on Q1’s $108.5m.

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The operator noted that it expects a “positive” outlook for the Sparks, Nevada location for the second half of the year and during 2024 following record bookings at its hotel. 

Movements for Century Casinos 

Publishing its Q2 results, Century Casinos declared a net operating revenue of $136.8m, a record for the operator and up 23 per cent in comparison to the previous year (Q2 2022: $111.1m). Revenue also improved upon Q1’s $108.5m.

Earnings from operations dropped by 10 per cent year-over-year to $18.6m (2022: $20.8m), resulting in a net loss of $2m, down 122 per cent YoY from net earnings of $8.9m last year.

Adjusted EBITDA for the quarter ended at $29.3m, down two per cent in comparison to the previous year (2022: $29.8m).

During the measuring period, Century Casinos made several acquisitions and sales which had an impact on financial performance.

In April, the operator added Nugget Casino Resort to its portfolio via the acquisition of Nugget Sparks for $104.7m and 50 per cent of Smooth Bourbon for $95m. Nugget owns and operates Nugget Casino Resort while Smooth Bourbon owns the real property and leases it to Nugget.

The following month, Century Casino entered into definitive agreements for subsidiaries of VICI PropCo Buyer to acquire the Century Canadian Portfolio for an aggregate purchase price of CAD $221.7m in cash. It is expected to close in the second half of 2023. 

The Canadian Portfolio includes the real estate assets of Century Casino & Hotel Edmonton, Century Casino St Albert and Century Mile Racetrack and Casino in Edmonton, Alberta, and Century Downs Racetrack and Casino in Calgary, Alberta.

“We are pleased with the results of this quarter, generating record revenue due to the addition of the Nugget Casino Resort, partially offset by construction disruption at our Missouri properties,” stated Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos.

“We believe the outlook for the Nugget is positive with record group bookings at the hotel for the second half of this year and continuing into 2024.”

US operations growth

Per segment, the US was the only region to see improvements during Q2 in both revenue and adjusted EBITDA. Canadian operations saw declines in both revenue and adjusted EBITDA, while Poland had an uptick in revenue but a drop in adjusted EBITDA.

For the US – Central City and Cripple Creek in Colorado, Mountaineer in West Virginia, Cape Girardeau and Caruthersville in Missouri, Nugget Casino Resort in Nevada – revenue rose by 34 per cent to $94.4m (2022: $70.3m) while adjusted EBITDA improved by 15 per cent to $25.8m (2022: $22.4m).

For Canada – Edmonton, St. Albert and Century Mile in Edmonton and Century Downs in Calgary – revenue dropped slightly to $18.8m (2022: $19m), while adjusted EBITDA fell by eight per cent to $5.1m (2022: $5.6m).

Casino Poland revenue rose by 8 per cent to $23.5m (2022: $21.7m), but adjusted EBITDA declined significantly by 31 per cent to $1.9m (2022: $2.7m). Corporate and other revenue fell by 94 per cent to $4,000 (2022: $65,000), while its adjusted EBITDA decreased by 295 per cent to negative $3.5m (2022: negative $896,000).

Following the end of the quarter, Century Casino also completed the acquisition of Rocky Gap Casino for $61.2m.

Haitzmann and Hoetzinger concluded: “We are in a transitional stage taking over two properties in gaming jurisdictions new to us, and we incurred additional expenses related to the acquisitions while facing inflationary cost pressures from payroll wages and benefits, insurance and utilities.

“We look forward to continuing growth from the Nugget and contribution to our results from Rocky Gap, our newest acquisition in Maryland.”

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This has seen the former acquire the operations of the gaming property for approximately $56.1m, while the real estate investment trust has gained the land and buildings associated with the venue for $203.9m.

Simultaneous with the closing of the transaction, Vici has amended its existing triple-net master lease agreement with Century, with a $15.5m increase subsequently added.

Additionally, the terms have also been altered so that the lease now comprises a full 15-year initial base lease term, with four 5-year tenant renewal options. 

Rocky Gap Casino Resort, located in Flintstone, comprises over 25,000 square feet of gaming floor that includes 630 slot machines and 16 table games, a Jack Nicklaus designed 18-hole golf course, 5,000 square-foot events centre, meeting spaces, spa, and several outdoor activities.

The property has recently invested approximately $10m in improvements to its hotel, slot machines, restaurants, and sports lounge, with a potential expansion of the casino and hotel also possible.

As a result of this latest transaction, Century Casinos’ network has increased to 19 casinos that include 7,565 gaming machines, 268 table games and over 4,100 full-time equivalent employees.

“We are very excited to be expanding into Maryland,” said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos. 

“Rocky Gap is a great addition to our portfolio. We look forward to working with the staff and community to continue the current success at this property into the future.”

Earlier in the year, Vici Properties disclosed a third international investment after entering into definitive agreements to purchase the real estate assets of a quartet of gaming establishments in a sale and leaseback arrangement.

This saw the company acquire Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino from Century Casinos for C$221.7m (US$164.7m) in cash.

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This will see the real estate investment trust acquire Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino from Century Casinos for C$221.7m (US$164.7m) in cash.

The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of 2023.

This comes after the group pulled the trigger on a maiden international investment in January, which also came via the purchase of four gaming properties located in Alberta for C$271.9m (US$200.8m). This, at the time, saw Pure Canadian Gaming added as an eleventh tenant.

The purchase will see Vici Properties add a combined 69,360 square feet of gaming space that boast 2,443 slots and 78 VLTs.

John Payne, President and Chief Operating Officer of Vici Properties, said, “We are thrilled to announce our third international investment with the acquisition of Century’s four Canadian casino assets, demonstrating our ongoing desire to expand internationally and confidence in the Canadian gaming market. 

“We are also pleased to continue growing our partnership with Century by supporting their asset monetisation strategy, unlocking value that fuels their strategic growth initiatives.”

Upon closing, the Century Canadian venues will be added to an existing triple-net master lease agreement, which will see annual rent increase by C$17.3m (US$12.8m) to represent an implied acquisition capitalisation rate of 7.8 per cent.

Furthermore, the lease will also be extended to have a full 15-year initial base lease term, with four five-year tenant renewal options also included.

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