Golden Entertainment paid million to buy a small slot machine company and add its 1,000 slots to the company’s portfolio.
Golden did not name the company after announcing its purchase in December, but said it the deal immediately would add to its earnings. The seller agreed to accept 50,000 shares in Golden Entertainment as part of the transaction.
Golden said it will pay for the transaction with cash and via a line of credit. With its recent merger complete, Golden now has slots in 46 taverns across Nevada and announced it will add four more in Las Vegas.
The deal means Golden Entertainment has more than 8,600 slot machines in Nevada, making it the state’s largest slot machine operator. Most of its games are located in bars and restaurants.
A local gaming analyst says the move positions Golden Entertainment to compete more directly with Eldorado Resorts, which was much like Golden when it first was created.
Both started as private companies that became public through mergers, and each was saddled with high debt burdens, but managed to pay them down through refinancing deals, and have large internal owners.
The Sartini family owns 35 percent of Golden Entertainment, which it created via a $341 million merger with Lakes Entertainment.
