The Maryland Gaming Control Board recently approved the proposed merger of Las Vegas-based Golden Gaming and Minnesota-based Lakes Entertainment. The deal will result in a publicly traded company called Golden Entertainment that will take over control of Rocky Gap Casino Resort in Cumberland, Maryland. Golden Gaming will pay .57 per share of Lakes, which is a premium of about 37 percent. Also, Golden Gaming will receive about 7.8 million shares of Lakes stock, or about 35.7 percent of the post-merger shares. Current Lakes shareholders will keep the remaining stock.
Golden Gaming Chief Executive Officer Blake Sartini, who will remain the head of the merged company, said, “It was not hard to get my head around the prospect of putting these two companies together. As we got larger and became more diverse, more successful, opportunities presented themselves. This opportunity, amongst many others that we had looked at, came across my desk. And we really began to research and look at it, and very quickly realized that it was a very good match for us.”
Founded by the Sartini family in 2001, Golden Gaming has grown significantly in recent years. In 2012, the company acquired a slot machine route and two casinos from Affinity Gaming, and last year it acquired four Irish-themed taverns that became the Sean Patrick’s brand. Next, Golden Gaming has plans to enter the Montana slot machine business. Currently the company operates three casinos in Pahrump, Nevada, plus dozens of taverns in the state under the brands of PT’s, Sierra Gold and Sean Patrick’s. In addition, Golden Gaming operates the state’s largest slot route with thousands of machines in hundreds of locations statewide.
The board unanimously approved the Lakes merger, which previously had been approved by gaming regulators in Maryland as well as Lakes shareholders. The Nevada gaming commission is expected to give final approval at any time.
