Although it was more formality than anything else, regulators have approved both the combination of Golden Gaming with Lakes Entertainment and Joe DiSimone Jr.’s license for Railroad Pass Hotel and Casino. The 1 merger between Golden Gaming and Lakes Entertainment was finalized August 1. Blake Sartini, CEO of Golden Gaming, will also be CEO and chairman of the new company.
One big piece of the acquisition is the Rocky Gap Casino Resort in Maryland that Lakes Entertainment Owns. “We’re now a company with opportunities in three markets. This combination allows us to explore new opportunities that we couldn’t in the past,” Sartini said.
The companies estimate they will combine for $348.1 million in revenue for 2015 with cash flow of $42.5 million. The long-term debt for the company will sit at $145 million. The merger valued Lakes at $9.57 a share, which is a 37 percent premium to its late January closing. Sartini will receive over 7.8 million shares of stock in the company, which gives him a 35 percent stake in the company, leaving the remaining 65 percent to current Lakes shareholders.
Way down the road in Nevada, near the Hoover Dam, Joe DiSimone Jr. has received final approval for the Railroad Pass Hotel and Casino. The casino originally opened in 1931, and has 120 rooms, 300 slot machines, six table games, along with a sports book. DiSimone Jr. plans to work on the property’s air-conditioning and renovate all the rooms.
