Century Casinos has signed a definitive agreement to purchase the operations of Rocky Gap Casino Resort from Lakes Maryland Development for approximately $56 million.
The purchase price is based on a 4.9x earnings before interest, taxes, depreciation, and EBITDA multiple for 2021. Century has confirmed that it will fund the acquisition with cash on hand.
Rocky Gap, based in Flintstone, Maryland, reported net operating revenue of $78 million and adjusted EBITDA of $27 million for the fiscal year ended December 31, 2021.
The casino has a 25,000-square-foot gaming floor, 630 slot machines, 16 table games, 198 hotel rooms, and an 18-hole Jack Nicklaus-designed golf course. “The addition of Rocky Gap is another important milestone in our pursuit of prime US assets,” Century Co-CEOs Erwin Haitzmann and Peter Hoetzinger said. We will oversee a US portfolio that stretches from east to west with this acquisition and our pending acquisition of the Nugget Casino Resort in Nevada.” We look forward to collaborating with the Maryland Lottery and Gaming Control Agency to obtain gaming approvals, as well as with the casino’s leadership and team members, to ensure a smooth transition and a bright future for Rocky Gap.” While Century will take over Rocky Gap’s operations, Vici Properties will take over the real estate assets for approximately $204 million. Century will amend its current triple net lease agreement with Vici to include the Rocky Gap property, with an initial annual rent of approximately $15.5 million. Century released its financial results for the second quarter of 2022 earlier this month, reporting positive earnings and revenue performance.
Net operating revenue was $111.1 million, a 21% increase year on year.