VICI Acquiring The STRAT and Other Golden Entertainment Properties, Expanding Nevada Holdings

^{The STRAT, one of the most recognizable resorts on the north part of the Strip, is the highlight of VICI’s new Nevada casino acquisition. (Photo: JHVEPhoto / Alamy)}

VICI Properties, the largest property owner on the Las Vegas Strip, announced a move to purchase seven Golden Entertainment-owned properties in Nevada for $1.16 billion on Thursday. That move includes The Strat Hotel, Casino & Tower on the Las Vegas Strip and other Nevada properties.

As a part of the deal, VICI will lease the properties back to Golden founder and CEO Blake Sartini, who is acquiring the company and taking it private. The deal not only expands their presence on the North end of the Strip but also marks a step into smaller local casino properties as well.

VICI Seeks Foothold in Las Vegas Local Market

Along with The Strat, the other Las Vegas properties involved in the sale include Arizona Charlie’s Decatur and Arizona Charlie’s Boulder, both of which cater to the local market in Las Vegas. The deal also gives VICI ownership of the Aquarius Casino Resort and Edgewater Casino Resort in Laughlin, and the Pahrump Nugget Hotel & Casino and Lakeside RVP Park & Casino in Pahrump. 

VICI will assume as much as $426 million in debt from Golden in the transaction. It will also collect $87 million in annual rent from Sartini for the properties, with the rent scheduled to increase by 2% each year starting in the third year of the lease.

“VICI has sought exposure to the attractive Las Vegas Locals gaming market since our inception, and we are thrilled to acquire seven new assets across the state of Nevada with sticky, durable customer bases,” VICI President and COO John Payne said in a statement. “We look forward to initiating a partnership with Golden, having long admired the ability of Blake and the Golden team to operate within the various dynamics of the Nevada gaming market.”

Golden Sees Growth Potential as Private Firm

In the press release announcing the deal, VICI cited the main reasons for the purchase being tenant diversification, the exposure to Las Vegas locals, and Golden Entertainment’s strong management team. Sartini also noted the growth potential for Golden as a company that they see in the arrangement. 

“At Golden, we have continued to refine our business in recent years to focus on our core casino and tavern operations in Nevada, and we believe this transaction is the right next step in our evolution to a private company,” Blake Sartini said in a statement. “After many years of watching VICI’s success, we are excited to partner with VICI on this important strategic transaction and to explore potential opportunities to grow our company.”

While VICI doesn’t operate any casinos itself, it owns properties where some of the most prestigious operators in the gaming industry are based. The company has a huge hand in the Las Vegas market, owning properties like Caesars Palace, MGM Grand, Luxor, The Venetian, and Mandalay Bay, along with other properties in the United States and Canada.