The Nevada Gaming Control Board has put forward a proposal for J&J Ventures Gaming to acquire the Nevada distributed gaming division of Golden Entertainment. The acquisition is said to be for $213.5 million, with $34 million allocated as purchase cash. The Nevada Gaming Commission is expected to be informed about this proposal on December 21, 2023.
Just last month, in September, J&J Ventures Gaming acquired the Montana-based distributed gaming division of Golden Entertainment for $109 million, in addition to $5 million in purchase cash. As part of this deal, a five-year agreement is being inked between Golden Entertainment and J&J Ventures Gaming, where the latter will offer financial support for the gambling division of Golden’s Nevada-branded taverns.
J&J Gaming is a prominent player in distributed gaming operations across several states, including Illinois. The majority of J&J stock is owned by Oaktree Capital Management, a Los Angeles-based private equity firm. Recently, they also acquired the Virgin River Hotel and Casino and Casablanca Resort in Mesquite.
According to Matthew Wilson, the managing director of Oaktree, they made investments in J&J in 2019 and subsequently acquired thirteen more properties, resulting in a revenue increase of 3.5 times. The equity portion of the initial capital investment is set to increase from $155 million to $300 million, as they aim to expand their reach to more states beyond Illinois and Nevada.
Wilson believes that this acquisition will position the company at the top in the US market, with approximately 25,000 terminals spread across 3,500 addresses in five states. They are planning to invest more money to accelerate their expansion, as well as connect their Nevada setup with the larger J&J platform and invest in prospective solutions.
Jordan Kruse, Managing Director of Oaktree, has also shared that they will integrate their Nevada operations with the broader J&J platform and focus on investing in potential properties to drive further growth.
Blake Sartini, CEO and Chairman of Golden Entertainment, mentioned that the company operates a wide range of gambling venues, including a Strip casino, local casinos, distribution pubs, and the route segment. Their main focus for now will be to expand the tavern collection while maintaining their status as route associates.