Nevada Gold has begun the process to acquire its first casino in Nevada.
The Las Vegas-based company, which operates 10 casinos in Washington and a slot machine route in Deadwood, S.D., announced late Friday it would acquire the Club Fortune Casino in Henderson for $14.2 million in cash and 1.2 million shares of Nevada Gold’s company stock.
The transaction is expected to close next year and require approval of Nevada gaming regulators.
In a statement, Nevada Gold CEO Michael Shaunnessy said Club Fortune owner Carl Giudici would remain with the property as a consultant and shareholder.
Shaunnessy said the transaction would be financed with an expansion of Nevada Gold’s existing credit agreement.
According to the statement, Club Fortune generated $16 million in revenue and $2.4 million in cash flow last year. The property has a 25,000 square foot casino with 500 slot machines and 12 table games, including a poker room. The property at 725 S. Racetrack Road in Henderson also has a restaurant, two bars, an entertainment lounge, snack bar and gift shop.
Giudici said the sale should help Nevada Gold “establish a solid foundation for future growth and success.”
Contact reporter Howard Stutz at email@example.com or 702-477-3871. Follow @howardstutz on Twitter.