Golden Entertainment Inc., the parent company of the Strat, Arizona Charlie’s and PT’s chain of neighborhood pubs, is one step closer to transitioning from a public company to a private operation Wednesday following a unanimous vote by the Nevada Gaming Control Board.
Board members recommended a series of fitness, transfer and licensing measures for Golden and top executive Blake Sartini and the deregistration of Golden as a publicly traded company after a 70-minute hearing.
The Nevada Gaming Commission will consider final approval at its April 23 meeting.
At the meeting in Carson City, Sartini said Golden’s future focus is expected to continue in Southern Nevada.
Focus on Nevada
“We’re intentionally restoring in Southern Nevada,” Sartini said. “I’m a big proponent of being able to drive and visit, touch our properties on a daily basis. And when we were spread out from Maryland to Montana to Northern Nevada and Southern Nevada, that’s a burden on a management team. It’s uncomfortable for me to be an operator, which is where I first started, not being able to be on these properties every day and being able to drive your property from your home is a huge advantage.”
Sartini said he would “never say never” to expanding outside Nevada’s borders “but I think we’re pretty focused on Southern Nevada in particular and Nevada in terms of where we would continue to plant our flag in terms of growth.”
Golden is partnering with Vici Properties Inc., a real estate investment trust that serves as the landlord on the land under the properties and collects rent through a master agreement. Sartini explained that the partnership agreement allows Golden to keep rental payments constant.
Board member George Assad asked Sartini to evaluate the current local population and tourism market and give his take on why visitor numbers are declining while gross gaming revenue is increasing.
“There’s a dynamic happening, as you see the numbers publicly now, that fewer people are coming to Las Vegas but spending more,” he said. “There’s a bit of a disconnect there. And I think maybe the expectation is when the Strip gets a cough, the local markets catch a cold.
“I think the local market, and I’m talking specifically right now in Clark County that I’m most familiar with, is that Clark County has 3 million plus people now. It’s a very diversified, booming economy with tremendous amounts of construction, new residents moving in, commercial and retail businesses being built all the time.”
Local market resilient
He sees the local market as resilient and no longer as dependent on the Strip as it once was.
“I think there’s some residue of what’s happening on The Strip that bleeds over to locals here and there,” he said. “But overall, I’d say the local economy is not only stable, but I’d dare say consistent to strong, given what’s going on in the rest of the gaming community.”
Assad said he was happy Golden is going private and it will give the company better opportunities over time.
“As for wanting to be private, I don’t blame you,” Assad said. “I think it’s a great idea. You don’t have to deal with 10Ks, quarterly reports, Wall Street breathing down your neck, looking for a forecast as to what kind of growth and numbers you’re going to project going forward. Just put the yoke around your neck and get rid of it.”
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