The Nevada Gaming Control Board recently gave the green light for an Illinois company to acquire Golden Entertainment’s distributive gaming assets, according to a Las Vegas Review-Journal local report.
Oak Tree Capital Management representatives told the Control Board that if the Nevada Gaming Commission approves its request for licensing by December 21, the company “would oversee 25,000 slot machines at 3,500 locations in five states.”
Oak Tree Capital is the parent company of Effingham, Illinois’ J&J Ventures Gaming. Final licensing approval would make the company the largest US slot route operator, according to the local report.
Distributive gaming includes slot machines that are installed in taverns, restaurants and bars, as well as in grocery and convenience stores.
Earlier this spring, Golden Entertainment signed a definitive agreement with J&J Ventures Gaming to “divest its distributed gaming operations” in the states of Nevada and Montana. The two agreed to the transaction for an aggregate cash consideration of $322.5m, along with another $39m of estimated purchased cash once the deal is completed.
In a breakdown by state, the group will buy Golden’s Nevada distributed gaming operations for a total of $213.5m, plus another estimated $34m of purchased cash. Operations in Montana would be sold for $109m, along with an estimated $5m of purchased cash. All transactions were subject to “customary working capital adjustments.”
Under the terms of the agreement, J&J Ventures will support Golden’s branded Nevada tavern destinations’ gaming operations at “financial terms consistent with the Company’s past practice.”
