Vici Properties, a publicly traded real estate investment trust focused on gaming and entertainment properties, has a deal to acquire seven Nevada casino properties from Golden Entertainment for $1.16 billion in a sale-leaseback agreement.
The deal would strengthen Vici's foothold in Las Vegas' gaming real estate market and establish its entry into the lucrative local gaming segment, which primarily targets residents rather than tourists.
The Golden Entertainment portfolio includes the Strat Hotel, Casino & Tower on the North Las Vegas Strip; Arizona Charlie's Decatur; Arizona Charlie's Boulder; Aquarius Casino Resort; Edgewater Casino Resort; Pahrump Nugget Hotel & Casino and Lakeside RV Park & Casino. The properties total roughly 362,000 square feet of casino space, more than 6,000 hotel rooms, 4,306 slot machines and 78 table games.
The Strat is the premier casino resort in the portfolio, known for a 1,149-foot structure that's the tallest freestanding observation tower in the United States, according to Golden Entertainment. The Strat offers thrill rides, an 80,000-square-foot casino, 10 restaurants, two rooftop pools, a fitness center, retail shops and entertainment facilities.
The proposed deal arrives as Las Vegas' hotel performance has cooled following three years of strong post-pandemic recovery, according to CoStar analysis. Revenue per available room declined 11% year to date through August compared to 2024. Group demand has dropped sharply, though transient, or short-term, travel remains slightly positive. The market faces tough comparisons against 2024's historic highs, including a record-breaking Super Bowl weekend.
Golden Entertainment reported third-quarter revenues of $154.8 million, down from $161.2 million in the third quarter of 2024. Net loss for the third quarter was $4.7 million, compared to net income of $5.2 million for the same period a year earlier.
Golden Entertainment attributed the revenue decline and quarterly loss to lower hotel occupancy rates at its casino properties during the year.
Vici's rationale
Vici structured the deal as a triple-net master lease with an initial annual rent of $87 million, representing a 7.5% acquisition capitalization rate. The 30-year lease includes four 5-year renewal options. Rent escalates 2% annually beginning in the third year. Blake L. Sartini, Golden Entertainment's chairman and CEO, will control the newly formed operating entity through the lease.
In connection with the transaction, Vici would assume and immediately retire Golden Entertainment's outstanding $426 million of debt.
Vici said it is pursuing the acquisition for multiple strategic reasons. The company favors diversifying its Nevada real estate holdings in a jurisdiction known for stable regulation and low tax rates. The deal also requires no external financing, as Vici plans to fund the transaction using cash on hand, net proceeds from forward sale agreements and its revolving credit facility.
"Vici has sought exposure to the attractive Las Vegas locals gaming market since our inception," John Payne, Vici's president and chief operating officer, said in announcing the deal.
Upon closing, Golden Entertainment's operating company would become Vici's fifth-largest tenant by annualized cash rent and 15th tenant overall, furthering the REIT's tenant diversification strategy.
The transaction requires approval from a majority of Golden Entertainment's stockholders. Sartini, his son Blake Sartini II, and affiliated trusts, holding about 25% of the firm's voting power, have signed an agreement supporting the deal. The companies expect to complete it in mid-2026.