Merger complete, Golden Gaming becomes publicly traded Golden Entertainment

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The PT’s at 9050 W. Post Road in Las Vegas.

Golden Gaming, a major operator of Nevada taverns, casinos and grocery store slot machines, has completed its transition from a family owned business to a publicly traded company that also runs a casino in Maryland.

The company announced today that its merger with Minnesota-based Lakes Entertainment has closed, following approvals from shareholders last week. Now known as Golden Entertainment, the combined business owns Maryland’s Rocky Gap casino, in addition to the casinos, taverns and slot machines Golden Gaming already controlled in Nevada.

The merger was approved by the Nevada Gaming Commission on July 23.

Blake Sartini, who was the CEO of Golden Gaming, is staying on as the chief executive of Golden Entertainment, which is headquartered in Las Vegas. He said the closing marked a “truly monumental and meaningful day.”

“With Golden Entertainment, we now have a national, diversified gaming company with strong assets across the country,” he said in a company statement.

When the merger was first announced in January, Golden Gaming said it would value Lakes at $9.57 per share, which was a 37 percent premium from Lakes’ closing price at the time.

The merger issued about 7.8 million shares to the Sartini family, who were the sole shareholders of Golden Gaming.

Golden Entertainment has also appointed three new members to its board of directors: Mark Lipparelli, a current state senator and former chairman of the Gaming Control Board; Robert Miodunski, the former CEO of American Gaming Systems; and Terrence Wright, the board chairman and majority owner of Westcor Land Title Insurance Co. They join existing directors Lyle Berman, Timothy Cope and Neil Sell as well as Sartini, who is the board’s chairman.

Berman, who was formerly the chairman of Lakes, said in the statement that Lakes’ cash and Maryland casino create “an exciting growth opportunity” when combined with Golden Gaming’s diverse operations.

“The combined company’s refinanced debt will provide an immediate benefit in company net income and free cash flow,” he said.

Sartini has previously said the merger creates one of the gaming industry’s strongest balance sheets. He has also suggested that the company may grow even more in the future, noting that “as a public company, we’re charged with growth.”

Golden Gaming was already preparing to enter the Montana slot machine business before the merger with Lakes. The company runs three casinos in Pahrump and 48 taverns under brands that include PT’s, Sean Patrick’s and Sierra Gold. It’s also Nevada’s largest slot machine route operator, with thousands of machines inside hundreds of grocery stores and similar spots.

Effective Tuesday, Golden Entertainment will replace Lakes on the Nasdaq under the trading symbol “GDEN.”

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