US casino operator Maverick Gaming has agreed a deal to acquire the Montbleu Resort Casino & Spa in Lake Tahoe, Nevada, from Eldorado Resorts for an undisclosed sum.
The property has over 400 hotel rooms, as well as almost 600 slot machines, 30 table games, a 1,200-capacity showroom and four restaurants.
This agreement is subject to various regulatory approvals and other customary closing conditions, but both parties have said they expect the deal to close in the second half of 2020.
“With this acquisition we will increase our position in Northern Nevada to five casinos with inventory nearing 1600 hotel rooms, and over 2100 slot machines,” Maverick Gaming’s majority owner Eric Persson said.
“We see great opportunity in Northern Nevada and the Reno Tahoe market, and are actively seeking more distribution there.”
Confirmation of the purchase comes at a time when Eldorado is in the process of securing approvals for its pending acquisition of Caesars Entertainment.
Eldorado in June 2019 agreed to acquire Caesars in a deal worth $17.3bn, subject to various approvals, including clearance from certain state regulatory bodies. In recent months, Eldorado has secured approval from state regulators in Iowa, Louisiana, Mississippi, Missouri and Pennsylvania.
Both Eldorado and Caesars expect the acquisition deal to close before the end of the first half.
Speaking about the sale of the Montbleu, Eldorado chief executive Tom Reeg said: “The agreement to divest Montbleu is consistent with our continued focus on the expected closing for the Caesars transaction in the first half of 2020.”
The deal comes as Maverick prepares to fight sports legislation passed in Washington, where it operates 19 cardrooms. House Bill 2638 legalizes sports betting at tribal casinos, and is awaiting Governor Jay Inslee’s signature after passing through the state legislature.
Maverick chief executive Eric Persson told local media that he would look to have an emergency clause added to the bill, that allows it to pass without a public vote, removed. This could be followed by a campaign to raise awareness of the potential negative impact on the Washington cardroom industry.