Game Types Bonuses Slots More
Online Casinos Poker Bingo Games Lotteries Sports & Racebooks Fantasy Sports Forex Betting Exchanges Spread Betting Binary Options Live Dealers
Weekly Newsletter Online Gaming News Payment Methods Gaming Software Gaming Site Owners Gaming Jurisdictions Edit Preferences Search
 
Bonuses! New games! Gossip! And all the player news you can handle. Sign up NOW!

Related Links

Alliance Gaming Sells Rail City Casino

8 Dec 2003

LAS VEGAS – (Press Release) -- Alliance Gaming Corp. (NYSE: AGI) announced today that it has signed a definitive agreement for the sale of 100% of the stock of Rail City Casino located in Sparks, Nev., to The Sands Regent (Nasdaq: SNDS).

The total consideration, based upon a multiple of trailing twelve months EBITDA, is expected to be approximately $38.0 million, consisting of $35 million in cash and $3.0 million of subordinated debt provided by Alliance Gaming. Following normal regulatory review process, the transaction is expected to close in the first half of 2004.

"The sale of Rail City is consistent with our strategy of divesting non- core assets when both the timing and the selling price multiple line up to provide a very attractive deal for both parties," said Robert Saxton, Sr. Vice President and Chief Financial Officer of Alliance Gaming. "Rail City has been a remarkably productive property for us and the decision to sell it has been a difficult one. The Sands Regent in-depth knowledge and experience in the Reno-area market, we feel, will provide Rail City the greatest opportunity to reach its full potential."

Alliance Gaming purchased Rail City in 1990 and the current management team has guided the property to steady growth and strong profitability over the past six years even in the face of growing competition from California Native American casinos. Located just off Interstate 80 near the Reno-Sparks border, Rail City features a 16,000-square foot casino with 550 gaming machines, live table games, keno and a sportsbook. The property also features a 250-seat restaurant and a large lounge area that offers live music and televised sporting events.

"The acquisition of Rail City Casino makes a powerful statement about The Sands Regent's plans for future growth while giving us an immediate impact in the Northern Nevada locals market," said Ferenc B. Szony, President and CEO of The Sands Regent. "Our previously announced strategy to expand operations within the Reno-area market is being realized once again with this agreement. Rail City has the loyal customer base, convenient location, a great team of employees, and proximity to our other two properties that we have been looking for in selecting potential acquisitions."

Alliance Gaming announced in July 2003 that it had signed definitive agreements for the sale of its entire gaming route operations, consisting of Las Vegas-based United Coin Machine Co. (UCMC) and New Orleans-based Video Services, Inc. (VSI), as well as its Bally Wulff subsidiary. The Bally Wulff sale closed in late July 2003 and the route operations sale remains on schedule to close in early calendar 2004.

Alliance Gaming is a diversified gaming company with headquarters in Las Vegas. The Company is engaged in the design, manufacture, operation and distribution of advanced gaming devices and systems worldwide, and is the nation's largest gaming machine route operator and operates two casinos. Additional information about the Company can be found at www.alliancegaming.com .

The Sands Regent owns and operates the Sands Regency Casino and Hotel in downtown Reno, Nev., and Gold Ranch Casino and RV Resort in Verdi, Nev. The Sands Regency is an 850-room hotel and casino with 29,000 square feet of gaming space offering table games, keno, bingo and slot machines. In addition to complete amenities and on-site brand-name restaurants, the property also includes a 12,000-square-foot convention and meeting center which seats close to 1,000 people.

The Gold Ranch Casino and RV Resort is located in Verdi, 12 miles west of Reno. Gold Ranch offers approximately 300 slot machines in an 8,000-square foot casino, two restaurants, two bars, a 105-space RV park, a California lottery station, an ARCO gas station and a convenience store.

 
About Us | Advertising | Publications | Land Casinos