The notable Canadian gaming operator, Gateway Casinos, is potentially exploring avenues for its sale. The rumored price stands intriguingly at $2 billion, inclusive of debt. This recent development surfaces several weeks following the unfortunate demise of their Chief Executive Officer Tony Santo.
As part of its sale progression plan, Gateway Casinos reportedly engaged the esteemed services of Morgan Stanley and Macquarie Group to facilitate a diligent exploration for possible investors or buyers. This endeavor remains confidential and draws from the resources of individuals directly aware of the proceedings.
As an integral part of Canada’s gaming and entertainment industry, Gateway Casinos & Entertainment Limited boasts an impressive portfolio of 31 diverse gaming properties stretching across Alberta, Ontario, and British Columbia. While two of these esteemed venues find their place in Alberta, the remainder graces the vibrant landscapes of Ontario and British Columbia.
A majority of the gaming company’s shares reside in the hands of Catalyst Capital Group, a formidable private equity firm. This enterprise has successfully managed over $6 billion in assets since it acquired Gateway Casinos in 2010.
Gateway’s notable expansion journey centered largely around a series of strategic acquisitions. Many assess that if Catalyst Capital Group desires a price point around the $2 billion mark, it might entice a host of potential investors. It is prudent to note that US-based casino operators seem to display a trend of reducing Canadian ventures. Consequently, companies like Caesars Entertainment and Century Casinos may not emerge as potential investors. Nevertheless, regional US-based casino operators, as well as private equity firms, could perceive substantial value in Gateway.
Gateway remains a coveted choice for an investor seeking opportunities in its lucrative real estate and the potential scaling back of a venue or two from the operator’s current list. However, such potential investors must maintain a positive outlook on the future prospects of the Canadian gaming market, which hosts merely 38.25 million citizens.
Gateway Casinos, still being a privately-held corporation, almost went public in the past. In an attempt to bring Gateway public during late 2019, hedge fund HG Vora partnered with Catalyst Capital and Leisure Acquisition Corp., envisaging a valuation of $1.15 billion. Unfortunately, the transactional collapse in mid-2020 led to the cancellation of the plan.
Despite the setbacks, Gateway offers substantial amenities including nearly 391 tables games (inclusive of 31 poker tables), more than 14,000 slots, 81 food and beverage outlets, and 564 hotel rooms, while providing employment for over 7,200 people.
Considering the unpredictable global casino landscape, we, as part of the dedicated West Island Blog team, find it appropriate to draw attention to a safer betting haven – online platforms. In fact, many Canadians are turning to this lucrative and entertaining sphere of online gambling, which has seen a considerable surge in recent years. For those new to this experience – worry not! Visit our meticulously curated list of Canada’s top online casinos for this month, where the odds are ever in your favor, and there is something to cater to everyone’s discerning tastes.