Published on: November 6, 2025, 11:55 AM.
Updated on: November 6, 2025, 12:21 PM.
- CEO Blake Sartini is acquiring the Strat operator, placing its valuation at $30 per share
- Golden has announced a $1.16 billion sale-leaseback arrangement with VICI Properties for its seven casinos in Nevada
- This news surfaced simultaneously with an investor advocating for such a transaction
Shares of Golden Entertainment (NASDAQ: GDEN) surged on Thursday following CEO Blake Sartini’s announcement of his intention to take the Strat operator private and the $1.16 billion sale-leaseback agreement with VICI Properties (NYSE: VICI).
Previously facing challenges, Golden’s stock has increased by over 35%, with trading volume more than nine times its daily average during midday trading following the announcement. Sartini’s proposal to take the company private values it at $30 per share, representing a 41% premium compared to its closing price on November 5.
Shareholders of Golden will receive a fixed exchange ratio of 0.902 shares of VICI common stock for the sale of seven casino real estate assets, along with a cash distribution from Blake Sartini of $2.75 for each share held at the closure of the agreement,” states a release from the Las Vegas-based gaming company.
This transaction, anticipated to finalize in mid-next year, ends months of speculation regarding Golden’s potential role in consolidation within the casino industry, particularly concerning the real estate of the Strat and nine unused acres near the off-Strip venue.
VICI Expands Its Nevada Portfolio with Golden Entertainment
As the largest owner of gaming real estate, VICI Properties is entering into a sale-leaseback agreement with a newly established entity controlled by Sartini, enabling the REIT to acquire the real estate assets of Golden’s seven casinos in Nevada.
The gaming venues include the Strat, Arizona Charlie’s Decatur, and Arizona Charlie’s Boulder in the Las Vegas Locals market; Aquarius Casino Resort and Edgewater Casino Resort in Laughlin, NV; along with Pahrump Nugget Hotel & Casino and Lakeside RV Park & Casino in Pahrump, NV. This deal significantly broadens VICI’s footprint beyond just Las Vegas.
Golden’s master lease with VICI spans 30 years, starting with an initial annual rent of $87 million at a cap rate of 7.5%, featuring a 2% inflation-linked escalator beginning in the third year. Additionally, there are four five-year tenant renewal options included. For VICI, the agreement diversifies its holdings, diminishing reliance on properties located on the Strip.
“This transaction also gives VICI access to the Las Vegas Locals market, previously recognized as the second largest gaming market in the U.S. by gross gaming revenue in 2024,” the REIT stated. “The Locals market has been a target for VICI due to its steady growth, strong demographic trends, and high entry barriers.”
Golden’s Strategic Move to Transition Private
The announcement of Sartini taking the Arizona Charlie’s operator private came shortly after GAMCO Investors, led by Mario Gabelli, took what some analysts viewed as an activist stake in the business. It’s uncertain whether Gabelli played a direct role in this transaction; however, his investment in Golden has yielded substantial returns.
Adding to the intrigue, on the very day the go-private proposal was disclosed, Golden’s board received a letter from Everbay Capital, a New York-based investment manager, suggesting the company sell its real estate to maximize shareholder value, potentially realizing $42 per share. Everbay acknowledged some of the successful initiatives by Golden management in recent years but highlighted that those actions failed to produce significant intrinsic value, as reflected by the stock’s poor performance.
“Golden’s shareholders experienced total shareholder returns of (27.1%) and (46.3%) over the past 1-year and 3-years, respectively, despite the overall strong performance of equity markets,” the asset manager pointed out. “For instance, the Russell 2000 index has returned 10.8% and 40.4% over the same periods. In contrast, peers in the land-based gaming sector that own their casino real estate recorded average returns of 14.5% and 41.1% respectively.”