• Thu. Sep 16th, 2021

Affinity Gaming Merging with New SPAC, Seeks Extra On line casino, Leisure Offers


Jan 17, 2021

Posted on: January 16, 2021, 05:20h. 
Final up to date on: January 16, 2021, 05:22h.

Todd Shriber Learn Extra

Affinity Gaming, the proprietor of the Silver Sevens On line casino in Las Vegas, is merging with a newly shaped particular function acquisition firm (SPAC) and plans to pursue addition consolidation alternatives following that marriage.

Silver Sevens On line casino in Las Vegas. Proprietor Affinity Gaming is merging with a SPAC to pursue extra offers. (Picture: Las Vegas Evaluate-Journal)

In a Kind S-1 submitting with the Securities and Alternate Fee (SEC) launched Friday, Gaming & Hospitality Acquisition Corp. revealed plans for an preliminary public providing (IPO) elevating $150 million to $172.5 million. The brand new SPAC stated within the S-1 it’s preliminary enterprise mixture will likely be with Affinity, however the exercise received’t finish there.

We search to amass a number of companies with property which might be essentially sound but are underperforming their potential,” in keeping with the S-1. “We’ll search for alternatives the place we are able to leverage our vital expertise and experience to assist a number of companies obtain long-term strategic and operational excellence.”

As is par for the course with SPAC IPO filings, the Gaming & Hospitality doc signifies the blank-check agency hasn’t but recognized a merger associate past Affinity. The corporate says its seek for targets received’t be confined by geography and that it’s specializing in gaming and hospitality property.
Regional Focus Probably
With regional gaming venues proving sturdy relative to vacation spot market counterparts in opposition to the coronavirus backdrop, Gaming & Hospitality may make {that a} focus of its merger search.
“Particularly, we imagine there’s a sturdy addressable market in regional and distributed gaming. Regional gaming is a logical market given the potential synergies with the Affinity Gaming platform,” in keeping with the SEC submitting.
Along with Silver Sevens, Affinity owns Buffalo Invoice’s, Rail Metropolis On line casino and Primm Valley Resort & On line casino in Nevada in addition to the Lakeside Resort On line casino in Iowa and the Mark Twain On line casino and St. Jo Frontier On line casino in Missouri.

The blank-check outfit additionally notes offers within the distributed gaming, gaming gear, on-line casinos and sports activities betting industries are doable. Gaming & Hospitality sees a good setting for consolidation owing to the coronavirus pandemic.

“The market dislocation ensuing from the COVID-19 pandemic, along with a fragmented market with few consolidators, will present a broad vary of acquisition alternatives,” the SPAC stated within the S-1.
No Stopping SPAC Fever
After taking the funding group by storm final yr, blank-check firms are extending that momentum in 2021. The gaming trade stays hospitable territory for each confirmed offers and SPAC hypothesis.
Thus far within the new yr, 4 SPAC mergers closed throughout varied industries closed, in keeping with SPAC Monitor information. As of Jan. 9, there have been 27 blank-check IPOs that raised a mixed $6.6 billion. That providing quantity is probably going approaching 40 or extra right this moment.
Along with its Nevada, Iowa and Missouri permits, Affinity has a license to function in Florida and beforehand held licenses in eight states together with Colorado, New Jersey, Pennsylvania, Ohio, Mississippi, Indiana, Louisiana and Arizona.
“Potential goal firms who’re licensed will probably view our present and former licensure favorably when in search of to transact because it probably reduces transaction execution danger,” in keeping with the S-1.

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