VICI Properties Acquires The STRAT and Six Other Casinos for Over $1.16 Billion on Las Vegas Strip

Las Vegas, NV – Investment real estate giant VICI Properties, already a key player on the Las Vegas Strip with holdings like Mandalay Bay, The Venetian, Caesars Palace, MGM Grand, and Luxor, is poised to expand its footprint in southern Nevada with a monumental deal valued at over $1.16 billion.

On Thursday, November 6, VICI Properties announced its acquisition of The STRAT along with six other casino properties from Golden Entertainment in a sale-leaseback transaction. As part of this agreement, the properties will be leased back to Golden’s founder, Blake Sartini, who will simultaneously take his company private.

Deal Details

Under the terms of the sale-leaseback agreement, VICI will purchase the real estate of a portfolio encompassing seven properties, including The STRAT, two Arizona Charlie’s locations in Las Vegas, the Aquarius and Edgewater resorts in Laughlin, the Pahrump Nugget, and the Lakeside Casino & RV Park in Pahrump.

The initial annual rent to be paid by Sartini’s entity for this seven-property portfolio will total $87 million, with annual increases of 2% starting in the third year of the lease.

Additionally, VICI is set to assume and pay up to $426 million of Golden Entertainment’s debt. The transaction remains contingent upon shareholder and regulatory approvals, with expectations for completion by mid-2026.

Golden Entertainment, the parent company of The STRAT and the PT’s Taverns chain in Las Vegas, announced it will transition to a private company as a result of the sale. Golden shareholders will receive a total consideration that includes a fixed exchange ratio of 0.902 shares of VICI and a cash distribution of $2.75 per Golden share. Following the news, Golden Entertainment’s shares surged nearly 39%, reaching a price of $29.78 at market open on Thursday.

Expansion of VICI Properties in Las Vegas

VICI, headquartered in New York and launched in 2017 as a division of Caesars, is the largest real estate owner on the famed Las Vegas casino corridor and has significantly expanded its presence through high-value transactions.

The company focuses on owning the land and buildings, collecting rent from the businesses operating the resorts, including MGM Resorts International and Caesars Entertainment. Notable transactions include:

• Acquisition of MGM Resorts’ real estate in a deal valued at $17.2 billion.
• Purchase of The Venetian, Palazzo, and the former Sands Expo and Convention Center from Las Vegas Sands Corp. for $4 billion in cash as part of a $6.25 billion transaction (both deals closed in 2022).
• Acquisition of Blackstone’s interest in the MGM Grand and Mandalay Bay properties in 2023 for nearly $1.3 billion in cash and assuming about $1.5 billion in debt.
• Provision of up to $350 million in late 2022 (part of a $2.2 billion construction loan from multiple lenders) to finance the completion of Fontainebleau Las Vegas, which opened its doors in late 2023.