Full House Resorts (NASDAQ: FLL) said today it is selling Stockman’s Casino in Fallon, Nevada to Clarity Game LLC for $9.2 million.
The deal includes the land, building, and select other operating assets. It’s a two-pronged deal in which the buyer will pay $7 million for the real estate assets and $2 million for the operating rights. The property part of the transaction is expected to close later this month. After that, Full House will pay monthly rent of $50,000 to Clarity until the sale of the operating rights is finalized. When that part of the deal is completed, all operating responsibilities will be transferred to Clarity.
Stockman’s Casino has more than 10,000 square feet of gaming space and two restaurants. It’s one of three casinos in Fallon — a town of about 9,300 in Churchill County. The other two are Bonanza Casino and the Fallon Nugget.
Sale Part of Full House Transition
The sale of Stockman’s Casino is part of Full House Resorts’ transition — one that’s seeing the regional gaming operator focus on newer, glitzier venues.
As we have continued to grow in size, we find it prudent to focus on our larger properties in our portfolio, including our newly-opened Chamonix and American Place casinos. We are proud of our transformation of Stockman’s Casino over the years,” said Full House CEO Daniel Lee in a statement.
Chamonix is the operator’s newest property in Cripple Creek, Colo. It opened last December and is widely viewed as the most upscale gaming venue in that town. American Place refers to the Full House venue in Waukegan, Ill. where the operator currently runs a temporary version of the casino while it works through some legal challenges brought by rival bidders.
Analysts believe that alone, either the permanent version of American Place or Chamonix will gross more than previously existing Full House portfolio combined, underscoring why the operator would indulge a small sale such as the divestment of Stockman’s.
Including American Place, Chamonix, and Stockman’s, Full House runs seven gaming venues. The others are Bronco Billy’s in Cripple Creek, the Silver Slipper Casino and Hotel in Hancock County, Miss., Rising Star Casino Resort in Rising Sun, In. and the Grand Lodge Casino in Lake Tahoe, Nevada.
Clarity, Full House Neighbors in Cripple Creek
Prior to the announcement pertaining to Stockman’s, Clarity Game and Full House were sort neighbors and rivals in Cripple Creek. Last December, Michael Gaughan and partners formed Rocky Mountain Gaming to acquire two casinos in the Colorado town.
Gaughn, who also owns the South Point Las Vegas, and his Rocky Mountain Gaming partners are behind privately held Clarity Game LLC.
Gaughn also owns the operating rights for the more than 1,400 gaming machines that are located inside Harry Reid International Airport.
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