Gateway Casinos Explores Strategic Options Including Sale
Author: Kris Olson Kris Olson, Expert Casino Reviewer & Journalist at CasinoRIX
Page Last Updated: October 31, 2023, 11:03 AM EET

Gateway Casinos Explores Strategic Options Including Sale

Gateway Casinos turned to the services of Morgan Stanley and Macquarie Group Ltd, – well-known financial institutions.

One of Canada’s top gaming companies, Gateway Casinos & Entertainment Ltd., is presently assessing its strategic options, taking into account a possible sale or other options, according to people familiar with the situation. The company, which has 31 gaming locations spread across British Columbia, Ontario, and Alberta, is actively pursuing an appraisal of around $2 billion, plus a significant amount of debt.

Gateway Casinos considers Morgan Stanley and Macquarie investors

Gateway Casinos, based in the Vancouver suburb of Burnaby, has sought the help of financial giants Morgan Stanley and Macquarie Group Ltd. to identify suitable investors or acquirers while maintaining anonymity during these private discussions, according to Bloomberg. The casino, which recently marked its 30th anniversary, has seen substantial growth over the years through strategic acquisitions and internal expansions.

While Catalyst Capital Group Inc. owns a great deal of Gateway Casinos, the notion of a prospective sale has sparked the interest of numerous stakeholders in the gambling sector. Analysts believe possible suitors might come from private equity or regional casino operators based in the United States. However, several US-based casino titans, including Caesars Entertainment and Century Casinos, may be hesitant to increase their foothold in the Canadian market at this point.

Gateway Casinos thrives in the face of Troubles

Nearly three years after a proposed IPO and merger with a SPAC failed in 2020, Gateway is now investigating strategic alternatives. Even with its past failures, the company—which employs over 7,200 people and provides a wide range of entertainment options—remains a compelling investment opportunity for those interested in the Canadian gaming business.

Industry insiders advise prospective purchasers to have high hopes for the future of Canadian gaming, given that the nation has a population lesser than California. With 391 table games, including 31 poker tables, 14,288 slot machines, 81 food and beverage outlets, and 564 hotel rooms, this gaming giant offers customers a wide range of entertainment options.

This year was very turbulent for the organization since Tony Santo, the director and visionary CEO of Gateway Casinos, passed away suddenly on August 17, 2023. Santo joined Gateway in 2013 and was instrumental in its expansion from a tiny regional gaming enterprise to becoming one of Canada’s biggest gambling operators. A ransomware attack that crippled Gateway Casinos in April also forced the company to temporarily close its casinos in Ontario to improve data protection.

Did you enjoy the article? Share it on social media:

Industry

La Française des Jeux (FDJ) Has Offered $2.67BN to Acquire Kindred Group

Gambling empire Kindred Group could go under new ownership. Recently, it was reported that La Francaise de Jeux submitted a $2.67 bn offer to acquire the entire share capital of the popular online gambling operator.

Casino Licenses: Everything You Need To Know

From casino operators to games providers and players whose love for gambling keeps the business rolling, every segment plays a critical role in ensuring the success of iGaming.

London Welcomes ICE 2024, Gaming Titans

The International Casino Exhibition (ICE) is getting ready for its big show in 2024, and all eyes are on ExCeL London. ICE 2024 is projected to be the industry's most prominent networking, business, and educational event, with a global community of over 45,000 trailblazers.

iGaming Ontario Seeks Strategic Partnership for the Development of a Centralized Self-Exclusion System

iGaming Ontario, the authoritative body overseeing online gambling in the province, is poised to issue Requests for Proposals (RFP) for the establishment of an advanced self-exclusion infrastructure for the broader Canadian gaming landscape.

Curacao Board Opens Portal for Gaming License Registrations

Effective immediately, applicants and sub-license holders can now register their accounts via Curacao’s Gaming Control Board’s application portal.

SiGMA 2023: Where Innovation and Entertainment Collide

SiGMA Europe is an annual conference that gathers thoughtful and innovative participants across the iGaming industry. SiGMA is an acronym for Summit of iGaming Malta which is set to break records with lots of fun, networking, and educative activities that are worth experiencing.

Ontario Gambling License: A Look at the Latest Trends in the Market Specifics

After the Ontario gaming industry was regulated more than a year ago, various gambling enterprises have all changed to fit the market...

Introducing CasinoRIX: Your Trusted Partner for Online Gambling in Canada and Ontario

Casino enthusiasts, get ready to embark on an extraordinary gaming journey as CasinoRIX, the ultimate destination for online gambling, launches in Canada and Ontario. With a focus on keeping gambling straightforward and making it personal, CasinoRIX is ready to be the best spot for gamblers in the region.