Pure Casino Entertainment Greenlit to Acquire Gamehost Casinos

• Pure will acquire 100% of Gamehost’s outstanding common shares for $13.65 per share in cash, representing a significant premium for shareholders
• The acquisition adds three major properties (including Calgary’s Deerfoot Inn & Casino), expanding Pure’s land-based Alberta portfolio to seven casinos
• Driven by parent company Indigenous Gaming Partners, the deal marks a major step forward for First Nations-backed ownership and strategic expansion across Western Canada’s entertainment sector

Pure Casino Entertainment has cleared its final hurdle to acquire multi-casino operator Gamehost, expanding its portfolio of land-based casinos in Alberta to seven.

Pure is privately held by Indigenous Gaming Partners Inc. (IGP), a gaming partnership between five Nova Scotia First Nations and Sonco Gaming Inc.

The First Nations group already owns four land-based Alberta casinos via its takeover of Pure last year.

Gamehost and Pure first announced their agreement March 30.  At the time, Pure revealed it would be acquiring all of the issued and outstanding common shares of Gamehost for $13.65 in cash per share, through a subsidiary.

Gamehost’s shareholders approved the transaction on June 11, with approval also from the Court of King’s Bench of Alberta, reported first in Canadian Gaming Business. The deal is expected to close later this month.

The Gamehost casinos that Pure has acquired are the Great Northern Casino facility in Grand Prairie, the Rivers Casino and Entertainment Centre, located in Fort McMurray, and Deerfoot Inn & Casino in Calgary.

The company also acquired two hotels in the deal, both in Grand Prairie.

Rise of First Nation Casino Ownership

Under the deal Pure will own Gamehost casino’s operating assets, while VICI Properties will own the real estate through a master lease agreement with Pure.

Rivers Casino is already a leased property as the real estate is currently owned by a third party. VICI did not acquire the real estate of that asset as part of this transaction, but Pure did acquire the operations, said a spokesperson from VICI Properties.

The Gamehost news is the latest in a series of deals across Western Canada where First Nations are acquiring major casinos and gaming companies, highlighted as well by a series of casino deals in British Columbia, with Great Canadian Entertainment selling off properties to First Nations groups.

Key Economic Strategy

“First Nations are in the lead—and need to be in the lead—when it comes to ownership and partnerships in gaming,” said Chief Paul Rice of the Mohawk Council of Kahnawàke. Rice was speaking during a panel discussion on the rise of First Nations ownership in Western Canada’s gaming sector at SBC Summit Canada.

“I think that’s going to benefit everybody,” Rice continued. “Not just our people, but people in the region and the broader Canadian population as well. If you want to see the Canadian economy recover from the better part of 10 years of stagnant growth, gaming is a huge part of that, and partnering with First Nations is a huge part of that.

“I think that’s a really key economic strategy that’s not being pushed as hard as it could be. We can act as nations to push this forward as hard as necessary for the benefit of our people.”

Diversification of Casino Ownership

Michael Peters, CEO of Glooscap Ventures—the corporate and economic development arm of Glooscap First Nation in Nova Scotia, and one of the five First Nations backing Indigenous Gaming Partners (IGP)—noted that IGP is already looking toward the digital frontier. During the panel, Peters shared that IGP plans to expand into online gaming in Alberta, capitalizing on the province’s newly regulated market.

“It makes us stronger when we’re together and united in what we’re trying to do,” Peters said. “We’re trying to diversify our economic development and resources to become more independent at home. One of the primary ways to do that is by becoming financially independent from the government.

“By diversifying not only by industry but also by geography, we can build that independence. That’s why we started looking at gaming opportunities beyond Nova Scotia and across the country. Alberta represents a fantastic market for that growth,” he added.