Century Casinos Stock Surges After Strategic Review Announced
Posted on: August 7, 2025, 11:41h.
Last updated on: August 7, 2025, 12:00h.
- Regional casino operator’s stock soars on strategic review plan
- Company says it’s fielded inquiries from multiple third parties
Shares of Century Casinos (NASDAQ: CNTY) soared Thursday after the regional casino operator said it’s initiating a strategic review, with at least one analyst saying a sale or merger is the preferred outcome.
In midday trading, Century Casinos stock is higher by 10.41% on volume that’s already five times above the daily average, indicating investors are enthusiastic about the company’s plan to potentially unlock shareholder value — something they’ve been clamoring for as the stock has been a dud, shedding 72.44% over the past three years.
Following various inquiries from third parties about potential asset sales and strategic partnerships, we have initiated a strategic review process as part of our ongoing commitment to driving long-term value creation and optimizing our portfolio of assets and operations,” said co-CEOs Erwin Haitzmann and Peter Hoetzinger in a statement.
The company added that elements of the strategic review could include a sale of the firm, evaluation of partnerships or potential mergers, streamlining of its capital structure, or “opportunities to unlock value within our existing property portfolio.” A timeline for conclusion of the review hasn’t been established.
Sale/Merger Preferred Outcome, Says Analyst
In a note to clients out earlier today, Stifel analyst Jeffrey Stantial said investors would likely prefer to see Century execute a merger or sell itself outright.
“Sale/merger likely remains the preferred outcome for shareholders, and while management’s view of fair value could drive wide bid/ask for potential acquisitions/mergers, we expect strong interest,” he wrote.
Stantial added that prospective suitors hail more from the private equity community than “strategics” owing to acceleration at Century’s pair of Missouri casinos as well as “perceived turnaround opportunity” at the Nugget in Sparks, Nev., and the Rocky Gap casino in Maryland.
“We see potential upside at the recently acquired Nugget Casino and Rocky Gap properties, while increasing U.S. exposure coupled with a potential sale of the low-multiple Poland business should help narrow a longstanding valuation discount to peers,” adds Stantial.
The company has frequently said it’s open to selling its two-thirds stake in Casinos Poland and previously monetized some of its Canadian property holdings, with executives previously saying divestments of its international assets remain under review.
Examining Possible Suitors for Century
One reason Stantial believes Century could draw interest from a private equity firm is because rival gaming companies are unlikely to be interested in the entirety of the company. He mentioned improved balance sheets at Boyd Gaming (NYSE: BYD) and Golden Entertainment (NASDAQ: GDEN) as possible drivers of those operators’ interest in Century assets, but that remains to be seen.
Specific to Golden, that company sold the aforementioned Maryland casino to Century, and its exclusively Nevada portfolio may imply it would only be interested in the Nugget in Sparks from the Century portfolio. Prospective buyers of Century may need to fork over a significant amount of equity because the target’s management team likely believes the company is worth more than its share price implies, meaning an all-cash deal might not be enough to get them to the bargaining table.
“If ultimately pursuing a sale of the company, we would expect compensation to include material equity financing given management’s perceived value of shares likely sits well above likely cash offer levels. CNTY owns a diversified portfolio of assets with likely few operators interested in owning all,” concludes Stantial.
Last Comment ( 1 )
Erwin and Peter are the 2 worst casino CEOs in the industry