Maverick CEO wants Washington to legalize sports betting as company buys 19th card room

August 22, 2019 7:21 PM
  • Howard Stutz, CDC Gaming Reports
August 22, 2019 7:21 PM
  • Howard Stutz, CDC Gaming Reports

Las Vegas-based Maverick Gaming said on Thursday that it was acquiring a Seattle-area casino – the company’s second such deal announced this week.

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Meanwhile, the company’s CEO called on the state to legalize sports wagering.

Maverick said it was acquiring the Wizards Casino in Burien, a suburb of Seattle, for an undisclosed price. The deal, following Monday’s announced purchase of five properties, would give Maverick ownership of 19 casinos and card rooms in Washington, covering nearly 300 table games.

Both deals are subject to the approval of Washington gaming regulators.

“We continue our commitment to the state of Washington and the card room industry,” Maverick CEO Eric Persson said in a statement. The privately-held Maverick will fund the transaction with cash on hand and debt financing from HG Vora Capital Management, a private investment firm.

Persson also called on Washington lawmakers to legalize sports wagering, which he said could generate “in excess of $50 million annually” in tax revenues for the state.

States have been actively adding regulated sports wagering to casinos and racetracks following the repeal of the federal ban on the activity by the U.S. Supreme Court 15 months ago. Indiana will become the 12th state to operate legal sports betting on Sept. 1.

According to ESPN, Washington saw two pieces of sports betting legislation introduced by lawmakers in February, but no action was taken. One bill would authorize sports wagering on a limited basis by restricting it to tribal casinos. The other proposed law would permit sports betting only on-site at licensed horse racing tracks. Neither bill would permit mobile sports wagering in the state.

Persson said the Maverick expects to announce the acquisition of four additional Washington cards rooms next month.

“As our footprint grows in Washington, we are very interested in helping the state see the potential tax revenue sports wagering can generate for Washingtonians,” Persson said. “We believe Maverick’s geographic diversity, coupled with our sports betting expertise, make the Maverick properties natural partners with the state in sports wagering.”

Earlier this year, Maverick completed two previously announced deals to acquire three card room casinos from Great American Gaming Corp., a U.S. affiliate of the Great Canadian Gaming Corp., for $56 million, and the nine Washington card rooms owned by Nevada Gold & Casinos in all-stock transaction.

The majority of the card rooms are located in communities surrounding Seattle, the state’s largest city.

According to a document on the website of the Washington State Gambling Commission, the state had 61 house-banked card rooms at the end of the 2018 fiscal year, which totaled $256.3 million in gross gaming revenues.

Washington card rooms may have up to 15 tables and offer blackjack, Caribbean stud poker, Let it Ride, baccarat, and most other card games once approved by state gaming regulators.

Persson and Justin Beltram founded Maverick Gaming in 2017.

The company owns the Wendover Nugget and Red Garter hotels in Wendover, Nevada, and the Red Lion Casino, Gold Country Casino, and High Desert Inn, all located in Elko, Nevada. The Nevada properties total 1,200 hotel rooms and 1,500 slot machines.

Persson said the company hopes to announce the acquisition of another casino in Nevada next month.

Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.