Casino News

Gateway Casinos Faces New York via Strategic Merger

Gateway Casinos & Entertainment is about to welcome its new Chief Executive Officer following the recently announced merger with Leisure Acquisition Corporation. Marc Falcone would become the Chief Executive Officer and President of the hospitality company ready to publicly trade. GTWY Holdings Limited, the parent company of Gateway Casinos, would acquire Leisure Acquisition Corp.

Making a step forward in the international hospitality market is in the cards of one of the leading Canadian casino operators. Gateway Casinos is looking forward to being listed at the New York Stock Exchange with the help of this recently announced merger. It amounts to some US$1.1 billion and marks a milestone for the Canadian hospitality and gaming corporation seeking a new challenge.

Merger with Leisure Acquisition

It could be recalled that November 2018 saw the casino operator list for a United States-facing public offering. That was only the first step of an extensive process envisioning a better and brighter future for the British Columbia-based company. Initial projections of that public offering were that it would be able to amass some US$400 million. Back then, it was also clear that the company was valued at US$2.5 billion.

Catalyst Capital Group Inc. filed for Initial Public Offering of the casino operator. The ultimate goal of this IPO was shares selling to investors interested in the company. Gateway Casinos has made similar attempts of drawing companies interested in investing in it. The year 2012 saw a futile attempt at going public, focusing solely on Canada’s gaming field.

The casino operator was weighing its options and a possible sale to a rival casino operator. The year 2020 is about to see major steps taken in this direction, as the casino operator revealed the definitive agreement inked with the special purpose acquisition company. Such a business merger of the two companies would be further fortified through a US$30 million equity commitment coming from HG Vora Capital Management, LLC ultimately

New CEO, President

Soon after the merger is finalized, the hospitality and gaming company is about to welcome its new Chief Executive Officer and President. Tony Santo is preparing for his retirement following years in Gateway Casinos’ structure. Marc Falcone, the individual currently overseeing Leisure Acquisition, would replace him. This new influence is expected to take Gateway Casinos even further in its expansion plans.

There are some 25 casino locations sprinkled across British Columbia and Ontario, with major plans of expansion in the upcoming couple of years. This year is projected to bring to life casino complexes located in North Bay, Langley, and possibly Greater Sudbury, The first project would see the official launch of Cascades Casino North Bay, which would cost some CA$31.1 million and it is projected to welcome its first casino patrons in May 2020.

Cascades Casino Delta is expected to launch operation within 2020, as construction on site commenced in May 2019. It replaced Delta Town and Country Inn, a hospitality location with 50-year history in Langley. Gateway Casinos is also ready to seek a temporary location for its Greater Sudbury operation, as Gateway Casinos Sudbury’s lease at Sudbury Downs is about to expire in April.