Gateway Casinos & Entertainment Ltd., a standout in Canada’s gambling sector, is mulling over its future strategy. Possibilities on the table include a sale, and insiders suggest a valuation around the $2 billion mark, factoring in its notable debt. With 31 gaming venues dotted across British Columbia, Ontario, and Alberta, it’s clear why Gateway Casinos is attracting attention.
To facilitate its strategic search, the company turned to financial giants: Morgan Stanley and Macquarie Group Ltd. Their task? Identify potential investors or buyers, all while keeping negotiations under wraps. The Grand Villa Casino in Burnaby stands as Gateway Casinos’ primary establishment. Over the past three decades, Gateway Casinos has expanded its reach through a mix of acquisitions and organic growth.
Ownership of Gateway Casinos largely rests with Catalyst Capital Group Inc. The buzz around a possible sale has garnered interest from different corners of the gaming world. Analysts believe that while regional casino operators from the U.S. might step forward, industry leaders like Caesars Entertainment and Century Casinos may opt out of further Canadian investments for now.
The recent developments follow after Gateway Casinos’ scrapped plans for an initial public offering (IPO) and a merger with a special purpose acquisition company (SPAC) in 2020. Undeterred by past challenges, the company remains in a strong position with a staff of over 7,000 and a diverse entertainment lineup. The vast portfolio includes 391 table games, 14,288 slot machines, and 81 dining venues, capped off with 564 hotel rooms.
Potential investors will need to have confidence in Canada’s gaming landscape, recognizing its potential despite the nation’s smaller population relative to regions like California.