Posted on: October 24, 2024, 12:17h.
Last updated on: October 24, 2024, 12:52h.
Century Casinos (NASDAQ: CNTY) said its new land-based casino hotel in Caruthersville, Mo. will open on Friday, November 1.
On Wednesday, the Missouri Gaming Commission (MGC) approved the move for what was the last riverboat casino in the state, paving the way for the November 1 opening. The commission signed off on the transfer of Century’s license from a temporary venue to the new permanent casino resort.
The new Century Casino & Hotel Caruthersville will have 599 slot machines and nine live table games, a 50% increase in gaming positions compared with the temporary location. The number of hotel rooms will double to 74,” according to a statement issued by the regional casino operator.
Century acquired the Caruthersville venue and its namesake property in Cape Girardeau in 2019, partnering with gaming real estate investment trust (REIT) VICI Properties on the deals.
Missouri Becoming a Key Market for Century Casinos
In addition to two gaming venues in its home state of Colorado, Rocky Gap in Maryland, the Nugget in Sparks, Nev., and the Mountaineer in West Virginia, Century runs the aforementioned duo of Show Me State casinos, and Missouri is an increasingly prominent part of the operator’s long-term growth story.
Earlier this year, the gaming company opened the Riverview Hotel at its Cape Girardeau venue. The addition of lodging there could make the regional gaming establishment a more appealing destination and help the operator better capitalize on some built-in geographic advantages. The town is home to Southeast Missouri State University and is just 100 miles away from St. Louis, and 150 miles from Memphis.
Shares of Century have tumbled nearly 41% year to date — one of the worst performances among gaming stocks — but some analysts point to the stock being a 2025 story with the two Missouri properties rounding into form.
The Cape Girardeau casino has performed well since the debut of the hotel. Specific to Century Casino Caruthersville, history shows favorable economics, and in some cases, improved earnings for casinos that executed the boat-to-land move.
Century Casino Caruthersville Beating Headwinds
Century was able to keep the Caruthersville project on time and on budget, which are impressive accomplishments at a time of persistent inflation, still high interest rates, and labor shortages.
Construction on the venue commenced in December 2022 with VICI providing $51.9 million in financing.
“VICI will own the real estate improvements associated with the Caruthersville project, which will become part of the Company’s triple-net master lease agreement with subsidiaries of VICI. Annual rent under the lease will increase by approximately $4.2 million,” said the gaming company in the press release.
