Affinity Gaming

Affinity Gaming
Formerly called
 Herbst Gaming (1987–2011)
Private
Industry Gambling
Founded 1987
Headquarters Paradise, Nevada
Key people
 Michael Silberling (CEO)
Website affinitygaming.com

Affinity Gaming, formerly known as Herbst Gaming, is a casino operator based in Paradise, Nevada that operates five casinos in Nevada, three in Colorado, two in Missouri, and one in Iowa.

History

The old logo of Herbst Gaming

The business traces it roots to the Terrible Herbst Oil Company founded in 1959 by Ed Herbst (grandfather of the current owners) which owns gasoline stations throughout Nevada, California, Utah and Arizona.[1] The stations bear the logo of a "terrible" cowboy wearing a handlebar mustache and black hat.[2]

In 1987, Herbst Gaming was formed by brothers Ed Herbst, Troy Herbst and Tim Herbst (grandchildren of the patriarch) to service the slot machines in the stations.

In 1997, it opened its first casino, the Town Casino, in Pahrump, Nevada and the Casino and Bowl in Henderson, Nevada. This was followed by the Lakeside Casino in Pahrump in 1999, the Terrible's Hotel and Casino (formerly the Continental Hotel and Casino) in 2000 in Paradise, Nevada and Searchlight Casino in 2003.[3]

On December 8, 2002, Herbst Gaming agreed to buy International Game Technology's Anchor Coin slot route operation with 1,100 machines.

In 2005, it acquired three Midwest casinos in St. Joseph, Missouri, La Grange, Missouri and Osceola, Iowa from Grace Entertainment for $287 million.[4] Grace was a Midwest contractor who had developed racing and casino operations there.[5]

In May 2006, Sands Regent announced plans to be acquired by Herbst. In January 2007, Herbst purchased four casinos including the Red Hawk Sports Bar,[6] Sands Regent and Rail City Casino for $119 million.

In 2006, it also acquired Primm Valley Casino Resorts from MGM Mirage for $400 million.[7] The sale closed on April 10, 2007.

In 2008, Ed Herbst was replaced by Tim Herbst as chairman and Troy Herbst as CEO.[8]

The operations of the two companies in 2008 represented 80 gasoline stations, 600 different slot route locations.[9]

In March 2009, Herbst announced its plans to enter a pre-arranged Chapter 11 bankruptcy whereby it would keep its slot routes but give ownership of its casinos to its creditors thus splitting its current operations into two holding companies. Herbst would continue to manage the casinos.[10] Herbst emerged from Chapter 11 on December 31, 2010 under new ownership and changed its name to Affinity Gaming, LLC on May 20, 2011.[11]

In March 2012, Affinity sold the Terrible's Town Casino and Terrible's Lakeside Casino & RV Park in Pahrump and much of its slots route operations to Golden Gaming.[12] Golden in turn sold to Affinity three casinos in Black Hawk, Colorado: the Golden Gates, Golden Gulch, and Golden Mardi Gras.[12] On the same day, Affinity sold the Terrible's Searchlight casino and the remainder of its slots routes to JETT Gaming, owned by the Herbst family.[12]

In February 2013, Affinity sold three of its Northern Nevada casinos (the Sands Regency, Gold Ranch and Terrible's Dayton) for $19.2 million to Truckee Gaming, a new company led by Affinity executive Ferenc Szony.[13][14]

In August 2014, Affinity appointed Michael Silberling as chief executive officer, to succeed David Ross.[15]

In August 2016, Z Capital Partners, a private equity firm which already owned 41 percent of Affinity, agreed to buy all outstanding shares, in a transaction valuing the company at $580 million.[16][17]

Gaming operations

Former properties

References

  1. ↑ "Archived copy". Archived from the original on 2009-01-23. Retrieved 2009-01-16.
  2. ↑ "Investor Relations Home". Herbst Gaming. Retrieved 2009-03-12.
  3. ↑ http://library.corporate-ir.net/library/13/130/130603/items/203567/BOA_2006.pdf
  4. ↑ http://ir.herbstgaming.com/phoenix.zhtml?c=130603&p=irol-newsArticle&t=Regular&id=594091&
  5. ↑ "Archived copy". Archived from the original on 2010-03-05. Retrieved 2009-01-16.
  6. 1 2 Stutz, Howard (2008-06-19). "Debt-strapped Herbst Gaming shuts small Northern Nevada casino". Las Vegas Review-Journal. p. 3D.
  7. ↑ Howard Stutz (2006-11-01). "Herbst Gaming to buy Primm properties". Las Vegas Review-Journal. Gaming Wire. Archived from the original on 9 March 2007. Retrieved 2007-03-13.
  8. ↑ Stutz, Howard (2008-05-03). "Herbst Gaming shuffling managers". Las Vegas Review-Journal. Archived from the original on 5 June 2008. Retrieved 2008-06-19.
  9. ↑ http://ir.herbstgaming.com/phoenix.zhtml?c=130603&p=irol-irhome
  10. ↑ Stutz, Howard (23 March 2009). "Herbst Gaming files Chapter 11 plan". Las Vegas Review Journal. Retrieved 24 June 2011.
  11. ↑ "Investor relations overview". Herbst Gaming, LLC. Archived from the original on 14 June 2011. Retrieved 24 June 2011.
  12. 1 2 3 Stutz, Howard (1 March 2012). "Las Vegas gaming companies complete transactions involving casinos, slot machine routes". Las Vegas Review-Journal. Retrieved 1 March 2012.
  13. ↑ Stutz, Howard (September 7, 2012). "Affinity Gaming to sell three Northern Nevada casinos for $19.2 million". Las Vegas Review-Journal. Retrieved 2012-09-07.
  14. ↑ "Affinity Gaming divests three non-core casino properties in Northern Nevada" (Press release). Affinity Gaming. February 1, 2013. Retrieved 2013-02-06.
  15. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2014-10-05. Retrieved 2014-09-16.
  16. ↑ Richard N. Velotta (August 23, 2016). "Affinity Gaming, owner of Silver Sevens, sold to private equity firm". Las Vegas Review-Journal. Retrieved 2016-08-24.
  17. ↑ "Affiliates of Z Capital Partners enter into definitive agreement to acquire Affinity Gaming" (Press release). Z Capital Partners. August 23, 2016. Retrieved 2016-08-23 – via PR Newswire.

External links

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