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Golden Entertainment Reports 2024 Third Quarter Results

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Golden Entertainment Inc. reported financial results for the third quarter ended September 30, 2024. The Company reported third quarter revenue of $161.2 million, net income of $5.2 million and Adjusted EBITDA of $34.0 million. In addition, on November 5, 2024, the Company’s Board of Directors authorized the Company’s recurring quarterly cash dividend of $0.25 per share of the Company’s outstanding common stock payable on January 7, 2025 to shareholders of record as of December 20, 2024. The Company’s Board of Directors also increased the Company’s share repurchase authorization by $100 million, creating $131.4 million of current availability under the Company’s share repurchase program.

Blake Sartini, Chairman and Chief Executive Officer of Golden, said: “In the third quarter, we have maintained our commitment to returning capital to shareholders through our regular dividend and share buyback program despite a challenging operating environment for our properties. We anticipate that business conditions will improve in the fourth quarter and, with our increased share buyback authorization currently at over $130 million, we expect to continue to use our liquidity to acquire our own shares throughout the year.”

The Company repurchased 815,116 shares of common stock in the third quarter, at an average price of $31.65 per share for a total of $25.8 million. In October, after the end of the quarter, an additional 134,613 shares were repurchased for a total of $4.2 million. Year to date, the Company has repurchased 1.94 million shares of the Company’s common stock at an average price of $30.70 per share for a total of $59.5 million.

Consolidated Results

The Company reported third quarter of 2024 revenues of $161.2 million and Adjusted EBITDA of $34.0 million, compared to revenues of $257.7 million and Adjusted EBITDA of $53.2 million for the third quarter of 2023. The declines in revenues and Adjusted EBITDA over the prior year period were primarily related to the exclusion of the results for the Company’s Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada that were sold on July 25, 2023, September 13, 2023 and January 10, 2024, respectively. The Company reported net income of $5.2 million, or $0.18 per fully diluted share, for the third quarter of 2024, compared to net income of $241.2 million, or $7.83 per fully diluted share, for the third quarter of 2023. The third quarter of 2023 results included the impact of the $305.8 million gain on the sales of the Rocky Gap Casino Resort and the Montana distributed gaming business recognized during the quarter.

Debt and Liquidity

As of September 30, 2024, the Company’s total principal amount of debt outstanding was $399.0 million, consisting primarily of $395.0 million in outstanding term loan borrowings.

As of September 30, 2024, the Company had cash and cash equivalents of $68.6 million. There continues to be no outstanding borrowings under the Company’s $240 million revolving credit facility.

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Workers at Caesars Southern Indiana Casino Authorize Strike

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More than 140 workers at Caesars Southern Indiana Hotel & Casino, represented by Teamsters Local 89 and Operating Engineers Local 399, have voted by a 98% margin to authorize a strike. The overwhelming vote is a direct response to management’s refusal to offer a fair contract.

“Our members are united and ready to fight for the strongest possible agreement. This vote sends a clear message — we will not back down. If management won’t negotiate in good faith, we’re prepared to take action,” said Avral Thompson, President of Local 89.

Caesars Southern Indiana, owned and operated by the Eastern Band of Cherokee Indians (EBCI), pulled in more than $240 million in revenue last year, making it one of the most profitable casinos in the state. Workers are demanding a contract that reflects their essential contributions to that success.

“I’ve worked at Caesars for over seven years, and we deserve a contract that values our hard work and dedication. No one wants to strike, but if management keeps disrespecting us at the bargaining table, we’re ready to demand what we’ve earned,” said Sandra Ramirez, a slot attendant at Caesars Southern Indiana and a member of Local 89.

After months of negotiations, management at Caesars Southern Indiana continues to refuse to offer fair retirement benefits and remains far apart on other key economic issues.

“At this point, the ball is entirely in management’s court. If Caesars faces a strike, management will have no one to blame but themselves for the fallout. We stand ready to back our members every step of the way,” said Teamsters General Secretary-Treasurer Fred Zuckerman.

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Compliance Updates

VIP Play Obtains Interim West Virginia iGaming and Sports Wagering Management Service Provider Licenses

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VIP Play Inc. announced the approval of its interim License in West Virginia for both Sports Wagering and iGaming managed services. This follows the recently announced market access partnership between VIP Play and Delaware North’s Wheeling Island Casino.

This milestone marks the company’s initial expansion beyond Tennessee, where it currently operates as a mobile Sports Wagering Operator. The interim License in West Virginia also adds iGaming to the company’s book of business, and allows VIP Play to participate in the rapidly expanding i-Gaming industry. VIP Play expects to begin serving West Virginia customers in the coming months.

Bruce Cassidy, VIP Play CEO & Chairman of the Board, said: “The acquisition of our interim Sports Wagering and i-Gaming License in West Virginia marks a significant milestone in our journey to expand, underscoring our commitment to provide innovative experiences to a wider audience. As we grow our presence, our dedication to excellence stands firm, and we’re excited to play a role in enriching West Virginia’s dynamic gaming community.”

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Compliance Updates

QTech Games sharpens its LatAm focus with MINCETUR licence in Peru

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QTech Games sharpens its LatAm focus with MINCETUR licence in Peru

 

New certification for emerging-markets leader arrives ahead of key industry summit in Sao Paulo and awards recognition

QTech Games, the leading game aggregator for emerging markets, has had its platform and games successfully approved for the Peruvian market, demonstrating that its premier B2B platform and all-encompassing content conforms to the latest legislative updates to enhance and regulate Peru’s local gaming environment.

Peru’s Ministry of Foreign Commerce and Tourism (MINCETUR) has now issued an online gaming licence to QTech Games, whereby all its platform products and games are now deemed legally permitted. This includes its new software service for retail, QTech Hybrid, which allows land-based partners to scale their operations online. QTech Hybrid simplifies transactions by enabling deposits, withdrawals and gameplay while allowing access to players both in-shop and on personal devices.

This breakthrough hybrid solution has quickly won clients and awards in the comparably fragmented African market (most recently in March for Best Innovation at AGE Lagos), and now promises to do likewise across LatAm, where QTech Games has already signed several major clients for both its aggregation platform and its QTech Hybrid solution. This activity has seen it again nominated for Best Aggregator at the SiGMA Americas Awards, which kickstart the SiGMA Americas summit (7-10 April) next week, as the igaming world converges on Sao Paulo for a must-attend conference in another of QTech Games’ “focus markets” for 2025.

Philip Doftvik, QTech Games’ CEO, said: “It’s fantastic to have certified our aggregation platform in Peru via MINCETUR – and I’m pleased to say we have more such approvals pending across the continent. We attended fantastic events in Rio and, more recently, SAGSE 2025 in Buenos Aires – and anticipate more of the same at SiGMA Americas in Sao Paulo next week, where we’re also thrilled to have been shortlisted for Best Aggregator at their LatAm Awards. Given the venue, Brazil will be dominating the discussion for many at SiGMA Sao Paulo. However, we’ll also be looking beyond Brazilian borders this year, and are already active in Mexico, Chile, Colombia and Paraguay. We know our QTech Hybrid solution will work very well wherever we put a pin on the LatAm map.”

QTech Games delegates will be present at five more LatAm summits in 2025, with SiGMA Americas (7 April) the next port of call – followed by GAT Expo Cartagena (28 April), SBC Americas (13 May), Peru Gaming Show (18 June) and GAT Expo Mexico (28 Aug).

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