NGC okays Cannery partner

Oct 3, 2006 7:06 AM

The Nevada Gaming Commission last week approved the 33 percent acquisition of Cannery Casino Resorts by a division of Oaktree Capital Management.

The transaction results in Millennium Gaming, Inc., equally owned by Bill Paulos and Bill Wortman, to own 67% of Cannery Casino Resorts while the Oaktree fund, a Los Angeles-based global private investment firm, will own 33%.

The transaction is part of a trend in which gaming operators are selling equity positions to institutional investors, in order to raise capital for expansion or other reasons.

The proceeds will be used to build a new casino at a harness race track in Western Pennsylvania. Regulators in Pennsylvania last week approved Millennium Gaming’s license to install an all-slots casino at the existing facilities. Millennium plans to build a new facility early next year to replace the temporary casino. (See related story in today’s Business section.)