The sale of Sunland Park Racetrack & Casino, a 66-year-old facility in New Mexico, has been finalized for $301 million. Strategic Gaming Management, a Montana-based company, completed the acquisition through a complex sale-leaseback agreement, ensuring the continuity of operations and employment at the venue.
Key Takeaways
- Strategic Gaming Management has acquired Sunland Park Racetrack & Casino for a total of $301 million.
- The deal involves a sale-leaseback of the real estate to Gaming and Leisure Properties Inc. (GLPI) for $183.7 million.
- Strategic Gaming will pay $117.3 million for the operational assets, including gaming licenses and equipment.
- The existing management team and all 180 employees will be retained under the new ownership.
Details of the Financial Transaction
The acquisition, which was finalized on October 15, is structured as a multi-part deal. Strategic Gaming Management, led by entrepreneur Jon Grant Lincoln, purchased the entire Sunland Park operation. A key component of the financing involved the immediate sale of the property's real estate assets.
Gaming and Leisure Properties Inc. (GLPI), a prominent real estate investment trust based in Pennsylvania, purchased the 157-acre property for $183.7 million. Following this transaction, Strategic Gaming entered into a long-term lease agreement with GLPI to continue operating the casino and racetrack on the site.
The initial annual rent for the property is set at $15 million. According to the terms of the lease, this amount will increase by 2% each subsequent year. The remaining $117.3 million of the purchase price covers Sunland Park’s non-real estate assets. These include its gaming machines, the valuable New Mexico gaming and horse racing licenses, and all associated trademarks.
Transaction Breakdown
- Total Purchase Price: $301 million
- Real Estate Sale to GLPI: $183.7 million
- Operational Assets Purchase: $117.3 million
- First-Year Lease Payment: $15 million
New Leadership and Operational Continuity
With the acquisition, Strategic Gaming Management assumes full operational control of Sunland Park. Jon Grant Lincoln, the company's CEO and owner, emphasized that the existing workforce and management structure will remain largely intact. All 180 employees at the facility have been retained, ensuring a smooth transition.
To oversee the facility, Lincoln has promoted a long-time executive. Fred Heinrich, who served as Sunland Park's general counsel and compliance officer for a decade, has been appointed as the new President of Sunland Park. He will be responsible for the day-to-day management of the property. The current General Manager, Kyle Lim, will also continue in his role.
A Legacy of Family Ownership
For approximately 25 years, Sunland Park Racetrack & Casino was owned and operated by the Stan Fulton family. Following Stan Fulton's passing in 2018, his children continued to manage the facility until the recent sale. The acquisition by Strategic Gaming Management marks a new chapter for the historic venue.
In a statement, Lincoln described the purchase as a significant step for his company. He stated, "We will continue to invest in our assets and thoughtfully grow our platform while continuing to pursue opportunities that meet our strategic plans."
Strategic Gaming's Expanding Portfolio
The acquisition of Sunland Park is part of a broader expansion for Strategic Gaming Management. The Nevada-chartered company, which has been in business for 15 years, has been actively growing its portfolio of gaming properties. The company is headquartered at its Baldini’s Casino in Sparks, a suburb of Reno, Nevada.
In addition to its Nevada operations, which include two small casinos at truck stops, Strategic Gaming has a significant presence in South Dakota. The company operates two major properties in Deadwood: the Silverado Franklin Historic Hotel & Gaming complex and the Deadwood Mountain Grand hotel and casino. Across all its locations, the company employs approximately 700 people.
"Matt is a proven financial leader in the gaming industry who I have worked closely with in the past that brings us critical experience as we continue to grow," Lincoln said, commenting on a key executive appointment.
To support its growth, the company also recently appointed Matthew Flandermeyer as its new Chief Financial Officer. Flandermeyer is a former CFO for Golden Entertainment, a large Nevada-based gaming operator, bringing extensive industry experience to the team.
About Sunland Park Racetrack & Casino
Located at 1200 Futurity Drive in Sunland Park, New Mexico, the facility sits strategically near the border of El Paso, Texas, and the U.S.-Mexico border. The 157-acre complex is a major entertainment destination in the region.
The property features a comprehensive set of amenities:
- A 25,000-square-foot casino floor.
- A total of 738 slot machines.
- 12 electronic gaming tables.
- A one-mile racetrack for thoroughbred and quarter-horse racing.
- A grandstand with a seating capacity of 733.
The new ownership plans to build upon the facility's long history while integrating it into its larger network of gaming and entertainment venues. The sale-leaseback model with GLPI is an increasingly common financial strategy in the casino industry, allowing operators to free up capital for investment in operations and expansion.
