Golden Gaming to end deal to manage casino7 January 2008
Golden Gaming has given notice to the operators of the Hard Rock Hotel of its intent to terminate the casino management agreement for the niche property.
The move comes as the property's owners, DLJ Merchant Banking Partners and Morgans Hotel Group, are scheduled to go before state gaming regulators on Wednesday to seek a gambling license.
Golden Gaming wants to concentrate on its core business of operating slot routes, taverns mostly under the PT's brand and a handful of hotel-casinos in Pahrump and Colorado.
Golden Gaming, which has managed the casino since Feb. 2, is finishing the first year of a two-year management agreement paying a base rent of $20.7 million per year, plus reimbursements for certain expenses.
Golden Gaming receives a monthly management fee of $3.3 million plus a portion of gaming revenue.
The Navegante Group is seeking approval Wednesday from gaming regulators to replace Golden Gaming if Morgans' licensing process is delayed.
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