VICI Properties has entered the Las Vegas locals gaming market through a major $1.16 billion sale-leaseback acquisition of seven casino properties from Golden Entertainment, diversifying beyond the iconic Strip into more stable, resident-driven venues while reassessing broader portfolio risks amid evolving market dynamics and recent analyst adjustments.
VICI Properties Deepens Nevada Footprint in Strategic Shift to Locals Market
VICI Properties continues to solidify its position as a leading experiential real estate investment trust focused on gaming and entertainment assets. The company’s latest move—a $1.16 billion sale-leaseback transaction with Golden Entertainment—marks its formal entry into the Las Vegas locals market, a segment long eyed for its resilience and consistent performance.
Announced in the fourth quarter of 2025, the deal involves VICI acquiring 100% of the land, buildings, and improvements for seven properties across southern Nevada. These include:
The STRAT Hotel, Casino & Tower, an iconic landmark on the North Las Vegas Strip known for its towering observation deck and thrill attractions.
Arizona Charlie’s Decatur and Arizona Charlie’s Boulder, two well-established locals favorites in the heart of the Las Vegas valley.
Aquarius Casino Resort and Edgewater Casino Resort in Laughlin, Nevada, offering riverfront gaming and entertainment.
Pahrump Nugget Hotel & Casino and Lakeside RV Park & Casino in Pahrump, Nevada, serving regional audiences with hotel, casino, and recreational amenities.
This portfolio adds meaningful scale to VICI’s Nevada holdings, which already feature some of the most prominent resorts on the Las Vegas Strip. The transaction is structured as a triple-net master lease, with initial annual rent set at $87 million, reflecting a 7.5% capitalization rate on the acquisition price. Under the terms, Golden Entertainment will continue operating the properties through a new entity led by its CEO, ensuring operational continuity while VICI captures stable rental income.
The Las Vegas locals market stands out for several compelling attributes. It ranks as the second-largest gaming market in the United States based on gross gaming revenue from 2024 data, trailing only the Strip itself. Unlike tourist-heavy Strip properties, locals venues draw primarily from the growing resident population in the Las Vegas valley and surrounding areas. This demographic supports more predictable demand patterns, driven by consistent visitation from nearby households rather than fluctuating tourism cycles.
Nevada’s regulatory environment remains a key advantage, characterized by stability and relatively low tax burdens compared to other gaming jurisdictions. High barriers to entry—due to limited land availability, zoning restrictions, and established competition—further protect incumbents and support long-term value in these assets. VICI’s expansion here aligns with broader trends in the gaming REIT space, where operators increasingly seek diversification into markets with recurring revenue streams and lower volatility.
This acquisition broadens VICI’s exposure within a single metro area but mitigates some concentration risks by incorporating venues with different customer profiles. The locals segment has demonstrated resilience through economic shifts, benefiting from population growth in southern Nevada and strong regional demand tailwinds. Recent performance in the locals market has outpaced broader expectations, with operators reporting steady gains in slot and table play from repeat visitors.
While the deal enhances geographic and customer diversification in Nevada, it comes amid a period of heightened scrutiny on VICI’s overall risk profile. Analysts have recently adjusted ratings and price targets, citing concerns over tenant concentration among a few major gaming operators and uncertainties in lease structures with key partners. Some downgrades have pointed to potential challenges in the broader REIT sector, where returns lagged the wider market in 2025 but show signs of recovery potential in 2026 under more supportive macroeconomic conditions.
VICI’s balance sheet remains robust, providing ample liquidity to pursue accretive opportunities. The company has consistently deployed capital into high-quality assets, supporting dividend growth and shareholder returns. The board’s decision to increase the quarterly dividend to $0.45 per share in 2025 underscores confidence in cash flow stability even as the portfolio evolves.
Current trading levels reflect a mix of optimism around growth prospects and caution over near-term uncertainties. VICI shares have shown positive short-term momentum in recent periods, with gains supporting the timing of this expansion. The locals acquisition ties directly into the narrative of effective capital deployment, using scale to grow rental income while broadening the experiential real estate footprint.
This transaction represents a calculated step in VICI’s long-term strategy. By penetrating the locals market, the company gains access to a segment with stable growth characteristics and demographic advantages. The inclusion of properties like The STRAT adds a unique asset with landmark status and redevelopment potential, while the Arizona Charlie’s venues and regional holdings provide steady cash flows from established operations.
Looking across the portfolio, VICI maintains ownership in dozens of market-leading destinations spanning gaming, hospitality, and leisure. The addition of these seven properties enhances diversification without fundamentally altering the core tenant base or risk exposures. Management continues to emphasize disciplined growth, focusing on jurisdictions with favorable fundamentals and high barriers to entry.
The deal is anticipated to close in mid-2026, pending standard regulatory approvals and closing conditions. Upon completion, it will further cement VICI’s role as a dominant player in gaming real estate, balancing high-profile Strip exposure with the more dependable locals segment.
Disclaimer: This is for informational purposes only and does not constitute investment advice, financial recommendations, or a solicitation to buy or sell securities. Investors should conduct their own research and consult professionals before making decisions.
