Century Casinos sells two racinos in Alberta for $16.4M and cuts $7.5M in annual rent

Century Casinos sold the operations of Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino near Calgary to Highfield Investment Group for approximately $16.4 million (C$23.2 million), as announced by the operator on Monday, September 28, 2026. The company stated that the price equates to a multiple of 6.1 times the combined EBITDA of 2025 and that, by withdrawing from the master lease with VICI Properties, it will stop paying about $7.5 million (C$10.7 million) annually in rent.

Century Casinos sells racinos in Alberta: terms and timeline

The sale covers the racetrack and gaming operations; Century does not own the land or buildings. The announced price, approximately $16.4 million, represents "a multiple of 6.1x the EBITDA for the 2025 fiscal year" for the two properties, implying a combined EBITDA of around $2.7 million in 2025. Century did not specify how the consideration is divided between Century Mile and Century Downs.

Century owns the entirety of Century Mile and 75% of Century Downs; unrelated shareholders retain the remaining 25%. The company did not specify how much of the proceeds from the operation will go to those minority shareholders. Macquarie Capital acted as the exclusive financial advisor to Century, and Field Law acted as legal advisor.

The closing of the transaction is expected in the fourth quarter of 2026 or the first quarter of 2027 and is subject to regulatory approvals that the parties did not name in their announcement. The provincial licenses in Alberta are issued by the Alberta Gaming, Liquor and Cannabis Commission and Horse Racing Alberta.

Why the operation changes the balance of Century Casinos

The most significant financial element is not just the net cash received but the elimination of the rental burden. Subsidiaries of VICI Properties own the property and lease it to Century under a triple-net master lease that covers most of its casinos. At closing, Century and VICI will amend that contract to exclude the two racinos, which will reduce Century's annual rent by approximately $7.5 million (C$10.7 million).

This reduction equates to nearly half of the annualized sale price and, against the implied EBITDA of $2.7 million, suggests that the racinos were carrying a rent burden close to three times their operating profits in 2025, according to the statement. Century stated that it will use the proceeds to reduce debt; as of June 30, it had $336.5 million in total debt, of which $331.6 million was related to a syndicated loan with Goldman Sachs maturing in April 2029 with a weighted average rate of 9.83%.

"This transaction enhances our financial flexibility and operational efficiency as we focus on our core assets in the U.S.,” said Co-CEOs Erwin Haitzmann and Peter Hoetzinger.

VICI Properties signs new lease with Highfield and maintains revenue

VICI Properties announced the same day that it will enter into a triple-net lease for 20 years with a subsidiary of Highfield Investment Group for those properties, with an initial base rent of C$10.7 million per year. The contract includes four five-year renewal options, annual escalation at the greater of 1.25% and Canadian inflation capped at 2.5%, and requires a minimum capital expenditure equivalent to 1% of the annual net income of each property. Highfield guarantees the new lease.

VICI stated that there will be no change in the aggregate rent it receives and that Highfield becomes its seventeenth tenant. John Payne, President and Chief Operating Officer of VICI, stated that the transaction "helps to de-leverage Century's balance sheet."

Buyer profile: Highfield Investment Group

Highfield Investment Group is a private company based in Calgary with nearly 50 years in real estate, hospitality, agriculture, property management, and energy services, and over 20 years of experience in thoroughbred racing in Western Canada as a breeder, owner, and operator. Adrian Munro, President of Highfield, stated that the company will implement "a business plan to modernize the racetracks."

Thoroughbred Daily News added that Munro also chairs the Canadian Thoroughbred Horse Society and that Paul Ryneveld, Vice President of Racing Entertainment Centers at Highfield, boasts 38 years of experience in North American racing.

Strategic impact: Century focuses on the U.S. and assesses Poland

Century retains two casinos in Alberta in Edmonton and St. Albert and the majority of Casinos Poland, which the company included in the strategic review initiated in August 2025. As of June 30, the group had $60.2 million in cash and reported a net loss attributable to shareholders of $27.4 million in the first half of 2026. Its long-term financing obligation with VICI amounted to $708.0 million.

The board had launched the strategic review to consider mergers, the sale of the company, and divestitures, including operations in Poland. With a loan nearing 10% maturing in 2029, Century has made it clear that other sales are possible, but they depend on a landlord willing to re-lease and buyers prepared to take on the rent burden.

Regulatory and market context in Alberta

The AGLC temporarily extended until March 31, 2029, the percentage of net slot machine revenues that gaming houses retain, from 15% to 17%, according to Century's quarterly report as of June 30. Alberta also opened a regulated iGaming market on July 13, 2026. The proposed move of a competitor from Camrose to south Edmonton — about 11 miles from Century Mile — requires reapplication following a judicial review in May.

What investors and operators should consider

For Century, the primary benefit is an improvement in its lease-adjusted leverage metric: the elimination of a fixed rent of C$10.7 million annually reduces pressure on cash flow more than the partial debt repayment that the sale will generate. For VICI, the deal maintains cash flow and replaces a listed tenant with a private operator with parental guarantees; provincial exposure increases.

For suppliers and potential buyers of gaming assets in Canada, the transaction underscores that the market value of these assets is heavily determined by lease conditions and the property owner's willingness to accept a new tenant.

Gonzalo Marín, Operations Correspondent in the Sector.