Poster Financial Group
Encyclopedia
For the predecessor companies and owners see Golden Nugget Companies
(1973-1989) and Mirage Resorts
(1989-2000)
Golden Nugget, Inc. (Formerly Poster Financial Group) is a Las Vegas, Nevada
based private investment firm that was originally created by Timothy Poster and Thomas Breitling
to acquire the Golden Nugget Las Vegas
and the Golden Nugget Laughlin
.
, a Las Vegas native, was also an investor.
Poster and Breitling had no casino ownership experience before acquiring the Golden Nugget. They faced some difficulty in obtaining the necessary casino licenses because of their friendship with Rick Rizzolo, a strip club
owner being investigated by the FBI and because of Timothy Poster's uncle who was denied a gaming license because of his alleged association with known illegal bookmaker
s. The Nevada Gaming Control Board recommended that they be licensed for only one year. The board did however, issue them four-year licenses, with an option to apply for permanent licenses in January 2005.
The Poster Financial Group's ownership encountered some difficulties. The television series received ratings below expectations and was canceled after one season. In addition, the strategy of attracting higher level casino player created significant volatility in the first year of operations.
When Poster and Breitling assumed control of the Golden Nugget, they began to upgrade the gambling operation, by installing new "cashless" slot machines and increasing the maximum bet at table games to $15,000. Their story became the basis for The Casino
, a television series on Fox
, which premiered on June 14, 2004.
On November 10, 2004 Barrick Gaming Corporation
, which owns casino/hotels in downtown Las Vegas including The Plaza
, The Vegas Club, The Western
, and The Gold Spike, announced that it would acquire the Golden Nugget Laughlin for $31 million plus working capital
. As part of the purchase agreement, Poster Financial granted Barrick a two-year limited use of the Golden Nugget brand name, after which Barrick will be required to change the name of the property.
On February 4, 2005, Houston, Texas
based Landry's Restaurants, Inc.
agreed to purchase the Golden Nugget Las Vegas for $140 million in cash plus the assumption of $155 million of Senior Secured Notes due in 2011 and certain working capital liabilities.
On May 31, 2005 the agreement for Barrick Gaming to acquire the Golden Nugget Laughlin expired without a final deal being reached. As a result, Landry's will acquire this property as part of its agreement to purchase the Golden Nugget Las Vegas. Apparently there will be no increase in the purchase price as a result of this change since the money from the sale would have been used to reduce the debt on the Las Vegas property. This means that Landry's would simply assume more debt.
On September 27, 2005 Landry's completed the acquisition of Poster Financial for approximately $318 million.
Golden Nugget Companies
Golden Nugget Companies Inc. was formed by Steve Wynn in 1973. The company was created after Wynn acquired majority control of the Golden Nugget in Las Vegas, Nevada...
(1973-1989) and Mirage Resorts
Mirage Resorts
Mirage Resorts was an American corporation that owned and operated hotel-casinos. It was created in 1989, having previously been called Golden Nugget Companies...
(1989-2000)
Golden Nugget, Inc. (Formerly Poster Financial Group) is a Las Vegas, Nevada
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
based private investment firm that was originally created by Timothy Poster and Thomas Breitling
Thomas Breitling
Thomas Breitling is an American entrepreneur.His father was a pilot for Northwest Airlines after serving in the Air Force. His mother was a nurse. Breitling was educated at St. John the Baptist in Savage, Minnesota through the 8th grade...
to acquire the Golden Nugget Las Vegas
Golden Nugget Las Vegas
The Golden Nugget Las Vegas is a luxury casino-hotel located in Las Vegas, Nevada on the Fremont Street Experience. The property is owned and operated by Landry's Restaurants....
and the Golden Nugget Laughlin
Golden Nugget Laughlin
The Golden Nugget Laughlin is a casino and hotel located in Laughlin, Nevada and is owned and operated by Landry's Restaurants.The Golden Nugget Laughlin property is the smallest in Laughlin, with only 300 rooms. It is a tropical themed, three-story hotel...
.
Owners and acquisition history
When the company was founded as Poster Financial Group the company's principals were Timothy Poster and Thomas Breitling, two young (mid-30s) entrepreneurs who started Travelscape.com, an internet travel site. Tennis star Andre AgassiAndre Agassi
Andre Kirk Agassi is a retired American professional tennis player and former world no. 1. Generally considered by critics and fellow players to be one of the greatest tennis players of all time, Agassi has been called the best service returner in the history of the game...
, a Las Vegas native, was also an investor.
Poster and Breitling had no casino ownership experience before acquiring the Golden Nugget. They faced some difficulty in obtaining the necessary casino licenses because of their friendship with Rick Rizzolo, a strip club
Strip club
A strip club is an adult entertainment venue in which striptease or other erotic or exotic dance is regularly performed. Strip clubs typically adopt a nightclub or bar style, but can also adopt a theatre or cabaret-style....
owner being investigated by the FBI and because of Timothy Poster's uncle who was denied a gaming license because of his alleged association with known illegal bookmaker
Bookmaker
A bookmaker, or bookie, is an organization or a person that takes bets on sporting and other events at agreed upon odds.- Range of events :...
s. The Nevada Gaming Control Board recommended that they be licensed for only one year. The board did however, issue them four-year licenses, with an option to apply for permanent licenses in January 2005.
The Poster Financial Group's ownership encountered some difficulties. The television series received ratings below expectations and was canceled after one season. In addition, the strategy of attracting higher level casino player created significant volatility in the first year of operations.
History
In January 2004 the Golden Nugget, Las Vegas and the Golden Nugget, Laughlin were acquired for approximately $215 million.When Poster and Breitling assumed control of the Golden Nugget, they began to upgrade the gambling operation, by installing new "cashless" slot machines and increasing the maximum bet at table games to $15,000. Their story became the basis for The Casino
The Casino
The Casino was a American reality television series broadcast on the FOX network in 2004 which followed two dot-com millionaires, Thomas Breitling and Tim Poster, as they manage the Golden Nugget Hotel & Casino, located in downtown Las Vegas instead of the more popular Las Vegas Strip.The show was...
, a television series on Fox
Fox Broadcasting Company
Fox Broadcasting Company, commonly referred to as Fox Network or simply Fox , is an American commercial broadcasting television network owned by Fox Entertainment Group, part of Rupert Murdoch's News Corporation. Launched on October 9, 1986, Fox was the highest-rated broadcast network in the...
, which premiered on June 14, 2004.
On November 10, 2004 Barrick Gaming Corporation
Barrick Gaming Corporation
Barrick Gaming Corporation is a private company that was founded by D.W. Barrick and Stephen Crystal. The company formerly operated several hotels and casinos in Las Vegas, Nevada...
, which owns casino/hotels in downtown Las Vegas including The Plaza
Plaza Hotel & Casino
The Plaza Hotel & Casino is a casino-hotel located in downtown Las Vegas, Nevada owned by the Tamares Group and Play LV is the leaseholder and operator of the property. It currently has 1,037 rooms and suites, as well as an casino and there is more than of event space...
, The Vegas Club, The Western
The Western
The Western Hotel and Casino is a casino in Las Vegas, Nevada. The hotel is closed and the casino is owned by the Tamares Group and operated by Navegante....
, and The Gold Spike, announced that it would acquire the Golden Nugget Laughlin for $31 million plus working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
. As part of the purchase agreement, Poster Financial granted Barrick a two-year limited use of the Golden Nugget brand name, after which Barrick will be required to change the name of the property.
On February 4, 2005, Houston, Texas
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
based Landry's Restaurants, Inc.
Landry's Restaurants, Inc.
-External links:*...
agreed to purchase the Golden Nugget Las Vegas for $140 million in cash plus the assumption of $155 million of Senior Secured Notes due in 2011 and certain working capital liabilities.
On May 31, 2005 the agreement for Barrick Gaming to acquire the Golden Nugget Laughlin expired without a final deal being reached. As a result, Landry's will acquire this property as part of its agreement to purchase the Golden Nugget Las Vegas. Apparently there will be no increase in the purchase price as a result of this change since the money from the sale would have been used to reduce the debt on the Las Vegas property. This means that Landry's would simply assume more debt.
On September 27, 2005 Landry's completed the acquisition of Poster Financial for approximately $318 million.