Dayton Depot sold to Sands Regent for $10 million

Reno-based casino giant Sands Regent will purchase the Depot Casino and the Red Hawk Sports Bar in Dayton for $10.1 million, the company announced Monday.

Sands Regent management expect the sale to close this summer.

The purchase price consists of $9.5 million in cash plus about $665,000 in shares of the Sands Regent common stock.

The final purchase price is based on the 12-month financial performance of the Dayton properties prior to the sale closing.

Clete Wandler, Dayton Depot owner and a Carson City resident, declined Monday afternoon to comment on the sale.

Ferenc Szony, Sands Regent president and chief executive officer, said the company looks forward to working with the Dayton management of "these two very strategically located properties.

"Historic and rapidly growing Dayton is the perfect spot for the next phase of our growth strategy as a regional gaming and entertainment company.

'We see opportunities to leverage the unrestricted gaming license and build on the established customer bases in each location."

After spending some time in Dayton on Monday welcoming the new employees to the company, Szony said the new Dayton employees will not lose their jobs.

The Depot Casino, 755 Highway 50 East, is 16,000 square feet and operates 250 slot machines, two restaurants and two bars. The Red Hawk Sports Bar, which is across the street from the depot, operates 33 slot machines, a convenience store and a bar. Both properties have unrestricted gaming licenses and are on five acres. The closing of the acquisition is subject to final due diligence and receipt of all necessary regulatory approvals.

Sands Regent is listed on NASDAQ as SNDS. The casino company expanded from its downtown Reno Sands Regency Casino property through its acquisition of the Gold Ranch in 2002 and Rail City in 2004. The Sands Regency is an 833-room hotel and casino with 29,000 square feet of gaming space.

The Gold Ranch Casino and RV Resort is in Verdi, 12 miles east of Reno. Rail City Casino in Sparks has 16,600 square feet of gaming space.

n Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.