Affinity Interactive

{{short description|Private casino and sports betting company}}

{{Infobox company

| name = Affinity Interactive

| logo =

| former_name = {{ubl|Herbst Gaming (1987–2011)|Affinity Gaming (2011–2021)}}

| type = Private

| slogan =

| foundation = 1987

| location = Paradise, Nevada

| key_people = Andrei Scrivens (CEO)

| num_employees =

| industry = Gambling

| products =

| revenue =

| owner = Z Capital Partners

| homepage = {{URL|affinityinteractive.com}}

}}

Affinity Interactive, formerly known as Herbst Gaming and Affinity Gaming, is an American private casino and sports betting company based in Paradise, Nevada. It operates eight casinos in Nevada, Missouri, and Iowa, and publishes the Daily Racing Form.

History

File:Herbst Gaming logo.jpg

The company traces its roots to 1987, when its predecessor was formed to service the slot machines at the Terrible Herbst gas stations.{{cite news|title=Herbst Gaming to buy Sands Regent|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=May 18, 2006|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F111B64BE6D13DF08&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite report|title=Form 10-K: Annual Report|publisher=Herbst Gaming|date=March 29, 2002|page=40|url=https://www.sec.gov/Archives/edgar/data/1160294/000091205702012623/a2074561z10-k.htm|via=EDGAR}} It was operated by brothers Ed, Tim, and Troy Herbst, whose father, Jerry Herbst, owned the gas stations.{{cite news|title=Herbst Gaming announces name change to Affinity Gaming|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=May 23, 2011|url=https://www.reviewjournal.com/business/casinos-gaming/herbst-gaming-announces-name-change-to-affinity-gaming/|accessdate=2019-03-08}} Their company later became a slot route operator, maintaining slot machines at other businesses such as taverns and laundromats.{{cite news|title=The Vegas Guy: Terrible Casino|newspaper=UPI|author=Joe Bob Briggs|date=April 17, 2001|url=https://www.upi.com/Archives/2001/04/17/The-Vegas-Guy-Terrible-Casino/4071987480000/|accessdate=2019-03-08}}

The Herbsts opened their first casino, the Terrible's Town Casino in Pahrump, Nevada, in 1996.{{cite news|title=Town Casino readies itself for a 'Terrible' 10th|newspaper=Pahrump Valley Times|author=Mark Waite|date=June 23, 2006|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1256E2282BE3DED0&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} This was followed by Terrible's Town Casino and Bowl in Henderson, Nevada;{{cite news|title=Ohioan captures Orleans tourney|newspaper=Las Vegas Sun|author=John McCarron|date=August 14, 1997|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F13270DC1AB6C16C0&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Herbst buys St. Jo Frontier Casino|newspaper=St. Joseph News-Press|author=Greg Kozol|date=July 22, 2004|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F11A09AD149B6B5A8&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} Terrible's Lakeside Casino in Pahrump in 1999;{{cite news|title=MGM and Venetian applications approved by gaming panel|newspaper=Las Vegas Sun|date=February 26, 1999|url=https://lasvegassun.com/news/1999/feb/26/mgm-and-venetian-applications-approved-by-gaming-p/|accessdate=2019-03-08}}{{cite news|title=Fire marshal: Lakeside meets safety standards|newspaper=Pahrump Valley Times|author=Henry Brean|date=June 4, 1999|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F125E7D54FA3181B8&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} and Terrible's Hotel and Casino (formerly the Continental Hotel and Casino) in 2000 near the Las Vegas Strip.{{cite news|title=Fireworks open Terrible's at old Continental site|newspaper=Las Vegas Sun|date=December 7, 2000|url=https://lasvegassun.com/news/2000/dec/07/fireworks-open-terribles-at-old-continental-site/|accessdate=2019-03-08}}

In 2000, the Herbsts' slot company, E-T-T Inc., doubled its size by acquiring the slot route operation of Jackpot Enterprises for $41 million, bringing it to a total of 6,000 machines under management.{{cite news|title=Buyers of Continental casino receive approval to take over slot route|newspaper=Las Vegas Sun|date=October 5, 2000|url=https://lasvegassun.com/news/2000/oct/05/buyers-of-continental-casino-receive-approval-to-t/|accessdate=2019-03-08}}{{cite report|title=Form 8-K: Current Report|publisher=Jackpot Enterprises|date=November 30, 2000|url=https://www.sec.gov/Archives/edgar/data/351903/000035190300000067/0000351903-00-000067-0001.txt|via=EDGAR}}

In 2001, the Herbst brothers' gaming interests were reorganized as Herbst Gaming, Inc., in connection with a $170-million bond offering.{{cite report|title=Form 10-K: Annual Report|publisher=Herbst Gaming|date=March 29, 2002|page=2|url=https://www.sec.gov/Archives/edgar/data/1160294/000091205702012623/a2074561z10-k.htm|via=EDGAR}}

The company opened its fifth casino, Terrible's Searchlight Casino in Searchlight, Nevada, in 2002.{{cite news|title=Herbst Gaming Inc. opens fifth property|newspaper=Las Vegas Sun|date=July 2, 2002|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1326E23249D56908&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

In 2003, Herbst became the largest slot route operator in Nevada by acquiring Anchor Coin and its 1,100 machines from International Game Technology for $61 million.{{cite news|title=Herbst Gaming reaches deal to acquire IGT's 1,100-machine slot route|newspaper=Las Vegas Review-Journal|author=Jeff Simpson|date=December 7, 2002|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0F7D38846D4FDBB7&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Slot route operator closes on expansion deal|newspaper=Las Vegas Sun|date=February 27, 2003|url=https://lasvegassun.com/news/2003/feb/27/slot-route-operator-closes-on-expansion-deal/|accessdate=2018-03-08}}

In 2005, Herbst expanded to the Midwest by acquiring three casinos in Missouri and Iowa from W.M. Grace Entertainment for $287 million.{{cite news|title=Herbst expanding with Midwest riverboat deal|newspaper=Las Vegas Sun|date=July 21, 2004|url=https://lasvegassun.com/news/2004/jul/21/herbst-expanding-with-midwest-riverboat-deal/|accessdate=2019-03-10}}{{cite news|title=LaGrange casino under new ownership|newspaper=Daily Gate City|location=Keokuk, IA|author=Steve Dunn|date=February 1, 2005|url=http://www.mississippivalleypublishing.com/daily_gate/news/lagrange-casino-under-new-ownership/article_86f62799-d599-5622-aa2b-f2fbd815c055.html|accessdate=2019-03-10}}

In 2006, a statewide smoking ban was enacted in Nevada at taverns and convenience stores, which was expected to hurt the revenues of slot route operators such as Herbst.{{cite news|title=Convenience stores expect slot and cigarette revenues to drop|newspaper=Las Vegas Business Press|author1=Valerie Miller|author2=Matt Ward|date=November 20, 2006|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1246107971037858&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Taverns lobby for Question 4|newspaper=Las Vegas Review-Journal|author=Annette Wells|date=October 13, 2006|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F114CD6939DF933D8&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In response, the company began to diversify by acquiring more casinos.{{cite news|title=Q&A: David Ross-Ferrenc Szony|newspaper=Las Vegas Sun|author=Richard N. Velotta|date=December 24, 2010|url=https://lasvegassun.com/news/2010/dec/24/q-david-ross-ferrenc-szony/|accessdate=2019-03-11}} In January 2007, Herbst purchased Sands Regent, a company with four Northern Nevada casinos, including the Sands Regency and the Rail City Casino, for $119 million.{{cite news|title=Herbst Gaming to buy Sands Regent|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=May 18, 2006|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F111B64BE6D13DF08&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite press release|title=Herbst Gaming, Inc. announces the completion of the acquisition of The Sands Regent|publisher=Herbst Gaming|date=January 4, 2007|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F11674223D74C2C20&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} Later that year, it also acquired the Primm Valley Casino Resorts, a group of three casinos at the Nevada–California state line, from MGM Mirage for $400 million.{{cite news|title=Back to a family fold in Primm|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=April 11, 2007|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F11877F6E677FF810&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

In early 2008, the company revealed that it was considering a sale or bankruptcy, because of poor financial results stemming from the economic slowdown and the smoking ban.{{cite news|title=Herbst Gaming hires financial adviser|newspaper=Las Vegas Business Press|author=Howard Stutz|date=March 10, 2008|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1246106FF5869F18&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Herbst Gaming faces hurdles|newspaper=Las Vegas Review-Journal|date=April 2, 2008|url=https://www.reviewjournal.com/business/herbst-gaming-faces-hurdles/|accessdate=2019-03-10}} Analysts said that the company was also suffering from having overpaid for the Primm casinos, which faced increasing competition from expanding tribal casinos in Southern California.

Herbst Gaming filed for Chapter 11 bankruptcy protection in March 2009 with a prepackaged plan to hand ownership of the casinos to the company's bank lenders, while the Herbst family would receive a 90 percent stake in the slot route business.{{cite news|title=Herbst Gaming files for bankruptcy protection|newspaper=Las Vegas Sun|author=Steve Green|date=March 22, 2009|url=https://lasvegassun.com/news/2009/mar/22/herbst-gaming-files-bankruptcy-protection/|accessdate=2019-03-10}} After objections from bondholders, the plan was revised to give full ownership of the slot route operation to the creditors, leaving the Herbsts with no role in the business.{{cite news|title=Herbst reorganization plan gets OK|newspaper=Las Vegas Review-Journal|author=Arnold M. Knightly|date=October 31, 2009|url=https://www.reviewjournal.com/business/herbst-reorganization-plan-gets-ok/|accessdate=2019-03-10}} The company, reorganized as Herbst Gaming LLC, emerged from bankruptcy at the end of 2010, owned by a group of approximately 140 investment companies and banks.{{cite news|title=Herbst-less Herbst reorganization approved|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=December 16, 2010|url=https://www.reviewjournal.com/business/casinos-gaming/herbst-less-herbst-reorganization-approved/|accessdate=2019-03-10}}{{cite news|title=Leaders named at gaming companies after bankruptcy|newspaper=Las Vegas Sun|author=Steve Green|date=October 25, 2010|url=https://lasvegassun.com/news/2010/oct/25/leaders-named-gaming-companies-after-bankruptcy/|accessdate=2019-03-10}}{{cite news|title=Las Vegas casinos rename their corporations for many reasons|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=February 27, 2011|url=https://www.reviewjournal.com/business/casinos-gaming/las-vegas-casinos-rename-their-corporations-for-many-reasons/|accessdate=2019-03-10}}

File:Golden Gates Casino.jpg

The company changed its name to Affinity Gaming in May 2011, to avoid confusion as the Herbst family planned to rejoin the gaming industry.{{cite news|title=Herbst Gaming announces name change to Affinity Gaming|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=May 23, 2011|url=https://www.reviewjournal.com/business/casinos-gaming/herbst-gaming-announces-name-change-to-affinity-gaming/|accessdate=2019-03-10}} Some properties continued to use the Terrible's name and logo under license from Terrible Herbst, while others were reverted to their previous names.{{cite report|title=Form 10-K: Annual Report|publisher=Affinity Gaming|date=March 31, 2014|page=F-26|url=https://www.sec.gov/Archives/edgar/data/1499268/000144530514001207/form10-k2013.htm|via=EDGAR}} The last Affinity property bearing the name, Terrible's Hotel and Casino, was rebranded as the Silver Sevens in 2013.{{cite news|title=Terrible's Casino to become Silver Sevens Hotel & Casino|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=May 17, 2013|url=https://www.reviewjournal.com/business/casinos-gaming/terribles-casino-to-become-silver-sevens-hotel-casino/|accessdate=2019-03-12}}

In 2012 and 2013, Affinity sold off several "non-core assets".{{cite news|title=Affinity Gaming acquiring casino properties in Colorado|newspaper=Las Vegas Sun|author=Steve Green|date=September 22, 2011|url=https://vegasinc.lasvegassun.com/business/gaming/2011/sep/22/affinity-gaming-acquiring-casino-properties-colora/|accessdate=2019-03-12}}{{cite news|title=Affinity selling three of four Northern Nevada casinos|newspaper=Las Vegas Sun|author=Steve Green|date=September 8, 2012|url=https://vegasinc.lasvegassun.com/business/gaming/2012/sep/08/affinity-selling-three-four-northern-nevada-proper/|accessdate=2019-03-12}} The slot route was sold to Golden Gaming and JETT Gaming (a new company formed by Jerry Herbst).{{cite news|author=Howard Stutz|title=Las Vegas gaming companies complete transactions involving casinos, slot machine routes|url=https://www.reviewjournal.com/business/casinos-gaming/las-vegas-gaming-companies-complete-transactions-involving-casinos-slot-machine-routes/|accessdate=2019-03-10|newspaper=Las Vegas Review-Journal|date=March 1, 2012}}{{cite news|title=Familiar faces stay despite overhauls|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=July 3, 2011|url=https://www.reviewjournal.com/business/business-columns/inside-gaming/familiarfaces-staydespite-overhauls/|accessdate=2019-03-12}} The two casinos in Pahrump were also sold to Golden Gaming, and the Searchlight casino to JETT. The Sands Regency and two smaller casinos in Northern Nevada were sold for $19.2 million to Truckee Gaming, a new company led by Affinity executive Ferenc Szony.{{cite news|title=Affinity Gaming to sell three Northern Nevada casinos for $19.2 million|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=September 7, 2012|url=http://www.lvrj.com/business/affinty-gaming-to-sell-three-northern-nevada-casinos-for-19-2-million-168975366.html|accessdate=2012-09-07}}{{cite press release|title=Affinity Gaming divests three non-core casino properties in Northern Nevada|publisher=Affinity Gaming|date=February 1, 2013|url=http://www.businesswire.com/news/home/20130201005777/en/Affinity-Gaming-Divests-Non-Core-Casino-Properties-Northern|accessdate=2013-02-06}} Meanwhile, Affinity expanded to Colorado by buying three casinos in Black Hawk from Golden Gaming.

In February 2017, Z Capital Partners, a private equity firm which had already built up a 41 percent stake in Affinity, bought all outstanding shares in a transaction valuing the company at $580 million.{{cite news|title=Affinity Gaming, owner of Silver Sevens, sold to private equity firm|newspaper=Las Vegas Review-Journal|author=Richard N. Velotta|date=August 23, 2016|url=http://www.reviewjournal.com/business/casinos-gaming/affinity-gaming-owner-silver-sevens-sold-private-equity-firm|accessdate=2016-08-24}}{{cite press release|title=Z Capital Partners completes acquisition of Affinity Gaming|publisher=Z Capital Partners|date=February 1, 2017|url=https://www.prnewswire.com/news-releases/z-capital-partners-completes-acquisition-of-affinity-gaming-300400478.html|via=PR Newswire|accessdate=2019-03-10}}

In October 2018, Z Capital proposed to acquire competing casino operator Full House Resorts and merge it into Affinity, but the offer was rejected by Full House executives.{{cite news|title=Full House Resorts says Affinity Gaming offer may be too low|newspaper=Las Vegas Review-Journal|author=Richard N. Velotta|date=October 22, 2018|url=https://www.reviewjournal.com/business/casinos-gaming/full-house-resorts-says-affinity-gaming-offer-may-be-too-low/|accessdate=2019-03-10}}{{cite news|title=Full House Resorts rejects buyout offer, says it 'lacks credibility'|newspaper=CDC Gaming Reports|author=Howard Stutz|date=October 23, 2018|url=https://www.cdcgamingreports.com/full-house-resorts-rejects-buyout-offer-says-it-lacks-credibility/|accessdate=2019-03-10}}

Affinity sold its three Colorado casinos in January 2020 to Twin River Worldwide Holdings for $51 million.{{cite news|title=Twin River completes $51M purchase of 3 casinos|newspaper=Washington Post|agency=AP|date=January 24, 2020|url=https://www.washingtonpost.com/national/twin-river-completes-51m-purchase-of-3-casinos/2020/01/24/0e4bad74-3ec8-11ea-afe2-090eb37b60b1_story.html|archive-url=https://web.archive.org/web/20200124214207/https://www.washingtonpost.com/national/twin-river-completes-51m-purchase-of-3-casinos/2020/01/24/0e4bad74-3ec8-11ea-afe2-090eb37b60b1_story.html|url-status=dead|archive-date=January 24, 2020|accessdate=2020-01-24}}{{cite news|title=Twin River to buy three casinos in Colorado|newspaper=Providence Journal|author=Patrick Anderson|date=January 29, 2019|url=https://www.providencejournal.com/news/20190129/twin-river-to-buy-three-casinos-in-colorado|accessdate=2019-03-16}}

In March 2020, Affinity established a special-purpose acquisition company, Gaming & Hospitality Acquisition Corp. (GHAC), through which it planned to become a publicly-traded company and merge with a to-be-determined company in the gaming industry.{{cite news|title=Z Capital's Affinity Gaming seeks to raise $150 million for SPAC|work=Bloomberg|author=Gillian Tan|date=October 5, 2020|url=https://www.bloomberg.com/news/articles/2020-10-05/z-capital-s-affinity-gaming-seeks-to-raise-150-million-for-spac|access-date=2021-07-04}}{{cite report|title=Form S-1: Draft Registration Statement|publisher=Gaming & Hospitality Acquisition Corp.|date=July 31, 2020|url=https://www.sec.gov/Archives/edgar/data/0001806156/000095012320007469/filename1.htm|page=2|via=EDGAR}} GHAC completed an initial public offering in February 2021, raising $200 million.{{cite press release|title=ZCG and Affinity Gaming affiliate Gaming & Hospitality Acquisition Corp. completes $200 million upsized initial public offering|publisher=Z Capital Group|date=February 5, 2021|url=https://www.prnewswire.com/news-releases/zcg-and-affinity-gaming-affiliate-gaming--hospitality-acquisition-corp-completes-200-million-upsized-initial-public-offering-301223211.html|access-date=2021-07-04}}{{cite news|title=Las Vegas-based Affinity Gaming is seeking an acquisition|work=Las Vegas Review-Journal|date=January 15, 2021|author=Bailey Schulz|url=https://www.reviewjournal.com/business/casinos-gaming/las-vegas-based-affinity-gaming-is-seeking-an-acquisition-2254545/|access-date=2021-07-04}} Z Capital later announced that it would merge Affinity with a sister company, Sports Information Group, the parent company of the Daily Racing Form.{{cite news|title=Z Capital's Affinity Gaming, Sports Info Group plan to merge|work=Bloomberg|author=Gillian Tan|date=June 13, 2021|url=https://www.bloomberg.com/news/articles/2021-06-13/z-capital-s-affinity-gaming-sports-info-group-said-to-merge|access-date=2021-07-04}} The combined company would be named Affinity Interactive, and would continue to seek an acquisition target with GHAC. The merger was completed in July 2021.{{cite press release|title=ZCG announces completion of merger creating Affinity Interactive|publisher=Z Capital Group|date=July 6, 2021|url=https://www.prnewswire.com/news-releases/zcg-announces-completion-of-merger-creating-affinity-interactive-301325759.html|access-date=2021-08-03|via=PR Newswire}}

Gaming operations

=Former properties=

References

{{Reflist|30em}}