Century Casinos has entered into an agreement for the sale of operations at Century Casino Calgary for CAD 10m ($7.5m).

The deal with 2267166 Alberta Ltd. will include a cash sum plus a three-year quarterly earn out.

Century Casinos’ subsidiary Century Resorts Alberta, Inc. (CRA) will continue to operate the casino and own the real estate.

CRA will enter into a lease agreement with the buyer for the Calgary casino with an annual net rent of approximately CAD 480,000 and a term of three years.

The agreement is subject to approval by the Alberta Gaming, Liquor and Cannabis Commission and is expected to close in 2020.

The cash fee of CAD 10m has already been made to Century Casinos and is non-refundable.

Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos, released a joint comment in regards to the deal.They said: “The transaction immediately strengthens our balance sheet.

“The Calgary casino is one of our smaller operations, contributing $8.4m in net operating revenue and $1.2m in adjusted EBITDA in 2019.”