Canadian Gaming Firm PURE Purchased by Indigenous Gaming Partners
Indigenous Gaming Partners (IGP) Acquires PURE Canadian Gaming
In a significant move, Indigenous Gaming Partners (IGP), a newly-established gaming company formed by five Nova Scotia-based First Nations, has announced the acquisition of PURE Canadian Gaming. The Canadian investment management firm, Onex Corporation’s lower mid-market private equity arm ONCAP, was the previous owner of PURE, which operates four casinos in Canada.
The casinos under PURE include Pure Casino Yellowhead in Edmonton, Pure Casino Edmonton, Pure Casino Calgary, and Pure Casino Lethbridge. IGP was created in collaboration with Sonco Gaming, Inc., a company involved in the ownership, operations, and development of various casinos in Canada.
Michael Peters, Chairman of IGP and CEO of Glooscap Ventures, stated in Tuesday’s announcement, "This acquisition allows us to enter the gaming industry at scale, creating new opportunities for growth and meaningful benefits for our communities." Sonco Gaming CEO Anthony Novac added that the transaction is an "important step toward economic reconciliation and demonstrates the potential for meaningful partnerships in Indigenous gaming."
The sale of PURE Canadian Gaming comes with a minor modification to the master lease agreement PURE entered into with VICI Properties. VICI, a real estate investment trust, bought the real estate assets of PURE's four casinos in January 2023 and agreed to a 25-year leaseback term starting at CA$21.8 million (US$15.4 million) per year, with rent escalations beginning in the third year. PURE had four five-year renewal options. The lease agreement with an affiliate of IGP will remain largely the same, with VICI receiving a five-year right of first offer on any future sale-leaseback deals.
Indigenous gaming initiatives, such as those by Native American tribes in the United States, often focus on casino and gaming activities to support tribal economic development, generating substantial revenue for community services, infrastructure, and other tribal initiatives. While specific details about IGP and their activities are not extensively available, it is expected that this acquisition signifies an enhancement of Indigenous gaming opportunities in Canada.
The acquisition of PURE Canadian Gaming by Indigenous Gaming Partners (IGP) marks their entry into the gaming industry on a larger scale, a move that promises growth opportunities and community benefits in the industry, finance, and business sectors. This transaction also signifies an important step towards economic reconciliation and demonstrates the potential for meaningful partnerships in Indigenous gaming.
