Parkwest Casinos, a gaming and hospitality investor, has secured $210 million in credit connected to the Bicycle Hotel and Casino purchase from April. Property records filed within Los Angeles County California reveal the amount, which indicates that the venue may be renovated as the new owner takes over.
Details of the Credit Line
According to reports, the filing shows that the trustee for the loan is Comercia Bank, which is acting on behalf of other lenders. The loan allows the Parkwest Casinos company to pull funds that can be used for future costs, including developments.
Last month, the company purchased the Bicycle Hotel and Casino for around $103 million. The loan is for more than double that amount, which suggests that Parkwest has plans to upgrade the property. We know the company plans to rename the facility Parkwest Bicycle Casino after the Gambling Control Commission of California approved the sale two months ago.
Bicycle includes a 100,000 square foot poker room with just under 200 poker tables and other card table games. The property also includes a hotel that has 99 guest rooms.
Long-Running Issues at the Bicycle
The Bicycle Casino was sold this year after many years of issues involving money laundering accusations. The casino was under investigation for quite a long time before the owners agreed to pay $500,000 in a settlement involving violations of anti-money laundering regulations last year.
The operator took responsibility for failing to report suspicious activity reports involving a player from China that was a high roller. The player was able to visit the casino around 100 times within an eight-month period back in 2016 and played baccarat with large amounts of cash.
In some instances, the cash amount was so high, that the player needed a duffle bag to carry it out. In one instance, the player was able to take out $2 million from their account and play in a VIP room for around 12 hours.
In total, the gambler was able to cash in and out $100 million within the short time frame and reports were never filed correctly. The violation was acknowledged but perhaps the reputation damage was done. It will be interesting to see what Parkwest Casinos has in store for the property. Will the additional cash flow be used to revitalize the design and offerings at the venue?
The company already operates five casinos in other areas of California. The Bicycle will be the first gaming property the company operates that is located in the southern portion of the state.