Sartini buying slot route, resigning as COO

Monday, June 18, 2001 | 10:40 a.m.

Station Casinos Inc. announced Friday it will sell its slot route operation, Southwest Gaming Services Inc., to Blake Sartini, its executive vice president and chief operating officer.

In connection with the deal, Sartini will resign as Station's COO, though he will remain a director and shareholder of the company. Station is expected to name a new COO shortly.

Station will sell Southwest to Sartini, its COO since 1997, for $14 million in Station stock now held by Sartini. The exact number of shares will be determined by Station's market price at a later date, and could range from 814,077 shares to 994,601 shares. Sartini holds 1.4 million shares of Station stock, and owns an additional 5.8 million shares jointly with his wife, Delise Sartini.

Delise Sartini is the sister of Station Chairman Frank Fertitta III.

Southwest is Nevada's fourth-largest slot route operation, with 900 slot machines in operation, primarily in taverns in the Las Vegas area. Station said the subsidiary accounted for less than 1 percent of its $258 million in cash flow over the 12 months ending March 31.