Maverick Gaming, a casino and cardroom operator based in Washington state, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The filing, made on Monday, lists the company’s total liabilities and assets in the range of $100 million to $500 million.
The company, led by CEO and co-founder Eric Persson, operates a portfolio of 27 properties across Washington, Nevada, and Colorado. According to court documents, its holdings include approximately 2,500 slot machines, 320 table games, 1,200 hotel rooms, and 30 restaurants. The bankruptcy comes after a period of aggressive expansion under Persson that drew scrutiny from credit analysts.
S&P Global Ratings, in a June 2024 note, characterized Maverick’s capital structure as “unsustainable,” citing high fixed charges, including interest, rent, maintenance, and lease expenses, that outpaced projected earnings.
The agency anticipated the company would continue to burn cash through 2024, despite cost-cutting measures, due to its significant debt and exposure to floating interest rates. It also flagged concerns over corporate governance, pointing to the absence of an independent board and Persson’s combined roles as majority owner and CEO.
Adding to Maverick’s challenges is its competitive position in Washington’s cardroom market. Unlike tribally-owned casinos, which are exempt from paying gaming taxes and can offer slots, sports betting, and higher table limits, Maverick’s properties faced tighter restrictions. Maverick’s attempt to challenge tribal exclusivity over sports betting was dismissed by the Ninth Circuit Court of Appeals in December.
Economic factors further strained operations. S&P noted that layoffs in the tech sector had weakened the local economy, dampening customer spending at Maverick’s properties. Meanwhile, heavy rent obligations and other operating costs limited the company’s ability to reinvest in its businesses or boost marketing.
In tandem with the bankruptcy filing, Maverick announced the closure of four cardrooms in Washington: Dragon Tiger Casino in Mountlake Terrace, Palace Casino in Lakewood, Silver Dollar in Renton, and Roman Casino in Seattle. “We regret to announce the closure of four of our locations,” the company stated on its website.
This bankruptcy follows a debt restructuring completed last year, which provided Maverick with new capital and a two-year extension on its existing obligations. The arrangement included a payment-in-kind feature, allowing the company to pay interest with additional debt instead of cash, but required cash interest payments to begin in early 2025.
The case, filed under the name RunItOneTime LLC, is proceeding in the Southern District of Texas under docket number 25-90191.
