MGM Resorts is promoting the Gold Strike Tunica on line casino in Mississippi for $450m to Cherokee Nation. [image: Shutterstock.com]
An all-cash deal
MGM Resorts Worldwide is promoting the operations of the Gold Strike Tunica on line casino in Mississippi. The on line casino firm introduced the $450m money sale on Tuesday to Cherokee Nation Leisure Gaming Holdings, which is a subsidiary of Cherokee Nation Companies.
attributable to shut by Q1 subsequent 12 months
The transaction is because of shut by Q1 subsequent 12 months. VICI Properties, which is an actual property funding belief (REIT) that owns the Gold Strike Tunica actual property, will work with Cherokee Nationwide Leisure on a brand new lease settlement. In the meantime, the annual rental quantity MGM pays to VICI via its personal grasp lease settlement will drop by $40m upon closure of the sale.
The deal sees the Cherokee Nation increasing its attain exterior of reservation amenities and into business gaming alternatives, whereas MGM continues to increase its steadiness sheet similtaneously eyeing different initiatives.
Increasing its attain
Commenting on the acquisition, Cherokee Nation Companies chief government officer Chuck Garrett stated: “This acquisition will allow us to raised serve our mission of rising the Cherokee Nation’s economic system, whereas additionally having a big optimistic impression on the native economies we serve.”
He additionally outlined how the deal will assist the tribe execute on its strategic plan to increase exterior of the Cherokee Nation Reservation. The on line casino comprises 50,000 sq. ft of gaming area, in addition to over 1,100 lodge rooms. It lies roughly 20 miles from Memphis.
In a press release, MGM Resorts CEO Invoice Hornbuckle labeled the 32-story on line casino a beautiful property with a shiny future. Suggesting causes for the sale, he stated: “We determined to slim our focus in Mississippi to a single resort, Beau Rivage.”
Two totally different approaches
MGM Resorts has adopted a extra asset-light strategy to its enterprise in latest instances, preferring to enter lease agreements as a substitute. In addition to agreeing to promote the Gold Strike Tunica, it has introduced the $1.07bn sale of the Mirage in Las Vegas, together with its Aria and Vdara resorts.
additionally has 9 different casinos
In the meantime, the Cherokee Nation is hoping to increase its gaming sphere. In addition to already proudly owning and working the Laborious Rock Lodge & On line casino Tulsa, it additionally has 9 different casinos. Different points of the operation embrace resort motels, a horse racing monitor, golf programs, and numerous sorts of retail operations. In complete, Cherokee Nation and its numerous companies make use of 11,000 individuals.