MGM Agrees To Sell Operations Of Mississippi Casino

MGM Resorts Worldwide on Thursday introduced that it has reached an settlement to promote the operations of a on line casino in Mississippi.

Gold Strike Tunica shall be acquired by Cherokee Nation Leisure Gaming Holdings, LLC, a subsidiary of Cherokee Nation Companies, for $450 million in money.

“I need to thank all of our Gold Strike workers who’ve persistently delivered world-class gaming and leisure experiences to our visitors,” mentioned Invoice Hornbuckle, CEO & President, MGM Resorts Worldwide. “Gold Strike is a superb property with a shiny future forward. Strategically, although, we determined to slim our focus in Mississippi to a single resort [with] Beau Rivage.”

In 2021, Gold Strike reported internet earnings of $81.1 million, MGM mentioned.

“It is a nice end result for the Firm as we’re in a position to reprioritize future capital expenditures towards alternatives that can improve the client expertise at our different areas,” mentioned Jonathan Halkyard, CFO & Treasurer, MGM Resorts Worldwide. “We recognize VICI, as the true property proprietor of Gold Strike, working constructively with CNE to facilitate a brand new lease settlement.”

Gold Strike opened in 1994 and was acquired by MGM Resorts in 2005. When it was constructed the gold tower was reported to be the tallest constructing in Mississippi.

The transaction is anticipated to shut within the first half of 2023.

Based on figures from the American Gaming Affiliation, the Mississippi on line casino market noticed $2.67 billion in playing income in 2021, up 48.7% over 2020 when casinos have been compelled to shut as a result of COVID-19.

The state has 29 casinos in whole, based on the AGA.