MGM Resorts International Has Two More Properties On The Block
One of the biggest casino resort companies in Las Vegas continues to free up cash by selling off its properties. MGM Resorts International recently sold Circus Circus. It also reached a 30-year lease-back deal with the sale of Bellagio Las Vegas. The gaming giant is now soliciting offers for the following Las Vegas Strip properties:
- MGM Grand Las Vegas
- Mandalay Bay Resort and Casino Las Vegas.
The original report of these potential sales came from the Bloomberg news service earlier this week. The report cited several anonymous sources confirming the company’s plans. In conjunction with MGM Growth Properties, interest in these properties is currently being solicited. No interested parties have been identified. Yet, the shortlist of buyers includes the ones who have historically invested in the gaming industry.
The 3,900-room Bellagio deal followed the sale of Circus Circus for $825 million
The lease-back deal for the 3,900-room Bellagio followed a sale to the private equity firm Blackstone Group LP. The sale price for that iconic Las Vegas Strip property was a reported $4.2 billion. This deal followed the sale of Circus Circus for $825 million. That casino was sold to the same owners of Treasure Island Las Vegas. The principal of that ownership group is Phil Ruffin.
The sale of MGM Grand and Mandalay Bay would be consistent with MGM Resorts International’s new business strategy. Jim Murren is the company’s board chairman and CEO. As the principal architect of this new strategy, it involves an asset-light approach that frees up cash. Speculation on future plans includes expansion into the new Japanese casino industry. The company is also looking to expand its presence in the emerging US sports betting industry.
Underway in bringing an integrated casino resort to the Japanese city of Osaka
Plans are underway to bring an integrated casino resort to the Japanese city of Osaka. That country has approved casino gambling through a very limited number of licenses. More and more states are legalizing sports betting through land-based sportsbooks and online sportsbook sites. This is what is driving the other company initiative.
The MGM Grand has long been seen as the flagship brand in the Las Vegas casino industry. It is directly owned by MGM Resorts International. It is also the largest single hotel in the United States with more than 6,800 rooms.
Mandalay Bay is part of a group of 13 properties that have been leased by the parent company. The leases are through MGM Growth Properties. This entity was once part of REIT( MGM Growth Properties real estate investment trust). This property consists of close to 4,800 rooms and a 155,000 square-foot casino floor.
Paving The Way For Online Casino Site In New Jersey
In other company news, MGM Resorts International recently partnered with Verizon Media. This multi-year deal establishes Yahoo! Sports as the company’s official sports betting partner. Also involved in the deal is GVC Holdings as a London-based online casino operator. This entity would power the online sports betting component for all Yahoo! Sports digital properties.
The joint venture paves the way for a mobile sportsbook app. It would be licensed via the state of New Jersey on the BetMGM platform.