MGM to buy Vegas hotel and casino
MGM Resorts International, the largest casino operator on the Las Vegas Strip, agreed to buy Boyd Gaming Corp’s 50 percent stake in Atlantic City’s Borgata hotel and casino for US$900 million,
As part of the deal, MGM Resorts will sell the entire property for US$1.18 billion to MGM Growth Properties LLC, a real estate investment trust it created earlier this year, and operate the Borgata under a lease-back accord.
The agreement consolidates ownership and operational control of the most successful casino in the New Jersey gambling market. Boyd expects to receive US$600 million in net proceeds after deducting its share of the property’s debt. Borgata estimates it’s also entitled to tax refunds from the city totalling US$180 million.
The deal represents a big bet by MGM on the future of Atlantic City, which has seen its annual casino revenue fall by half since 2005 to US$2.41 billion last year, according to Bloomberg Intelligence.