Net revenues for Q4 increased by 18% to $3.6 billion, while net revenues for the whole year amounted to $13.1 billion, an increase of 36% over the full year 2021. Rent under the lease will escalate annually by 2.0%Įarlier this month, MGM reported financial results for the fourth quarter and the full year of 2022. Initial total annual rent under the lease is $40 million and the lease has an initial term of 25 years, with three 10-year tenant renewal options. VICI has also now entered into a triple-net lease agreement with CNB with respect to the real property associated with Gold Strike. Weil, Gotshal & Manges LLP served as legal counsel to MGM Resorts. The Company expects net cash proceeds after taxes and estimated fees to be approximately $350 million. At the closing of the transaction, MGM Resorts' master lease with VICI Properties, which currently includes the Gold Strike property, will be amended to reduce the annual rent by $40 million to account for the company's sale of the operations of Gold Strike. Jonathan Halkyard, CFO & Treasurer of MGM Resorts International, added: “We plan to use the proceeds from this transaction to further fortify our balance sheet, deploy capital to growth opportunities, and return capital to shareholders.”įor the year ended December 31, 2022, Gold Strike reported net income of $47 million and EBITDAR of $98 million. I wish Gold Strike well, and firmly believe a bright future is ahead for this property.” In total, Cherokee Nation and its various businesses employ 11,000 people.US casino giant MGM Resorts International announced Wednesday it has closed on the sale of the operations of Gold Strike Tunica to CNE Gaming Holdings, a subsidiary of Cherokee Nation Businesses, for $450 million in cash.īill Hornbuckle, CEO & President of MGM, commented: “Gold Strike is an iconic property in Mississippi, and the employees there represent southern hospitality at its finest. Other aspects of the operation include resort hotels, a horse racing track, golf courses, and various types of retail operations. As well as already owning and operating the Hard Rock Hotel & Casino Tulsa, it also has nine other casinos. Meanwhile, the Cherokee Nation is hoping to expand its gaming sphere. As well as agreeing to sell the Gold Strike Tunica, it has announced the $1.07bn sale of the Mirage in Las Vegas, along with its Aria and Vdara resorts. MGM Resorts has adopted a more asset-light approach to its business in recent times, preferring to enter lease agreements instead.
Suggesting reasons for the sale, he said: “We decided to narrow our focus in Mississippi to a single resort, Beau Rivage.” Two different approaches
In a press release, MGM Resorts CEO Bill Hornbuckle labeled the 32-story casino a wonderful property with a bright future. This includes the San Manuel Band of Mission Indians, which became the first tribe to own and operate a casino on the Las Vegas Strip when it acquired the Palms Casino Resort for $650m in 2021.
Other tribes in the country are similarly looking to expand into the commercial gaming space. It lies approximately 20 miles from Memphis. The casino contains 50,000 square feet of gaming space, as well as over 1,100 hotel rooms. He also outlined how the deal will help the tribe execute on its strategic plan to expand outside of the Cherokee Nation Reservation. Expanding its reachĬommenting on the purchase, Cherokee Nation Businesses chief executive officer Chuck Garrett said: “This acquisition will enable us to better serve our mission of growing the Cherokee Nation’s economy, while also having a significant positive impact on the local economies we serve.” The deal sees the Cherokee Nation expanding its reach outside of reservation facilities and into commercial gaming opportunities, while MGM continues to expand its balance sheet at the same time as eyeing other projects. Meanwhile, the annual rental amount MGM pays to VICI through its own master lease agreement will drop by $40m upon closure of the sale. VICI Properties, which is a real estate investment trust (REIT) that owns the Gold Strike Tunica real estate, will work with Cherokee National Entertainment on a new lease agreement. The transaction is due to close by Q1 next year. The casino company announced the $450m cash sale on Tuesday to Cherokee Nation Entertainment Gaming Holdings, which is a subsidiary of Cherokee Nation Businesses. MGM Resorts International is selling the operations of the Gold Strike Tunica casino in Mississippi.
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