MGM Resorts has announced that it closed the sale of the operations of the Gold Strike Tunica property in the US state of Mississippi for $450 million in cash.
MGM Resorts’ CFO notes that the company plans to use the proceeds from the deal to “further fortify our balance sheet, deploy capital to growth opportunities and return capital to shareholders”.
The sale of the operations of the property will also cause a drop in MGM’s rental costs under property giant VICI Properties, reducing MGM’s annual rent by $40 million,
Net proceeds from the sale, after taxes and fees, are estimated to be approximately $350 million.
For the 2022 year, Gold Strike reported net income of $47 million and adjusted property EBITDAR of $98 million.
Gold Strike’s operations have been acquired by a subsidiary of the Cherokee Nation Business – CNE Gaming Holdings.
CNE Gaming had announced plans to purchase the operations rights to the 50,000 square foot casino in June of 2022.
The property features 1,100 rooms, 125 suites, high-limit gaming, sportsbook and conference and convention center.
At the time of the announcement CEO of Cherokee Nation Business, Chuck Garrett, noted that “We look forward to expanding our gaming and hospitality businesses as we execute on our strategic plan to grow our footprint outside of the Cherokee Nation Reservation”.
