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MGM is Selling the Gold Strike Tunica to Cherokee Nation


MGM Resorts is promoting the Gold Strike Tunica on line casino in Mississippi for $450m to Cherokee Nation. [image: Shutterstock.com]

An all-cash deal

MGM Resorts International is promoting the operations of the Gold Strike Tunica on line casino in Mississippi. The on line casino firm introduced the $450m money sale on Tuesday to Cherokee Nation Entertainment Gaming Holdings, which is a subsidiary of Cherokee Nation Businesses.

as a result of shut by Q1 subsequent yr

The transaction is because of shut by Q1 subsequent yr. VICI Properties, which is an actual property funding belief (REIT) that owns the Gold Strike Tunica actual property, will work with Cherokee National Entertainment on a brand new lease settlement. Meanwhile, the annual rental quantity MGM pays to VICI by its personal grasp lease settlement will drop by $40m upon closure of the sale.

The deal sees the Cherokee Nation increasing its attain exterior of reservation amenities and into industrial gaming alternatives, whereas MGM continues to develop its steadiness sheet similtaneously eyeing different initiatives.

Expanding its attain

Commenting on the acquisition, Cherokee Nation Businesses chief government officer Chuck Garrett stated: “This acquisition will allow us to raised serve our mission of rising the Cherokee Nation’s economic system, whereas additionally having a major constructive affect on the native economies we serve.”

He additionally outlined how the deal will assist the tribe execute on its strategic plan to develop exterior of the Cherokee Nation Reservation. The on line casino accommodates 50,000 sq. toes of gaming house, in addition to over 1,100 resort rooms. It lies roughly 20 miles from Memphis.

Other tribes within the nation are equally seeking to develop into the industrial gaming house. This consists of the San Manuel Band of Mission Indians, which grew to become the primary tribe to personal and function a on line casino on the Las Vegas Strip when it acquired the Palms Casino Resort for $650m in 2021.

In a press release, MGM Resorts CEO Bill Hornbuckle labeled the 32-story on line casino a beautiful property with a vivid future. Suggesting causes for the sale, he stated: “We determined to slim our focus in Mississippi to a single resort, Beau Rivage.”

Two completely different approaches

MGM Resorts has adopted a extra asset-light method to its enterprise in latest occasions, preferring to enter lease agreements as an alternative. As nicely as agreeing to promote the Gold Strike Tunica, it has introduced the $1.07bn sale of the Mirage in Las Vegas, along with its Aria and Vdara resorts.

additionally has 9 different casinos

Meanwhile, the Cherokee Nation is hoping to develop its gaming sphere. As nicely as already proudly owning and working the Hard Rock Hotel & Casino Tulsa, it additionally has 9 different casinos. Other features of the operation embrace resort resorts, a horse racing monitor, golf programs, and varied varieties of retail operations. In complete, Cherokee Nation and its varied companies make use of 11,000 individuals.

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