Mgm Resorts: Sale Of Bellagio & Circus Fix

Mgm Resorts: Sale Of Bellagio & Circus Fix

The MGM Resorts are currently in demand on several “construction sites”. On the one hand, a compensation payment was agreed for the victims of the 2017 rampage, and on the other hand, the plans for their own casino resort in Japan are in an advanced state. The gambling giant, however, needs a lot of money for this – around ten billion US dollars are to be invested in Japan. And this money is now to be flushed into the cashier by the sales of the well-known Bellagio and the Circus Cirucs, among other things.

Circus Circus sold for about 825 million US dollars

For quite some time rumours have been circulating that the MGM Resorts are striving to sell several well-known casino resorts. These rumors were not only officially confirmed now, it was announced at the same time also the aimed sales. One of the desired objects was thereby the Circus Circus. Already 1968 was created the Resort rich in tradition, 2005 went over this into the existence of the MGM Resorts. In the future, however, a new owner, Phil Ruffin, will be responsible for the processes and everyday life. Ruffin is regarded as a real estate tycoon and friend of US President Donald Trump. In addition, Ruffin had already taken over the Treasure Island Resort from MGM Resorts a few years ago.

For the Circus Circus Ruffin has to pay 825 million US dollars for the Circus Circus. However, the US media report a split payment here. Thus 662.5 million US dollars become immediately due, the remaining 162.5 million must be paid only in the year 2024. Ruffin explained that it is pleased to take up the Circus Circus as tradition-rich Casino into its existence. This is considerable and also includes the Trump International Hotel Las Vegas, which Ruffin owns together with the US president. The Forbesliste estimates the fortune of the businessman at approximately 2.7 billion US Dollar. Well possible that this will grow by the Zukauf of the Circus Circus still further.

Bellagio sales: Farewell of a signboard

For far larger headlines in these days in connection with the MGM Resorts however another Deal provided. As it became known, the well-known Bellagio will go into the hands of the hedge fund Blackstone. The company is putting around 4.25 billion US dollars on the table for this and is thus getting one of the best-known hotel resorts on the entire Strip. Already in 1998 Steve Wynn opened the prominent building, which was taken over two years later into the inventory of the MGM group. With more than 3,900 rooms and a casino of over 11,000 square metres, Bellagio is also one of the largest hotels on the Strip. To special admittingness this reached by the film row Oceans , at the same time in addition, by the famous Poker room Bobby’s Room . Here exclusively Highroller are active, which must put for a Buy in at least 20,000 US Dollar on the table.

Betrieben becomes the Bellagio despite the sales however further of the MGM Resorts. The company stressed that the change of ownership had no impact on the operating business. Guests are not affected, no employees have to tremble for their jobs . The reason for the continuation of the operator role is a back lease contract between both companies. The resorts sold the Bellagio, but leased or rented it for an annual amount of more than 245 million US dollars.

Why does MGM sell its casinos?

Some readers may wonder why MGM Resorts sell one of the best known casinos from its own stock. At the same time after the sales also only few land based enterprises remain usual – under it among other things the MGM Grand. The reason for the changes lies in a reorientation of the company. The company stressed that in the last few months it had decided to redirect its own offering . One would like to put stronger focus so particularly on the digitization, also in order to save costs for the enterprise of large Casinos. Additionally the company sees its future in the USA according to own statement particularly in the sport bet range. As early as 2015, MGM Growth Properties LLC, another company, into whose portfolio the casinos have been transferred step by step, was founded. In this way, the parent company would like to increasingly detach itself from the role of the operator. At the same time the financial support is needed in addition, at other place. The approximately five billion US Dollar from the new sales are not to be put under any circumstances on the high edge . Instead the MGM Resort is planning another investment in land-based industry. Now however not in the USA, but in Japan.

Pressure of the shareholders became noticeably larger

In Osaka the MGM Resorts plan a new Casino, for which an investment of well ten billion US Dollar might become due. A little “saved” will have to believe thus in addition to the sales likewise still on it. In addition, the company recently announced that it also wanted to reward its shareholders and would therefore distribute part of its income to them. But this is also urgently necessary, because investors have recently become increasingly critical. Many of them have been calling for a reorientation of the portfolio for a long time in order to be able to compete effectively in digital gambling in particular. Jim Murre, CEO of the Resorts, explained in a statement:

“The transactions increase the strategic and operational flexibility of the company and strengthen its commitment to targeted new growth opportunities, including securing and investing in one of the integrated resort licenses in Japan and developing into an industry leader for sports betting in the United States.”

Clear wording of Murren, which must now be followed by action. Clear is: The resorts are taking a horrendous risk and must now actually deliver in the digital business. If this is not successful, only two stationary resorts, the MGM Springfield (Massachusetts) and the MGM Grand, will remain as “lifelines”. To the best online casinos

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