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MGM Resorts Sells Circus Circus & Bellagio on Las Vegas Strip
Tags: Bellagio, Circus Circus, Jim Murren, Las Vegas, MGM Resorts.
Posted on 17 October 2019 by "T".

MGM Resorts sells Circus Circus for $825 million and the Bellagio for $4.25 billion as it makes its move into the legal sports betting market and also to expand into Japan.

The global casino giant announced on Tuesday they are selling the Circus Circus hotel-casino for $825 million to Phil Ruffin, owner of Treasure Island in Las Vegas.

MGM Resorts International will also sell the Bellagio for $4.25 billion to Blackstone investment group, and the two companies have formed a joint deal to purchase the Bellagio and then lease it back to an MGM subsidiary. MGM will hold a 5% ownership stake in the venture and $4.2 billion in cash, and will continue to run the hotel and casino, which it will rent from Blackstone for $245 million a year.

Both deals are expected to push through by the year's end.

MGM Resorts has been evaluating potential property deals to raise money and pay off debt since its board of directors formed a real-estate committee this January.

MGM Resorts Chairman and CEO Jim Murren said the sale of the two casinos will free up cash, offering MGM the flexibility it needs to operate in new and different ways. He said, "That is a better use of our capital resources than the traditional gaming model. These transactions enhance the company's strategic and operational flexibility and reinforce its commitment to targeted new growth opportunities, including securing and investing in one of the integrated resort licenses in Japan and becoming an industry leader in sports betting in the U.S."

MGM Resorts is aiming to focus on concentrating its position in the legal sports betting market and to expand into Japan.

Japan last year has approved a law, permitting up to three casino-resorts to open in the country, thereby legalizing gambling, making it a juicy venture for global casino operators to pursue licenses there.

Circus Circus opened its doors to the public in 1968 and MGM bought it in 2005.

Casino mogul Steve Wynn opened the Bellagio in 1998, but MGM took the reins in 2000 when Wynn's Mirage Resorts merged with MGM.

MGM Resorts still owns MGM Springfield in Massachusetts, MGM Grand in Las Vegas, 68% stake in MGM Growth Properties, and a 50% stake in CityCenter in Las Vegas.

The shares of MGM went up modestly after-hours. To date, its shares have climbed almost 15%.

Source:
https://www.wsj.com/articles/mgm-resorts-to-sell-bellagio-circus-circus-properties-in-las-vegas-11571172084

 

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16 comments on "MGM Resorts Sells Circus Circus & Bellagio on Las Vegas Strip"


 dule-vu17/10/2019 11:24:18 GMT
when you see numbers that somebody can spend on some casino,you can imagine how much they will earn after that and what profit will make!probably this can only be sold by this prices in america,especially in las vegas!to see that bellagio worth 4,25 billion,for me is just insane,no matter that we know how popular is he!
 Nightkid17/10/2019 11:37:03 GMT
good to see such a sum of money makes me go crazy hahaha but good if they see benefit in selling it and investing that money is fine I think, I also see that they plan to expand and go to Japan so I see that there will also have good profits if they decide to put something there so lucky with it Cool Cool Cool
 shokaku17/10/2019 17:59:47 GMT
"Industry leader in sports betting in the US" Didn't we just had a merger in the online industry, that aimed at exactly the same thing? Someone will end up a bit disapointed when the betting market in the US will be carved up between the competing companies.
 CALICUL18/10/2019 11:29:03 GMT
It is a very ambitious and courageous decision, but i do not know if in Japan, they will have profits like in America. Something happened here or maybe the owner just wants to move to another part of the world. 5 billion and a little is a very good price for what they sold.
 dule-vu18/10/2019 11:55:40 GMT
Didnt know that circu circus is that old,41 years!when you have brand like that for so many years,that must have good price!bellagio is maybe most famous and thats why he have big price!who know what are reasons for this sale!
 levi981218/10/2019 12:34:55 GMT
wow what a deal! :0 but i guess it is worth it, becuase the online gambling industrie is thriving right now. linvest in a gamble compagny is a save bet, some might say Blink circus is a well estabelisted brand in belgium etc.. they also got a online casino site, where you can get a nice no deposit bonus. the only dissapointing thing is that if you where a little bit to late on the verification, they will block you instantly!
 bowie198418/10/2019 21:31:34 GMT
Posted by shokaku:
"Industry leader in sports betting in the US" Didn't we just had a merger in the online industry, that aimed at exactly the same thing? Someone will end up a bit disapointed when the betting market in the US will be carved up between the competing companies.

Gambling just going mainstream with legislations in almost every individual state to legalize it at some form (besides to native american casinos everywhere), sportsbetting will have a huge boom in the US for the next decade.
There will be a lot of different industry leaders coming out of that soon.
 likesithere19/10/2019 18:33:56 GMT
do you think they will knock down C.C. and rebuild as it looks and feels tired also all the rooms smell of smoke even the non smoking ones. then it can become one of the better places to arrive at.
 CALICUL19/10/2019 21:04:57 GMT
I read right here about Las Vegas casinos that will be renovated and of course, they have money for this. You can't let the smell of cigarettes to persist and the old-fashioned decor to remain unchanged. It's good when you renovate and it's good for everyone. In this business, the design is pretty important and the new owner will earn nice money in future.
 bowie198419/10/2019 21:30:37 GMT
Posted by likesithere:
do you think they will knock down C.C. and rebuild as it looks and feels tired also all the rooms smell of smoke even the non smoking ones. then it can become one of the better places to arrive at.

They don't have to knock down a building just to make sure you can't smell cigarettes anymore, but the Strip is in complete rebuilding every other decade so who knows.
Bellagio is too iconic just to knock it down anyway.
 dule-vu20/10/2019 08:51:43 GMT
yeah,it will be strange that they will do everything just because of smell of cigarettes (if they even smell on that) and to build everything from start!they buy name and they can just make something better,not to destroy and completely change look of casino,especially outside!
 Mober20/10/2019 11:17:34 GMT
Always big games within the casino industry. Especially when it comes to
casinos and resorts of this magnitude.
And of course the bellagio is world known, so the sell out price would have been
astronomical either way Smile
With such resorts, it wont take them too long to get their investment back.
 CALICUL22/10/2019 08:26:50 GMT
I think it's very sad to sell a casino that has made history and is known all over the world. A lot of celebrities were here, professional players, winners, gamblers and curious people who visiting. It is interesting who will buy this Casino and how he will develop the new strategies.
 dule-vu22/10/2019 12:25:42 GMT
Would be nice to go just one time in las vegas and to see this great casino resorts!but till they have visa for USA and I need to lose whole day and to go in capital town on interview,I will not go there!but to come justa for one day in las vegas will be something special!
 Nightkid22/10/2019 12:34:06 GMT
and well if it is true that going only 1 day there would not be much fun, but I think that the experience of being able to go and enjoy it is not taken away by anyone hahaha I would like to go one day but if you need money and also for a while that if you are single because if you have a wife and you are going to want to kill lol Tongue Tongue Tongue
 dule-vu22/10/2019 12:39:33 GMT
For one day you still have time to enjoy,to drink,to gamble,you can visit lot of thing and to go home!ofcourse for this kind of city,seven days isnt enough,but who wouldn except just one day in las vegas!its not about money,its about their rules about visa!

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