MGM Agrees To Sell Operations Of Mississippi Gold Strike CasinoCherokee Nation Entertainment Gaming Holdings Is The Purchaser |
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MGM Resorts International on Thursday announced that it has reached an agreement to sell the operations of a casino in Mississippi.
Gold Strike Tunica will be acquired by Cherokee Nation Entertainment Gaming Holdings, LLC, a subsidiary of Cherokee Nation Businesses, for $450 million in cash.
“I want to thank all of our Gold Strike employees who have consistently delivered world-class gaming and entertainment experiences to our guests,” said Bill Hornbuckle, CEO & President, MGM Resorts International. “Gold Strike is a wonderful property with a bright future ahead. Strategically, though, we decided to narrow our focus in Mississippi to a single resort [with] Beau Rivage.”
In 2021, Gold Strike reported net income of $81.1 million, MGM said.
“This is a great outcome for the Company as we are able to reprioritize future capital expenditures toward opportunities that will enhance the customer experience at our other locations,” said Jonathan Halkyard, CFO & Treasurer, MGM Resorts International. “We appreciate VICI, as the real estate owner of Gold Strike, working constructively with CNE to facilitate a new lease agreement.”
Gold Strike opened in 1994 and was acquired by MGM Resorts in 2005. When it was built the gold tower was reported to be the tallest building in Mississippi.
The transaction is expected to close in the first half of 2023.
According to figures from the American Gaming Association, the Mississippi casino market saw $2.67 billion in gambling revenue in 2021, up 48.7% over 2020 when casinos were forced to close due to COVID-19.
The state has 29 casinos in total, according to the AGA.
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