MGM Resorts to sell Gold Strike Tunica in Mississippi for $450m

MGM Resorts to sell Gold Strike Tunica in Mississippi for $450m

Cherokee Nation Entertainment Gaming Holdings, a subsidiary of Cherokee Nation Businesses, has reached an agreement with sports betting and casino behemoth MGM Resorts International to purchase the operations of MGM Resorts International’s Gold Strike Tunica land-based casino in Mississippi for a total price of $450 million (£360 million/€423 million).

Gold Strike Tunica

Agreement to Sell Gold Strike Tunica Operations

MGM Resorts International has stated that it has come to an agreement to sell the operations of Gold Strike Tunica, which is located in Mississippi. 

This news came from the United States. It has come to an agreement to sell the businesses for $450 million in cash to Cherokee Nation Entertainment Gaming Holdings, which is a subsidiary of Cherokee Nation Businesses. It is anticipated that the deal will be finalized during the first half of 2023, provided that it receives the necessary regulatory approvals and meets any other normal closing conditions. The Cherokee Nation is the most populous indigenous group in the United States. It is the owner and operator of the Hard Rock Hotel & Casino Tulsa as well as nine Cherokee casinos, one of which is a horse racing track, three resort-hotels, three golf courses, and several retail enterprises. 11,000 individuals are employed by the Cherokee Nation and its many companies.

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Gold Strike Financial Standings

 

Gold Strike announced a net income of $81.1 million and an adjusted property EBITDAR of $115 million for the year that ended on December 31, 2021. These figures represent the advantages that were realized from various market-specific variables during the course of the previous year. A pre-pandemic report of $67 million in Adjusted Property EBITDAR was submitted by Gold Strike in 2019. Upon completion of the deal, MGM Resorts’ master lease agreement with VICI Properties, which now encompasses Gold Strike, will be revised to cut yearly rent by $40 million. This change will take effect immediately. Following the deduction of taxes and the expected cost of fees, MGM anticipates a net cash flow of roughly $350 million. Both businesses will be able to better fulfill their objective of contributing to the growth of the Cherokee Nation’s economy as a result of this transaction, which will also have a substantial and beneficial effect on the economies of the local communities they serve.

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About Lou De Aguila

Lou Aguila is a contributor to Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.