MGM Resorts International has reached an agreement to sell Gold Strike Tunica operations to Cherokee Nation Entertainment Gaming Holdings.
The sale to Cherokee Nation Entertainment Gaming Holdings, which is a subsidiary of Cherokee Nation Businesses, is worth around $450 million in cash. The transaction is expected to close in the first half of 2023 and is subject to regulatory approvals and other customary closing conditions.
“I want to thank all of our Gold Strike employees who have consistently delivered world-class entertainment and gaming experiences to our guests,” said MGM Resorts International CEO and President Bill Hornbuckle.
“Gold Strike is a wonderful property with a bright future ahead of it. Strategically, however, we’ve decided to narrow our focus on Mississippi to a single resort – Beau Rivage – and dedicate more time and resources to continuing to drive success at this world-class resort and casino.”
Opened in 1994, Gold Strike was acquired by MGM Resorts in 2005. At 32 stories tall, the tower was reputedly the tallest building in Mississippi when it was built.
Upon closing of the transaction, MGM Resorts’ master lease agreement with VICI Properties, which contemplates Gold Strike, will be amended to reduce annual rent by $40 million.
MGM Resorts International CFO and Treasurer Jonathan Halkyard commented, “This is a great result for the company as we can re-prioritize future investments to opportunities that will improve the customer experience at our other locations.”
Halkyard added: “We thank VICI, as Gold Strike’s real estate owner, working constructively with CNE to facilitate a new lease agreement.”
About MGM Resorts International
MGM Resorts International is a global entertainment company with national and international businesses offering best-in-class hotels and casinos, state-of-the-art meeting and conference spaces, incredible live entertainment experiences, and an extensive array of dining, nightlife and and retail offers.
MGM Resorts creates immersive and iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 29 exclusive hotel and gaming destination offerings across the United States and Macau, including some of the most recognized resort brands in the industry such as Bellagio, MGM Grand, ARIA and Park MGM.
