MGM selling Gold Strike Hotel & Casino

MGM Resorts International has announced they are selling the operating rights to the Gold Strike Hotel & Casino in Tunica, Mississippi to Cherokee Nation Entertainment Gaming Holdings LLC. The deal is reportedly for $450 million in cash.

Upon announcement of the sale MGM CEO Bill Hornbuckle said in a statement, “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 — Beau Rivage — and dedicate more of our time and resources towards continuing to drive success at that leading, world-class resort and casino.”

Gaming real estate investment trust VICI Properties is also involved in the deal as the owner of the Gold Strike Hotel & Casino’s real estate. MGM was leasing the property from VICI and that lease will now be transferred to Cherokee Nation Entertainment. Under the lease agreement Cherokee Nation Entertainment receives a 25-year term on the lease of the real estate with three 10-year renewal options.

The Gold Strike opened in 1994 and was originally acquired by MGM in 2005 as part of a larger $7.9 billion acquisition of Mandalay Resort. MGM also acquired Mandalay Bay, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in Las Vegas in that deal. MGM previously sold Circus Circus and Slot-A-Fun to Phil Ruffin in 2019.

Gold Strike is one of 29 commercial casino operating in the state of Mississippi. According to MGM the Gold Strike reported $81.1 million in net income in 2021.

Barring regulatory approval the deal is expected to close in the first half of 2023.