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Nevada Regulators Authorize Circus Circus Acquisition
December 29, 2019 TamaraTam
Acquisitions have been one of the main topics in Las Vegas over the previous years. In such atmosphere it is very difficult to say what belongs to who and what are the plans of casino operators. One of the recent steps has been made by MGM Resorts International which has left several of its properties and Nevada Gaming Commission has approved the last one. Phil Rufin is going to become the owner of MGM facility Circus Circus.
Casino acquisitions and mergers are happening all the time and it could be seen as a circus to a certain extent. However, the owner of the Treasure Island Hotel and Casino believes that Nevada Gaming Commission and now we wait for $825 million to come to realization.
About the Deal
MGM and Phil agreed on the purchase of the Vegas Strip Venue and Ruffin will need to pay $662.5 million to complete the agreement. Meanwhile, MGM is ready to issue the note in the value of $162.5 million which should be due during 2024. Taking into consideration present standards, the costs of the note should be about $111 million.
Over the past years, MGM didn’t use the Circus Circus space in a useful way and this is something which should be corrected in the following period. At the moment, there is a 20.000 square foot of unused space on the second floor of the building. Ruffin had informed the Nevada Gaming Authority that space should be used in a better way. One of the possible ways to use the property is for bingo hall purposes.
There are also plans for Las Vegas Festivals Ground which is located on 40-acre Strip land. At the moment, the land is used for conventions and concerts. The venue also includes a stage for around 80.000 fans. According to the speculations, there were plans for taking the land from Ruffin’s hands but he denied the possibility. Ruffin still believes in the positive perspective of the land.
Meanwhile, MGM continues to save financial means and property is getting rid of some venues. The last steps of the operator were connected with dropping several venues including Bellagio and MGM Grand while Mandalay Bay in Vegas will be removed soon. There is also a possibility that the MGM Springfield will be unloaded given its weak results over the past period. The property used to have the lowest possible figures in this past November.
Source:
“Nevada gaming regulators say yes to Circus Circus sale“, Erik Gibbs, calvinayre.com, December 20, 2019.
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