Inside Gaming: MGM Resorts Acquires Borgata; Sands Settles With Fired CEO

In this week’s installment of Inside Gaming, a big acquisition was announced this week as MGM Resorts International acquires the Borgata, and a six-year long legal battle between the Las Vegas Sands and its ex-Sands China CEO finally ends with a big cash settlement.

MGM Resorts Acquires Borgata, To Expand East Coast Footprint

There was big industry news this week with the announcement that MGM Resorts International has acquired the Borgata Hotel Casino & Spa.

As Forbes reports, the price tag for the acquisition totaled $900 million to be paid to Boyd Gaming Corp. who owns 50% of the Borgata. Minus the payment of current debts, Boyd “estimates that it will gain $600 million by way of the transaction.”

Once the deal is complete, MGM Resorts International will be selling the Borgata to MGM Growth Properties for a reported $1.175 billion, with the latter then planning to lease the Borgata to MGM Resorts for $100 million annually.

Boyd Gaming CEO Kevin Smith told Forbes that while the company have been “pleased with the performance” of the Borgata, “this transaction is an attractive opportunity to immediately unlock significant value for our shareholders.”

The move comes less than two months after Boyd Gaming acquired the Aliante Casino and Hotel in North Las Vegas for $380 million. At the time there was much speculation regarding Boyd’s intention also to acquire another Las Vegas property, Cannery Casino Resorts LLC, and indeed that purchase was made as well shortly afterwards for $230 million.

As Forbes explains, MGM Resorts, currently the largest operator on the Las Vegas strip, now also owns the best performing casino on the Atlantic City boardwalk. The deal also has significance in the online realm, giving MGM a chance to take advantage of Borgata’s license to operate online in New Jersey.

Connections are also being made between the timing of this deal and the recent bailout of Atlantic City by New Jersey lawmakers. Last week in this space we discussed how …

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