There has been a lot going on in Las Vegas as owners are switching properties almost every next week. Gambling and hospitality giant MGM Resorts International has been offloading some of its properties as the operator is planning to secure funds through proceeds.
Recently, the Nevada Gambling Commission approved MGM’s sale of its Circus Circus property. Phil Ruffin, a real estate tycoon will now be the new owner of the Circus Circus casino property.
The Gmabling regulator approved the $825 million deal and allowed the Treasure Island owner to acquire one more property in Las Vegas.
The two operators announced the deal earlier in October. However, it was subject to regulatory approval.
According to the deal, Phil Ruffin will pay $662.5 million in cash. Moreover, MGM Resorts is bloating a note worth $162.5 million, which will be due in 2024.
The Circus Circus property is massive. It hosts a 20,000-square-foot on the second floor which is abandoned and serves no purpose. MGM hadn’t been able to make good of the space. However, the new owner of the property has said that he might open a bingo hall and put the hall to the purpose.
Ruffin will also get the Las Vegas Festival Grounds as a part of the deal. It is a 40-acre plot of land on The Strip which can be used for outdoor concerts as it hosts a permanent stage and can accommodate about 80,000 people. While the billionaire Ruffin had offers for the property he believes it would be better to keep it.
MGM Selling Properties
MGM is selling its properties to keep its liquidity intact. The gambling giant is vying for a casino license in Japan and is one of the top contenders for a casino license in Osaka.
MGM has already announced the sale of its Bellagio Hotel & Casino on the Las Vegas strip, for $4.25 billion.
It is also planning to offload its Springfield casino in Massachusetts.