Gold Strike is a popular casino in Tunica that was established in 1994 and purchased by MGM Resorts in 2005. With its casino, sportsbook, hotel, shops, nightclubs, and restaurants, Gold Strike Tunica offers a wide range of entertainment options. For the twelve months ending on December 31, 2021, Gold Strike recorded a net income of $81 million and adjusted property earnings before interest, tax, depreciation, amortization, and rent (EBITDAR) of $115 million. The acquisition of Gold Strike by MGM Resorts is expected to be finalized in the first half of 2023, pending regulatory approvals and customary closing conditions.
If the deal goes as planned, MGM Resorts’ lease agreement with Vici Properties, which currently includes Gold Strike, will be revised and result in a $40 million reduction in annual rent. This transaction is anticipated to bring net cash proceeds of approximately $350 million for MGM Resorts after taxes and estimated fees from the sale.
MGM Resorts International’s CEO and President, Bill Hornbuckle, expressed gratitude to the Gold Strike employees for consistently providing exceptional gaming and entertainment experiences to guests. He also stated that while Gold Strike is a remarkable property with a promising future, MGM Resorts has decided to focus their efforts on a single Mississippi resort, Beau Rivage, in order to drive further success.
Cherokee Nation Businesses’ CEO, Chuck Garrett, expressed excitement about expanding their gaming and hospitality business outside of the Cherokee Nation Reservation through their strategic growth plan. As part of the agreement, Vici will establish a new lease with Cherokee Nation Businesses, involving a base annual rent of $40 million and similar economic terms to the existing MGM Master Lease. This lease would span 25 years, with three 10-year tenant renewal options.
Vici’s President and CEO, John Payne, highlighted the company’s ability to foster strong relationships with new partners and collaborate with existing tenants to support their strategic goals. He welcomed Cherokee Nation Businesses as Vici’s ninth gaming tenant and looked forward to a long-term partnership as they pursue further growth initiatives.
