MGM Resorts Incorporated is one of the global leaders in the entertainment and hospitality industry. The company was founded thirty-four years ago by Kirk Kerkorian. Today, this Nevada-headquartered company-operates luxurious resorts in New Jersey, Las Vegas, Mississippi, Detroit, and Maryland including its iconic Park MGM, Mandalay Bay, Bellagio, and MGM Grand.

Back in January of 2019, MGM Resorts Incorporated finalized taking over of the Empire City Casino venue located in Yonkers, New York. Moreover, the company also operates MGM National Harbor located in Maryland as well as MGM Springfield located in Massachusetts.

One of the global leaders in one of the most profitable industries also has a majority interest in the MGM China Holdings Limited company which is responsible for the flagship MGM Macau casino and resort. Furthermore, MGM Resorts Incorporated also owns fifty percent of Las Vegas CityCenter that includes Aria Resort and Casino.

Lease-Back Agreements for Mandalay Bay and MGM Grand

The company which was founded over thirty-four years ago as MGM Grand Inc. became MGM Mirage twenty years ago when it acquired Mirage Resorts. Back in the mid-2000s, the company’s growth of its retail, food, lodging, and other non-gaming revenues started to outpace demand for such condominiums. At this point, the company’s officials decided to shift its main focus from operating and owning casinos and resorts to building and developing real estate in the gaming and leisure company.

The very mixed-use project launched after the company shifted its focus was CityCenter that at the time was the biggest construction site of this kind in the world. It is also the most expansive project in the real estate industry. When it comes to the company’s flagship properties, these are definitely its Bellagio Las Vegas facility, Mandalay Bay, Park MGM, and MGM Grand.

As reported not so long ago in October last year, the company inked a lease-back business agreement for its iconic Bellagio Las Vegas venue while several days ago it announced the inking of a similar lease-back deal which this time covers two of its Las Vegas-based venues including Mandalay Bay Resort Casino and MGM Grand Las Vegas.

The Las Vegas-based company used its official press release from several days ago to share more details including that these lease-back agreements for its Las Vegas facilities involve the Blackstone Real Estate Income Trust Incorporated company as well as its own real estate investment trust MGM Growth Properties. The two entities will pay around $4.6 billion to take over the proposed leases for Mandalay Bay Resort Casino and MGM Grand Las Vegas.

Bellagio Brought in $4.2 Billion with Its Lease-Back Agreement

As revealed by the company’s officials earlier this year, the previous lease-back agreement for its iconic Bellagio Las Vegas venue brought in around $4.2 billion. At the time, the company also decided to offload its Circus Circus Las Vegas venue to the owner of the Treasure Island Las Vegas for around $825 million.

Commenting on the news about the two most recent lease-back agreements for Mandalay Bay and MGM Grand Las Vegas, CEO, and Chairman of MGM Resorts said that its company’s agreement with MGM Growth Properties and Blackstone Real Estate Income Trust Incorporated will see this pair form one joint venture to purchase shares in MGM Resorts Incorporated of Class A which are worth around $150 million. He also added that this new business venture will also lease Mandalay Bay and MGM Grand Las Vegas to their former owner for a beginning rent worth $292 million.

The boss for one of the biggest USA-based casino operators, MGM Resorts has announced that his company is currently working on developing an asset-light business strategy that could see the company offloading its MGM Grand Las Vegas facility. According to one report released by the Las Vegas Review news outlet, this revelation was made by the company’s CEO and Chairman Jim Murren.

As reported, the Las Vegas-based company’s officials had already a meeting with several of the company’s investors where they have discussed the MGM Resorts International’s third-quarter finances among other subjects including contemplating more casino sales. Just last month, this Las Vegas-based giant inked a crucial, thirty-year lease deal which saw MGM Resorts International sell its Bellagio Las Vegas venue.

Selling Bellagio Las Vegas

The three thousand and nine hundred-room Las Vegas facility was sold to one Blackstone Group LP for around $4.2 billion. The selling of its Bellagio Las Vegas venue was prefaced by a very similar $825-million worth business arrangement for the company’s Circus Circus Las Vegas facility which is located nearby Bellagio. As reported by Jim Murren, these financial transactions will be used by his company as crucial blueprints for any other future arrangement of this kind which may relate to its Aria Resort and Casino and MGM Grand both located in Las Vegas.

Such future arrangements also encompass the company’s Vdara Hotel and Spa as well as its MGM Growth Properties and MGM Springfield ventures. The company’s CEO and Chairman Jim Murren said that the company’s latest financial transactions were crucial steps for the company’s new future which does not mean the end for MGM Resorts International.

In his official press release, Mr. Murren said that the company’s Bellagio Las Vegas transaction actually represents much more for his company than a simple, very smart financial decision. He said that it provides a great blueprint for the company’s future deals of this kind. He also added that the company’s process related to monetizing its real estate for the MGM Grand Las Vegas facility is underway while more details on this will be shared soon.

Focusing on Future Casino Sales

According to the company’s boos, the majority of the MGM Resorts International’s proceeds from any upcoming casino sales would be generated to fully support the firm’s already envisioned global rollout of gaming activities including sportsbetting as well as the company’s plan to construct and operate a fully integrated casino resort in Osaka.

Jum Murren also told news outlets that for his company, developing an asset-light business strategy means separating the company’s ownership of lower-return and capital-intensive assets and finally recycling this particular capital into some higher return on its future investments. On the other hand, several newspapers reported that the most recent company’s sale of its Circus Circus Las Vegas venue had put MGM Resorts International into a massive dent.

It was detailed that the company’s third-quarter combined earnings recorded a massive $37 million deficit when compared to the same period last year which has brought a great nine percent increase in generated revenues which amounted to around $3.3 billion. However, the company’s boss described these numbers as in line with the MGM Resorts International’s earlier projections and as solid. He finished his press release by saying that his company would definitely enjoy a brighter financial report for the next fourth-quarter period thanks to its upcoming entertainment offerings.

One of the most reputable casino operators in the United States, MGM Resorts Limited has agreed to sell its landmark Bellagio Las Vegas property to one private equity company, Blackstone Group LP. MGM Resorts International is a global entertainment and hospitality company that operates a number of luxurious resorts in Detroit, Mississippi, Las Vegas New Jersey, and Maryland.

These include Bellagio, MGM Grand, Park MGM, and Mandalay Bay. The company also has a majority stake in the MGM China Holdings Limited company as well as in MGM Growth Properties. When it comes to its Bellagio Las Vegas facility, it is located on the Las Vegas Strip. The luxurious property opened its doors more than twenty years ago in October of 1998.

The Bellagio Las Vegas Hotel and Casino was built on the demolished property of Dunes Hotel and Casino. The facility is inspired by the stunning Lake Como in Bellagio, Italy. It is famed for its remarkable elegance and of course, its notable features including a massive, eight-acre lake which is situated between the Strip and the main building. The property also has a stunning dancing water fountain, as well as loads of other notable features.

MGM Resorts International to Receive a Cash Infusion

As it was reported by the company’s officials several days ago, the facility’s owner MGM Resorts Limited will soon receive a massive cash infusion equaling around $4.2 billion as the company’s officials agreed to sell its Bellagio property to Blackstone Group LP earlier this month. The first rumors regarding this move surfaced in September following the MGM Resorts International’s decision to offload its famed Circus Circus Las Vegas property to a private entity that is fully controlled by the individual who also controls the Treasure Island Las Vegas facility.

According to the Las Vegas Journal, this latest lease-back business agreement between MGM Resorts International and Blackstone Group LP will see the Las Vegas-based company continue to manage all operations within the Las Vegas facility. It should be noted that Bellagio Las Vegas is one of the most profitable facilities of this kind in Nevada. In order to remain managing operations within the facility, MGM Resort International agreed to pay an annual rent of around $245 million.

Novomatic Acquiring Casino Rivera in Slovenia

In the meantime, another reputable casino operator has expanded its business operations. As it was reported several days ago, Austria-based company Novomatic has just acquired Casino Rivera located in Portorož, Slovenia. With this move, the company brought the number of fully licensed casinos that it owns and operates in this European country to nine. The latest Novomatic purchase was revealed by the Delo and Dnevnik daily newspaper.

The Rivera Hotel and Casino facility is located on the Adriatic coast. Currently, the casino floor offers more than one hundred and eighty gaming positions including electronic roulette games, slots and more. Before this move, Novomatic has expanded its Slovenia-based holdings in June as well after acquiring Casino Princess which was partially owned by the Princess Group International company.

Moreover, over the past several years the Gumpoldskirchen-based company has also acquired many other facilities including Casino Lev located in Ljubljana, and Kongo Casino located near Grosuplje. The Austria-based company also manages luxurious gaming parlous including Casino Joker located in Maribor and Casino Tivoli situated in Lesce along with hotels and casinos in several other Slovenian cities.

Novomatic is one of the biggest gaming technology firms in the world owned by Johann F. Graf who established this gaming behemoth back in 1980. Today, this international company employs over 30,000 individuals in more than fifty countries.

As it was reported by several news outlets, the MGM Resorts International is talking to the Blackstone Group Inc. about selling the iconic MGM Grand resort and equally iconic Bellagio hotel and casino located on the Las Vegas Strip. The Blackstone Group Inc. firm is a fully private American equity that specializes in financial services and asset management. The company is based in New York City where its hedge fund, credit, and private equity investment strategies come to life.

The Blackstone Group Inc. was founded thirty-four years in 1984. Shortly after its establishment, the American company became one of the biggest investors when it comes to leverages buyouts and it has managed to preserve this reputation in the last decade as well. As one of the biggest investors in the last years, Blackstone Group Inc. has acquired a number of commercial real estate.

Moreover, since its beginnings, the company has also invested in several notable firms such as Travelport, Vivint, Freescale Semiconductor, United Biscuits, AlliedBarton, Republic Services, EQ Office, Performance Food Group, Merlin Entertainment Group, and Hilton Worldwide. The company’s founders Mr. Schwarzman and Mr. Peterson used to work at Lehman Brothers before deciding to found Blackstone together.

Becoming a Publicly-Traded Company in 2007

Back in 2007, the Blackstone Group Inc. became a publicly-traded company via a massive $4 billion-worth initial public offering. Soon, the company became one of the major privately-owned equity companies to have its shares listed on the public stock market. In addition to its main office located in New York City, the company also has offices in Paris, London, Dublin, Dubai, Shanghai, Tokyo, Singapore, Luxembourg, Mumbai, Sydney, Hong Kong, and Düsseldorf.

As estimated in 2019, the Blackstone Group Inc.’s total assets under its management were around US$470 billion. When it comes to the biggest investments of the company, the Blackstone Group Inc. acquired a number of notable companies during the massive buyout in 2006.

In fact, the company completed some of the biggest leveraged buyouts with several transactions that stand out such as the acquirement of Tele-Denmark Communications alongside several other companies, EQ Office purchased for around $37 billion, Michaels for around $6 billion, Nielsen Holdings, Orangina, and Biomet for $10 billion among many other notable transactions.

MGM Resorts Looking Forward to Lease or Sale Deals for Its Iconic Properties

As reported two months ago, one of the biggest and most reputable resort operators on the Las Vegas Strip, MGM Resorts International is currently looking for ways to unlock value for some of its high-end real estate properties including its MGM Grand and Bellagio resorts. The company’s official press release states that the company is pursuing leaseback or sale deals which would see its MGM Grand and Bellagio real estate properties being sold while the company will remain managing attractions including the gaming operations within the aforementioned luxurious properties.

One of the companies extremely interested in these deals is the Blackstone Group Inc. Many experts believe that selling those two high-end, highly desirable Las Vegas Strip real estate assets could easily result in price tags of $7 billion. The company’s interest in Las Vegas properties came for the first time six months ago when the Blackstone Group Inc. showed its interested in acquiring the Cosmopolitan on the Las Vegas Strip. Hence, there is no surprise in the fact that the Blackstone Group Inc. is now mulling on sales of Bellagio and MGM Grand to expand its growing presence on the Strip.

As reported several days ago, one of the major plans for the city of Brockton in the state of Massachusetts which would see the city hosting a luxurious, $677 million-worth hotel and casino suffered another huge setback this time by Massachusetts’ gambling regulator. Despite these emerging issues, the city of Brockton hopes to see the first resort and casino facility constructed and opened sometime in the near future.

According to one report released by The Enterprise newspaper, the state’s Gaming Commission has ignored loads of cajoling from one of the leading casino and resort operators Mass Gaming and Entertainment. It was also reported that the Massachusetts Gaming Commission officials have also ignored cajoling from Massachusetts’ major Moises Rodrigues by deciding not to revisit its previously made decision which saw the Plymouth Country project being rejected its gaming license.

The First Proposal Revealed in 2015

The newspaper also reported that the giant Mass Gaming and Entertainment had hoped to be finally given all necessary permissions to construct and operate its brand-new gambling and resort facility on the city’s former Brockton Fairgrounds property. Mass Gaming and Entertainment is managed by billionaire real estate and casino magnate, Mr. Bluhm who also serves as the Rush Street Gaming Chairman.

His company has partnered with businessman Mr. Carney in order to bring their new gambling facility to the city of Brockton. Their very first proposal for the new facility on the city’s former Fairgrounds property came back in 2015. However, soon later it was rejected partly due to its very close proximity to another already planned venue of the same kind, the First Light Resort, and Casino owned by one of the federally-recognized tribes Mashpee Wampanoag.

The same newspaper also reported that a court decision regarding the property planned for the First Light Resort and Casino has made it very unlikely that this $1 billion-worth resort and casino facility will be ever constructed. Naturally, Mass Gaming and Entertainment was extremely hopeful that these new circumstances alongside the company’s fully revised plan regarding its Brockton casino and resort project would somehow sway the state’s Gaming Commission into revising its previously made decision to reject the company’s proposal.

The Massachusetts Gaming Commission Granting Gaming Licenses to the MGM Resorts

The newspaper also revealed that the state’s gambling regulator had previously granted gaming licenses to another big player in the industry, MGM Resorts International for its $966 million-worth MGM Springfield facility. The Massachusetts Gaming Commission had also granted necessary gambling licenses to the Encore Boston Harbor venue owned and operated by the Wynn Resorts Limited company.

The MGM Springfield casino and hotel complex located in the very hearts of Springfield opened its doors to the public back on the 24^th of August 2018. This is actually the very first facility of this kind to be opened in the Commonwealth. The Encore Boston Harbor casino and luxury resort situated in Everett opened on the 23^rd of June, 2019.

When it comes to the state’s gaming regulator’s further steps, it has envisioned to authorize brand-new venues of this kind for its southeastern properties. However, the regulator was definitely unmoved by the most recent attempt by Mass Gaming and Entertainment to get the necessary licenses for its planned Brockton facility. The company was told by that the regulator’s officials that they are not unimpressed by the company’s proposed facility’s design, but they fear that the market will get oversaturated.