MGM Resorts International is selling Gold Strike Casino

MGM Resorts recently announced that it is selling the operating rights of its Tunica property – Gold Strike casino and hotel to Cherokee Nation Entertainment Gaming Holdings for a total amount of 450 million dollars in cash. The deal is expected to close by mid-2023.

On the agreement, Bill Hornbuckle, the CEO of MGM, said that Gold Strike is an amazing property with a bright future. He also pointed out that the decision to sell the casino resort was because they needed to focus more on their Mississippi property – the Beau Rivage.

Gold Strike first opened its doors in 1994. But it was acquired by MGM Resorts in 2005. The purchase was part of the $7.9 billion acquisition plan of the Mandalay Resort Group. The purchase agreement also brought Excalibur, Luxor, Mandalay Bay, Slots-A-Fun, and Circus Circus into the MGM umbrella. Note: the corporation has since parted ways with Slots-A-Fun and Circus Circus casino resorts.

Although Mississippi’s gambling industry cannot be compared to Las Vegas’ Gold Strike resort has performed well in the past. In fact, it garnered a net income of $81 million and an Adjusted Property EBITDAR of $115 million. In 2019, before the Covid-19 pandemic, the casino hotel had an EBITDAR of $67 million.

This is not the first time MGM Resorts has sold its property’s operating rights. Last year, the company announced that it would be selling the Mirage’s operating rights to Hard Rock International for $1.075 billion.

The third-party involved in the sale agreement is VICI Properties – which houses the Gold Strike casino hotel. Cherokee’s lease agreement was agreed to be reduced by $40 million.

About Cherokee Nation Entertainment

Based in Oklahoma, Cherokee Nation Entertainment is a hospitality and gaming company. It is part of the Cherokee Nation, a tribal business that owns the Hard Rock casino resort in Tulsa. It also operates nine Cherokee casinos, including three resorts, three golf courses, and a horse racing track.
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