The sale to Cherokee Nation Entertainment Gaming Holdings, which is a subsidiary of Cherokee Nation Businesses, is for $450 million in cash, subject to customary adjustments. The transaction is expected to close in the first half of 2023, and is subject to regulatory approvals and other customary closing conditions.
“I want to thank all of our Gold Strike employees who have consistently delivered world-class gaming and entertainment experiences to our guests,” said MGM Resorts International CEO & President Bill Hornbuckle.
“Gold Strike is a wonderful property with a bright future ahead. Strategically, though, we decided to narrow our focus in Mississippi to a single resort – Beau Rivage – and dedicate more of our time and resources towards continuing to drive success at that leading, world-class resort and casino.”
Opened in 1994, Gold Strike was acquired by MGM Resorts in 2005. At 32 stories tall, the tower was reportedly the tallest building in Mississippi when it was built.
At the closing of the transaction, MGM Resorts’ master lease agreement with VICI Properties, which includes Gold Strike, will be amended to reduce annual rent by $40m.
MGM Resorts International CFO & Treasurer Jonathan Halkyard commented: “This is a great outcome for the company as we are able to reprioritise future capital expenditures toward opportunities that will enhance the customer experience at our other locations.
“We appreciate VICI, as the real estate owner of Gold Strike, working constructively with CNE to facilitate a new lease agreement.”
