The deal is subject to regulatory approvals and is expected to close in the second quarter of 2023. “We appreciate VICI, as the real estate owner of Gold Strike, working constructively with CNE to facilitate a new lease agreement.” “This is a great outcome for the company, as we can reprioritize future capital expenditures toward opportunities that will enhance the customer experience at our other locations,” said Jonathan Halkyard, CFO and Treasurer, MGM Resorts International. The $450 million sale price indicates an 11 times valuation of property EBITDA from 2021. To complete the Gold Strike sale, VICI agreed to reduce the annual rent payment on the property by $40 million. “Strategically, though, we decided to narrow our focus in Mississippi to a single resort, Beau Rivage (in Biloxi on the Gulf Coast), and dedicate more of our time and resources to continuing to drive success there.”Ĭomplicating the sale a bit was the ownership of the real estate by VICI Holdings, which recently closed on the sale of MGM Growth Properties. “Gold Strike is a wonderful property with a bright future,” said MGM Resorts CEO Bill Hornbuckle. At the time, the 32 story building was the tallest building in Mississippi.įor MGM, the sale of the property was a shedding of a secondary, but successful, asset. Gold Strike Tunica was built in 1994, one of the second wave of Tunica casinos built in a region closer to Memphis, Tunica’s principal market, that includes the Horseshoe casino. “We are excited for the team at Gold Strike Tunica to join the CNE family.” “Cherokee Nation Entertainment has a rich history of operating award-winning hospitality destinations in Oklahoma, and we are proud to continue our growth in gaming and bring the level of excellence we are known for to the Tunica area,” said Mark Fulton, president of Cherokee Nation Entertainment (CNE). The tribe owns and operates Hard Rock Casino Hotel in Tulsa and nine other tribal gaming enterprises across the state. It’s the first gaming venture outside of Oklahoma for the tribe and its first investment in commercial gaming. A subsidiary of the CNB, Cherokee Nation Entertainment Gaming Holdings, will pay $450 million for the 1,100 room property, with a 50,000 square foot casino. “We are looking forward to the new opportunities for providing a world-class experience to all of our patrons and continue leading the industry in our region.Cherokee Nation Businesses based in Oklahoma, last week revealed it had reached an agreement with MGM Resorts to buy Gold Strike Tunica, the only casino the company owned in the northern Mississippi market. Our plan is to build on that and exceed those high expectations every day,” said Max Fisher, general manager of Gold Strike. “Patrons of Gold Strike have become accustomed to the excitement and southern hospitality they receive when they walk through our doors. “We’re looking forward to sharing that commitment with the people of Mississippi by also investing in their communities and contributing to the local economy.”Ĭurrent and future guest reservations are being honored, and the Gold Strike Casino will continue to offer its longtime dinner staples. Building our business outside of Oklahoma is a huge step that strengthens our ability to boost the Cherokee Nation economy while also building on our reputation of being a strong community partner and industry leader,” said Chuck Garrett, president and chief executive officer of Cherokee Nation Businesses. “This acquisition is a natural evolution for our company. The casino is located on the Mississippi River, about 30 minutes south of downtown Memphis.ĬNB says operations will continue as usual, and all employees dedicated to the casino were retained. Concurrent with the purchase, the operating entity entered into a long-term lease agreement with GSCR Propco LLC, a subsidiary of VICI Properties Inc., which owns the real property associated with Gold Strike Casino Resort. The Mississippi Gaming Commission determined the suitability and approval of the acquisition in January. We are excited to invest in this beautiful property and bring our three decades of industry experience to guests in the Mid-South market.”ĬNE Gaming Holdings LLC bought the operating company from Mandalay Resort Group LLC, a subsidiary of MGM Resorts International for approximately $450 million in cash. “For years, we’ve set the standard of excellence in gaming. “This is a historic day of growth for our hospitality portfolio as we enter the commercial gaming industry, and we welcome the wonderful team at Gold Strike to the family,” said Mark Fulton, president and chief operating officer of Cherokee Nation Entertainment.
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