Connect with us
SIS

Gambling in the USA

MGM Resorts International And MGM Growth Properties Complete Transaction To Acquire Empire City Casino In Yonkers, New York

George Miller

Published

on

MGM Resorts International And MGM Growth Properties Complete Transaction To Acquire Empire City Casino In Yonkers, New York
Photo Source: cbslocal.com
Reading Time: 5 minutes

 

MGM Resorts International and MGM Growth Properties LLC announced that they have completed the transactions for the acquisition of Empire City Casino in Yonkers, New York (“Empire City”). Following MGM Resorts’ acquisition of Empire City for approximately $850 million, MGP acquired the developed real property from MGM Resorts for approximately $625 million and leased it back to a subsidiary of MGM Resorts that will operate the property.

“We are pleased to welcome the 1,200 employees at Empire City Casino to the MGM Resorts family,” said Jim Murren, Chairman and CEO of MGM Resorts. “Over the past three years, we have established a meaningful presence in the northeast with Borgata in Atlantic City, MGM National Harbor in Maryland, and MGM Springfield in Western Massachusetts. With this new addition to the MGM Resorts portfolio, we have now gained a foothold in the high-density New York City region and we look forward to leveraging the MGM platform to maximize value in this evolving marketplace.”

“What’s incredibly exciting is the amount of opportunity MGM Resorts will bring to the employees at Empire City, as well as Westchester County, the city of Yonkers, and the State of New York,” said Timothy J. Rooney, President and CEO of Empire City Casino. “With destinations throughout the world, from resorts to casinos to entertainment, MGM has a tried-and-true formula for success. They know how to build and grow properties that continually raise the bar in entertainment, travel, and leisure, and we are so thrilled to leave Empire City in MGM’s capable hands. What’s more, the potential for growth at Empire City has absolutely no boundaries. MGM will truly provide Empire City employees and the property’s guests with the resources and opportunities to make the casino and track into something we haven’t even yet realized. I cannot wait to see what’s to come!”

“Today, we continue to expand MGP’s best-in-class portfolio with the acquisition of the real estate assets of Empire City, expanding our geographic footprint to the New York City metropolitan area,” said James Stewart, CEO of MGM Growth Properties. “This financially accretive transaction further diversifies our existing market-leading regional portfolio and provides us with additional growth opportunities with a Right of First Offer on any potential capital improvements in the future. This is another excellent example of the power of our partnership with MGM Resorts.”

MGM Resorts’ funded the acquisition with approximately $360 million of cash on hand, the issuance of approximately 9.4 million shares of common stock, based on a volume weighted average price of a share of the Company’s common stock for a ten-trading-day period prior to the closing date, and the assumption of approximately $246 million in indebtedness. MGM Resorts has also agreed to pay an additional $50 million if Empire City is awarded a license for live table games on or prior to December 31, 2022 and MGM Resorts accepts such license by December 31, 2024.

MGP funded the acquisition of the developed real property from MGM Resorts through the assumption of approximately $246 million of indebtedness, which was repaid with borrowings under its senior secured credit facility, and the issuance of approximately 13 million operating partnership units to MGM Resorts based upon MGP’s closing price of $29.38 as of May 25, 2018. In addition, MGM Resorts has agreed to give MGP a right of first offer with respect to certain undeveloped land adjacent to the property to the extent MGM Resorts develops additional gaming offerings and chooses to sell or transfer the property in the future.

Empire City was added to the existing Master Lease between MGM Resorts and MGP, and the initial rent payment to MGP increased by $50 million. Consistent with the Master Lease terms, 90 percent of the increased rent will be contractually fixed to grow at two percent per year until 2022, and thereafter will continue to grow provided a tenant revenue to rent ratio is met. The remaining 10 percent is payable in percentage rent.

Empire City sits on a 97-acre property and serves approximately 16 million eligible gaming customers in southern New York. It is located only 15 miles from Times Square in Manhattan. Offering gaming, racing, dining, and entertainment, Empire City features over 5,200 of the latest slots and electronic table games, multiple dining outlets, and both live and simulcast horse racing.

BofA Merrill Lynch acted as exclusive financial advisor to MGM Resorts in connection with the transaction. PJT Partners LP is acting as financial advisor to the conflicts committee of the MGP Board of Directors.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

 

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 29 unique hotel and destination gaming offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company acquired the operations of Empire City Casino in New York in 2019, and in 2018, opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The over 82,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine’s World’s Most Admired Companies®.

About MGM Growth Properties

MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP currently owns a portfolio of properties, consisting of 11 premier destination resorts in Las Vegas and elsewhere across the United States, the Park, a dining and entertainment complex which opened in April 2016, and the Hard Rock Rocksino Northfield Park in Northfield, OH. As of December 31, 2017, these properties collectively comprise approximately 27,500 hotel rooms, 2.7 million convention square footage, 150 retail outlets, 300 food and beverage outlets and 20 entertainment venues. As a growth-oriented public real estate entity, MGP expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries.

Forward-Looking Statements

Statements in this release that are not historical facts are “forward-looking” statements and “safe harbor statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including those described in MGM Resorts’ and MGP public filings with the SEC. MGM Resorts and MGP have based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding the Company’s ability to generate future growth at Empire City. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which MGM Resorts and MGP operate, competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in   MGM Resorts’ and MGP Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, neither MGM Resorts or MGP is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If MGM Resorts updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

Source: MGM Resorts International; MGM Growth Properties LLC

Advertisement
Kasynos.Online

Gambling in the USA

Gaming Americas Weekly Roundup – October 12-18

Niji Narayan

Published

on

Reading Time: 3 minutes

Welcome to our weekly roundup of American gambling news again! It was again an eventful week in the USA, despite the still-active virus attack.

Here, we are going through the weekly highlights of the American gambling industry which include the latest news, new partnerships and new appointments. Read on and get updated.

Latest News

A new esports organisation named Equinox Esports has been launched in Oklahoma City. Equinox will own professional teams that span multiple video game titles including VALORANT, League of Legends and Super Smash Bros, among others. Equinox will produce unique in-house content in the form of podcasts, broadcasts, tournaments, video content and articles out of its newly-build 6000 square foot facility in north Oklahoma City.

In accordance with the directives from Nevada Governor Steve Sisolak and the Nevada Gaming Control Board, Caesars Entertainment has resumed gaming operations daily and hospitality operations for weekend stays at Planet Hollywood Resort & Casino on October 8. The reopening was with great celebration.

Win Systems is achieving huge success with its latest GameStar development, the innovative collectable link feature Rising Link. The new game has been in some of the Mexican gaming venues for many weeks now and has captured the interest of players from the very beginning.

Little River Casino Resort in Manistee, Michigan has been named a possible coronavirus exposure site by the health officials. Anyone who visited the Casino between October 2 and October 4 is asked to self-monitor for COVID-19 symptoms for 14 days from the possible exposure date, according to a news release issued by the District Health Department No. 10, which covers 10 Northern Michigan counties including Manistee.

Mohegan Gaming & Entertainment has announced a major expansion project for its ilani Casino Resort. In partnership with the Cowlitz Tribe, Howard S. Wright, and Friedmutter Group, ilani will feature additions to its exterior and interior designs.

The PGA TOUR has announced that BetMGM will provide betting odds for all four rounds of THE CJ CUP @ SHADOW CREEK in Las Vegas, October 15-18 on the Golf Channel.

New Partnerships

InterDigital, a mobile and video technology research and development company, has announced that it will partner with global innovation and accelerator platform Plug and Play to serve as anchor member for the platform’s Media & Advertising programme. The partnership will also see InterDigital and Plug and Play work towards developing a new gaming vertical within the next year.

InterDigital has announced a new initiative with cloud-gaming specialist Blacknut to develop technologies that will enhance the performance of the existing gaming technology. The new collaboration will leverage InterDigital’s extensive technology expertise alongside Blacknut’s unique knowledge of cloud gaming services.

New Acquisition

Twin River Worldwide Holdings has purchased the iconic Bally’s brand from Caesars Entertainment Inc. Hedge-fund investor Soo Kim, co-founder of Standard General, which owns a 39% stake in Twin River, paid Caesars $20m for the purchase.

New Appointment

Rush Street Interactive has announced the appointment of Kyle Sauers as its new Chief Financial Officer, effective by October 23. He will be based in Chicago and report to Greg Carlin, RSI’s Chief Executive Officer. He will be responsible for all of the Company’s financial and treasury functions, as well as investor relations.

Compliance

Greek gambling regulator Hellenic Gaming Commission has selected Mohegan Gaming & Entertainment to develop the first integrated resort and casino in Greece. The winning bid from MGE, submitted in partnership with GEK TERNA, proposes a state-of-the-art development plan, INSPIRE Athens, that includes a luxury hotel, premier entertainment venues, convention centre, shopping, dining, casino and a comprehensive mix of premium amenities.

Michigan Gaming Control Board has granted a Provisional Internet Gaming Supplier License to Spin Games LLC. The license will enable Spin to deploy its proprietary and third-party i-Gaming content built upon the ROC Remote Gaming Server platform across Michigan’s licensed casino operator online sites once internet gaming goes live.

Continue Reading

Gambling in the USA

Gaming Americas Weekly Roundup – October 5-11

Niji Narayan

Published

on

Reading Time: 2 minutes

Welcome to our weekly roundup of American gambling news again! It was again an eventful week in the USA, despite the still-active virus attack.

Here, we are going through the weekly highlights of the American gambling industry. Read on and get updated.

Latest News

Twin River Worldwide Holdings has entered into an agreement with Delaware North Companies Gaming & Entertainment, Inc. to acquire Jumer’s Casino and Hotel (Jumer’s) in Rock Island, Illinois for a purchase price of $120 million in cash. Jumer’s is located in the Quad Cities in Rock Island, Illinois and features a 40,000 square foot casino floor containing more than 870 slot machines and 25 table games, a 205 room hotel with 11 luxury suites, an events centre, the Oculus Sports Bar, the Edje nightclub and four restaurants.

Gambling operator Loto-Québec has closed two of its land-based venues due to an increase in the number of coronavirus cases. The two venues are Casino de Montréal and the Salon de jeux de Québec. They will remain closed until October 28. Network bingo, Kinzo and video lottery machines (VLTs) in the metropolitan zones of Montreal, Quebec City and the Chaudière-Appalaches region will be inoperative for the same period. Lottery ticket sales will continue.

MegaFans, a San Diego area-based mobile-casual eSports platform, has completed its first charity fundraising event with the International Game Developers Association (IGDA) Foundation, as part of a series using the MegaFans eSports tournament platform. The first tournament ran through September. The eSports tournament Series is being promoted to raise awareness and funds to go towards the IGDA Foundation’s Diversity Initiative, to improve the lives of independent game developers around the world. Previously, MegaFans worked with the IGDA Foundation on the Stay in the Game Relief Fund which raised over $100,000.

NFL bettors received a reminder just how quickly a pandemic can alter the sports landscape. Two COVID-19-related postponements made for a lighter Sunday schedule and the effects will reverberate into Week 5, according to analysts of TheLines.com.

International Game Technology (IGT) and Scientific Games Corporation have released a joint statement regarding the Exclusive Instant Lottery (LOTEX) concession in Brazil.

Northern California’s Cache Creek Casino Resort, which has been shut down since September 20, has confirmed that the closure was the result of an external attack on the property’s computer network.

New Partnerships

Peripherals manufacturer CORSAIR has partnered with Canadian venue and tournament provider Amuka Esports. As per the deal, CORSAIR will become the exclusive peripherals and gaming chair partner of Waves Gaming, the flagship venue from Amuka Esports, which will also host a CORSAIR Gaming Zone.

DraftKings has become the official daily fantasy sports partner and official sports betting partner of the Philadelphia Eagles. As per the new multi-year deal, DraftKings will receive exclusive naming rights to the Field Club at Lincoln Financial Field, a premium lounge which will be called “The DraftKings Field Club.”

Game developer AGS has signed a new agreement with BetMGM in the US. As per the deal, AGS will provide its gaming content to BetMGM’s entire casino gaming network including BetMGM Casino, Borgata Online and partypoker.

Gambling harm minimisation consultancy EPIC Risk Management has once again teamed up with the Kindred Group to provide sector-leading training and development sessions for their staff in the US.

Continue Reading

Gambling in the USA

Gaming Americas Weekly Roundup – September 28-October 4

Niji Narayan

Published

on

Reading Time: 2 minutes

Welcome to our weekly roundup of American gambling news again! It was again an eventful week in the USA, despite the still-active virus attack.

Here, we are going through the weekly highlights of the American gambling industry which include the latest news, new partnerships and new appointments. Read on and get updated.

Latest News

Montreal-based payment technology company Nuvei Corporation has received its sports betting vendor license from Colorado’s Division of Gaming. This permits the company to process payments within the state’s boundaries on regulated sports betting sites and apps. Nuvei can now provide gaming operators and companies with seamless payment services for customers over the age of 21 who place legal wagers on games in the National Football League, Major League Baseball, National Basketball Association, National Hockey League and any other professional and amateur sports betting transactions across the State.

Caesars Entertainment is in advanced talks to acquire the UK-based bookmaker William Hill for £2.9 billion. In a joint statement, the companies said that Caesars was considering offering 272 pence per share for William Hill. To fund the deal, Caesars said it was announcing a new equity raise, and would also take out $2 billion of new debt secured against William Hill’s non-US businesses.

New research by CasinosHunter.com, an independent online casino reviewing platform for gamblers, has revealed the new challenges that have emerged as a result of the COVID-19 pandemic, as well as the possibilities now available to the Canadian gamblers. Gambling is hugely popular in Canada. Data indicates that 60% of locals participate in gambling on a regular basis, spending on average $100 per month on games. Overall, the industry generates significant income – $31 billion to be exact – paying up to 15% in taxes. However, the pandemic has changed this significantly.

Former Catena Media C-level executive Andreas Ericson and online gambling veteran Gustav Lipcsey have secured seed round of financing from famous iGaming industry investors. The proceeds from this round of financing will fuel the business operations of US Sportsbonus, a Hoboken, NJ, based legal online sports betting resource site that provides expert US sports betting picks, provides partner referral resources, industry news and more.

New Partnerships

Gambling technology company Playtech has announced the roll out of its casino software in New Jersey across BetMGM’s gaming network. BetMGM is the joint venture created by MGM Resorts International and GVC Holdings. As per the deal, Playtech will provide its industry-leading casino software to BetMGM Casino, Borgata Online and PartyCasino NJ.

Scientific Games Corporation has secured a five-year contract renewal with long-term customer Flutter Entertainment. Through the contract renewal, Scientific Games will continue providing its OpenSports technology to the operators’ portfolio of global brands. The five-year renewal comes on the back of FanDuel selecting Scientific Games to power their sportsbook offering across all current and future regulated markets in the US.

RG24seven, a video-based responsible gaming training platform, has partnered with the National Indian Gaming Association to provide tribal-specific, video-based, responsible gaming training to its members.

New Appointment

Bragg Gaming Group has appointed gaming industry veteran and former SB Tech CEO Richard Carter to its Board of Directors as Non-executive Chair. Carter will advise and provide support to CEO Adam Arviv on developing a global strategy focused on partnerships with best-in-class brands, continued growth of their organic business and consideration of all accretive M&A opportunities.

Compliance

Sports Wagering Committee of the Tennessee Education Lottery Board of Directors has approved the sports betting licenses of Betfair Interactive, BetMGM and Crown TN Gaming (DraftKings). The Board will consider more on October 5 and 16.

Continue Reading
Advertisement
NSoft

Subscribe to our News via Email

Enter your email address to subscribe to our news and receive notifications of new posts by email.

Trending

Notice for AdBlock users

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.

Kasynos.Online