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.

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.

Casino gold strike