MGM Resorts International, one of the biggest and most profitable casino companies in the world, is considering making some major changes. Reports are coming out that this company may be putting some of its most profitable venues up for sale. MGM Resorts could sell some Las Vegas Strip properties and Blackstone Group is interested in buying them.
It’s an interesting development. MGM feels that selling some of these hotel-casinos could increase the company’s share price. Let’s look at what properties may go for sale, and how this will impact the company moving forward.
MGM Resorts Continues Pushing Into Japan
Not long ago, lawmakers in Japan approved a bill to allow three new casino-resorts to open in the country. It was a monumental decision, as in the past, Japan banned virtually all forms of gambling. Many gambling analysts predict that Japan will become one of the most lucrative casino markets in the world.
It should come as no surprise that many of the top US casino companies are now working to break into this market. As we just mentioned, only three casino licenses will be handed out here. Tokyo, Yokohama, and Osaka are all expected to host a casino.
Las Vegas Sands, Wynn Resorts, and MGM Resorts International are all trying to earn one of these casino licenses. Not long ago, LVS announced that it was no longer interested in opening a casino-resort in Osaka. Instead, this company is pushing for a license to run a casino in Tokyo.
MGM Resorts seems interested in opening a casino anywhere in Japan. Osaka seems to be the top choice for MGM officials. The company is teaming up with local businesses in order to obtain one of these licenses.
Now, reports are surfacing that MGM could sell Las Vegas Strip properties. It’s surprising news, as these are considered to be some of the most lucrative casinos in the world.
MGM Resorts May Sell Las Vegas Strip Properties This Year
MGM Resorts International is the biggest casino-resort operator in Las Vegas. This company owns a huge number of Las Vegas properties including the MGM Grand, Bellagio, and the Mandalay Bay. This week, the company announced that it’s considering selling some of these casinos to Blackstone Group.
In January of this year, MGM formed an independent board committee to evaluate new ways to earn money from its real estate portfolio. Jim Murren, CEO of MGM Resorts International, is optimistic about the company’s new ways to earn revenue.
“We have a lot of options in front of us, actually very creative and interesting options. We also know that our real estate is undervalued in the marketplace,” he said.
Blackstone Group, a New York-based alternative investment firm, is showing interest in purchasing some of MGM’s Las Vegas Strip properties. According to Bloomberg, this company is in direct talks with MGM to buy several of the biggest casinos in Sin City.
Reports indicate that MGM is interested in selling the Bellagio and MGM Grand. Financial analysts believe these hotel-casinos can sell for $6 to $7 billion. In the wake of this news, MGM Resorts’ share prices rose by 5%.
Caesars Also Interested in Selling Las Vegas Casinos
It’s looking like MGM Resorts International is interested in putting some of its top properties for sale. This isn’t the only major casino company that’s interested in selling Las Vegas casinos. Recently, Caesars Entertainment has indicated that it too may sell some of its properties in this city.
Caesars is set to merge with Eldorado Resorts in the near future. This merge is the largest ever made in the US casino industry. For this merger to be approved, however, Caesars Entertainment may need to put some of its most profitable casinos up for sale.
Eldorado Resorts paid nearly $17 billion to acquire Caesars. In order to make some of this money back, the company is interested in selling some of its biggest properties.
We’ll need to see exactly how Caesars and MGM Resorts approach these sales.
It’s an interesting time in the US casino industry. Make sure to stay tuned for more Las Vegas gambling news over the next few months!