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MGM Sells off in Reno

Last edit: wpsteel66 on Wednesday, 8th July 2015 10:35 am
Last response by anawas 9th July 10:02pm

Just read a story that MGM sold Circus Circus Reno and their 50% ownership of Silver Legacy Reno to Eldorado Resorts. So now Edorado will own all three casinos connected via the sky-walk in downtown Reno.

The story said Circus Circus LV was not part of the deal.

Wondering now if MGM will include CC-LV into their MLife program now. Or will wait it out to see what happens in the north strip.

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 BillyinLasVegas responded on Wednesday, 8th July 2015

CCLV won't be part of M life anytime soon. MGM doesn't want you to earn comps there and spend them at a nicer property. It's also about internal accounting for comps and it would negatively affect CCLV.

 vespajet responded on Wednesday, 8th July 2015

Here's a link to the press release from MGM:
Eldorado Resorts and MGM Resorts International Enter into Definitive Agreement on the Sale of MGM’s 50 Percent Interest in Silver Legacy Resort Casino Reno and the Assets of Circus Circus Reno

Based on the press release, it doesn't sound like the Circus Circus name will be changing, but at the same time, there is no mention of the name being licensed to Eldorado.

As for Circus Circus Las Vegas, maybe something is up in terms of its' future. Could we finally see the big top fold? There's been speculation for close to a decade about the future of the property, especially when MGM started acquiring parcels adjacent to it.

 MattK responded on Wednesday, 8th July 2015

Seems like this sale is of a piece with the sale of Railroad Pass and Gold Strike. I think Jim Murren wants to let go of the peripheral, non-Vegas hotels that don't really add anything to the brand. Does this bode ill for Circus Circus? Maybe. But I think selling Circus now would be premature. In two years that property will be adjacent to a brand new megaresort, and across the street from a new convention facility. Surely the price would be higher at that point.

 Blakjackkid responded on Wednesday, 8th July 2015

Makes sense given MGM still has billions in debt from the construction of City Ceneter and hundreds of millions in interest payments each year on that debt. I've been saying for years now that they need to sell-off their non-core properties to pay it off. I'm still surprised they haven't sold off the Crystals shopping center next to Aria which I suspect could bring in a nice chunk of change.

 anawas responded on Thursday, 9th July 2015

This means MGM is completely out of Reno, right? Wonder what this means for Tunica and Biloxi, since I doubt MGM will sell Detroit or any East-Coast sites.

On an unrelated note, I never saw Reno (or Detroit) appear as places to redeem MGM/MyVegas perks. But there are a few perks available for both properties in Mississippi as well as a bunch of other non-MGM randomness.