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Boyd Gaming Sells its Borgata Stake to MGM Resorts International

Gaming firm Boyd Gaming has revealed that they will be selling off their 50% ownership of the Borgata Hotel Casino to MGM Resorts International for $900 million as well as half of a tax settlement with the casino's hometown of Atlantic City.

The deal is scheduled to complete in the third quarter of this year, and will see Borgata getting $600 million in cash after the casino's debt is paid off. Since it launched in 2003, the Borgata has consistently been Atlantic City's most profitable casino, as it mixes in a large amount of gaming revenues and has a successful online betting site.

Commenting on the deal MGM Resorts International CEO Jim Murren said, "We believe Borgata's best days are yet to come. When you've got a great property that's carefully cared for in a market as large as Atlantic City, you can and should do well."

Boyd Gaming CEO Keith Smith also commented on the deal, noting: "While we are pleased with the performance of this property, this transaction is an attractive opportunity to immediately unlock significant value for our shareholders."

Currently the Borgata is pushing a case against Atlantic City, as there is a large tax overpayment worth $180 million due back to the resort, but the city doesn't have the funds to pay back the money. The resolution of the case is a sticking point, as Atlantic City claims that paying the money would press the town into bankruptcy.

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bgsharpe
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1 June 2016 - 10:27pm
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Obviously their business prosper and there's still many good days ahead of Borgata, think that their online business playing big role in their success. I guess the shareholders would be very happy with the deal.

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