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.