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.
Comments
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.