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MGM Buys Borgata Hotel & Casino Stake for US$900 Million from Boyd Gaming
By Brodey Sheppard - June 03, 2016
Boyd Gaming has sold its 50% stake in the market-leading Borgata Hotel Casino & Spa to MGM Resorts for a total of US$900 million. This deal effectively makes MGM the sole owner of Borgata, including its Bwin.party-powered top online casino sites.
A 900 Million Deal for Atlantic City’s Finest
Boyd Gaming recently announced it had sold its share in the Marina District Development Holding Company – the unit that controls Borgata Hotel Casino & Spa – to MGM Resorts for around US$900 million. This deal will close sometime in Quarter Three of this year. Boyd will receive around US$600 million upfront, and then collect any future property tax settlements with Atlantic City.
Keith Smith, CEO if Boyd Gaming, said that he was pleased with the performance for Borgata, but the sale was an attractive opportunity that the shareholders did not want to miss. Jim Murren, the CEO of MGM, added that the company was looking forward to bringing MGM’s loyalty program – Mlife Rewards – to the Borgata. If you want to experience a similar loyalty program, you can check out our BGO casino site review. BGO has a five-tiered loyalty program where you receive benefits like special promotions and monthly rewards. There are even special VIP games. Check it out and create an account at BGO.
Impact on US Online Gaming and Betting
MGM and Boyd’s transaction makes MGM in charge of America’s leading online betting operation, since Borgata’s Bwin.party-powered sites have ranked regularly ranked at the top of New Jersey’s regulated online betting market revenue charts. In these sites you get to play all kinds of betting games, and receive promos like great online blackjack bonuses and free games.
MGM has now become fully responsible for the decisions surrounding the future of these Borgata-linked gaming and betting sites. MGM has to find new strategies to compete with the new PokerStars NJ site. MGM also has to decide whether the sites will continue as a partnership with Bwin.party’s new owner GVC Holdings, or if it should strike a deal with GVC’s rival partner GAN.
MGM can also play a part in deciding whether New Jersey should decide to share online poker liquidity with Nevada, and affect the future of US online poker legalization. At present, MGM does not operate an online poker site in Nevada, but it does have approval from state regulators.