The pair of real estate investment trust’s detail that the acquisition of Blackstone’s share of the JV will be for $1.27bn and Vici’s assumption of the pro-rata share of the existing property-level debt. 

This debt has a principal balance of $3bn, matures in 2032, and bears interest at a fixed rate of 3.558 per cent per annum through March 2030.

The properties, situated at the south end of the Las Vegas Strip, are subject to an existing triple-net lease agreement between the JV and MGM Resorts International. This will generate annual rent of approximately $310m upon the commencement of the next rental escalation on March 1, 2023.

The MGM Grand Las Vegas and Mandalay Bay lease has a remaining initial lease term of approximately 27 years, expiring in 2050, with two ten-year tenant renewal options. Rent under the lease agreement escalates annually at two per cent until 2035, and at the greater of two per cent or CPI (subject to a three per cent ceiling) from that point on.

Vici gained its 51.1 share in the JV in August 2021 following the acquisition of MGM Growth Properties for a total consideration of $17.2bn, with this assumption of full control first detailed in December.

Edward Pitoniak, Chief Executive Officer of VICI Properties, said at the time of the transaction first being disclosed: “We have been honoured to be BREIT’s partner in the MGM Grand Las Vegas / Mandalay Bay joint venture and this transaction further demonstrates the ability of Blackstone and Vici to work together productively, now and in the future. 

“We’re excited to further our investment in MGM Grand Las Vegas and Mandalay Bay, two of the largest and highest-quality resorts in what we believe is the leisure and convention destination with the most compelling future demand outlook.

“This transaction also provides us with the opportunity to further grow our partnership with MGM Resorts International as they look to capitalise on the growing vitality of the south Strip.”

Speaking to CasinoBeats last month, Pitoniak confidently proclaimed that “Las Vegas has very few global rivals” confidently proclaimed amid a prediction that investments into the Nevadan city are something of a no brainer. 

“The post-COVID urge to gather will not wane quickly and America’s gaming assets are unrivalled places to gather,” he stated.

“The event calendar in Las Vegas in 2023 is, not to put too fine a point on it, insane. And then we get the Super Bowl in early 2024. Las Vegas will be the busiest place on earth in 2023.  

“We’re particularly excited about the global exposure that Las Vegas will generate by hosting its first F1 race, right on the legendary Strip. The world will watch and it will see, clearly, that there’s no place like Las Vegas.”

The post Vici Properties closes acquisition of Blackstone’s Mandalay Bay and MGM Grand stake appeared first on CasinoBeats.

The pair of real estate investment trust’s detail that the purchase of Blackstone’s share of the JV will be for $1.27bn and Vici’s assumption of the pro-rata share of the existing property-level debt. 

This debt has a principal balance of $3bn, matures in 2032, and bears interest at a fixed rate of 3.558 per cent per annum through March 2030.

Jon Gray, President and Chief Operating Officer of Blackstone, said: “Vici Properties has been an outstanding partner on these assets and we are incredibly pleased to have delivered such exceptional returns for our BREIT investors. Las Vegas continues to be a high conviction market for Blackstone.”

Scott Trebilco, Senior Managing Director of Blackstone Real Estate, noted: “The sale of these assets is an excellent outcome for our BREIT investors and enables us to further concentrate BREIT’s portfolio in its highest growth sectors, including logistics and rental housing.”

The properties, situated at the south end of the Las Vegas Strip, are subject to an existing triple-net lease agreement between the JV and MGM Resorts International. This will generate annual rent of approximately $310m upon the commencement of the next rental escalation on March 1, 2023.

The MGM Grand Las Vegas and Mandalay Bay lease has a remaining initial lease term of approximately 27 years, expiring in 2050, with two ten-year tenant renewal options. Rent under the lease agreement escalates annually at two per cent until 2035, and at the greater of two per cent or CPI (subject to a three per cent ceiling) from that point on.

Vici gained its 51.1 share in the JV in August 2021 following the acquisition of MGM Growth Properties for a total consideration of $17.2bn.

Edward Pitoniak, Chief Executive Officer of VICI Properties, explained: “We have been honoured to be BREIT’s partner in the MGM Grand Las Vegas / Mandalay Bay joint venture and this transaction further demonstrates the ability of Blackstone and Vici to work together productively, now and in the future. 

“We’re excited to further our investment in MGM Grand Las Vegas and Mandalay Bay, two of the largest and highest-quality resorts in what we believe is the leisure and convention destination with the most compelling future demand outlook.

“This transaction also provides us with the opportunity to further grow our partnership with MGM Resorts International as they look to capitalise on the growing vitality of the south Strip.”

The post Vici Properties to purchase Blackstone’s <br> MGM Grand & Mandalay Bay interests appeared first on CasinoBeats.

$1bn

MGM Resorts International has unveiled further details of its $1.06bn Hard Rock Rocksino Northfield Park acquisition, as it held a pep rally for employees of the property.

The purchase of the re-branded MGM Northfield Park is expected to close in April, with it stated that the entity needed “a name symbolic of MGM Resorts’ legacy as an entertainment and hospitality leader”.

It’s new purchase offers in excess of 200 live harness races each year, in addition to featuring 2,300 gaming devices, varied dining options, live music and comedy events, and will see its tap sports bar concept, which has a variety of locations such as MGM Grand Las Vegas and MGM National Harbor, replace the Hard Rock Café.

The 1,900 seat concert style music hall is to become Center Stage from its current Hard Rock Live moniker, Club Velvet, which hosts comedy acts to live musical performances, is to become the Neon Room, with all further amenities also set to be rejuvenated and renamed.

€400,000

Dutch gaming regulator Kansspelautoriteit has imposed a €400,000 fine on Exinvest Limited and 1X Corp NV, two entity’s behind gambling websites 1xbet.com and xbet-1.com.

Relating to illegal activities by the Cyprus based Exinvest and Curaçao’s 1X Corp, research by the authority highlighted that during a certain time-frame both gambling websites could be accessed from the Netherlands.

It was also further highlighted that the Dutch language was used and payment could be made via the Dutch service method iDeal, with many games of chances found to be on offer, including those of live casino games such as roulette and blackjack.

The investigation undertaken by the Ksa revealed that Exinvest Limited and 1X Corp were behind another 83 Dutch gambling websites, which you could log in to utilising the same player account.

25

The Senet Group has called for a change in the behavioural approach to tackling problem gambling, as it publishes an independent research report examining behaviours in the context of personal control.

Conducted by independent agency Revealing Reality, and titled ‘In Control: How to support safer gambling using a behaviour change approach,’ 25 participants were selected to take party after answering a series of questions from the problem gambling severity index.

The research reveals that regardless of their risk profile, all gamblers want to stay in control, and that this control is critical to their enjoyment of gambling.  

As a result, people set boundaries to their gambling which they look to maintain through a variety of formal and informal management strategies

The group believes that setting out elements required for behaviour change in the approach to tackling problem gambling, “where an understanding of why and how people behave as they do,” will help identify opportunities to influence and change behaviour for the better.

50.1

Louisville headquartered Churchill Downs is nearing a deal to secure a controlling interest in Illinois’ Rivers Casino Des Plaines, reports Chicago’s Daily Herald.

Intending to acquire a 50.1 per cent stake of Midwest Gaming, the property’s owner, for a fee of at least $326m, it’s the potential introduction of sports betting, and expanding beyond its current Arlington International Racecourse interest within the state, which are thought to be the main drivers of the agreement.

According to the publication Illinois Gaming Board is undergoing routine approval processes regarding the purchase, looking into a variety of issues, including the company’s financial situation and conducting criminal background checks on its executives, to ensure Churchill Downs meets state requirements.

A vote on the deal could commence this week, with a deal for Rivers, which houses 983 slot machines and 58 table games, expected to close in the first half of the year.

The post Kansspelautoriteit, Senet Group and Churchill Downs: The week in numbers appeared first on CasinoBeats.

The new deal, which will see MGM lease the property from MGM Growth Properties (MGP), will include the rebranding of the Hard Rock property, now set to be named MGM Northfield Park once the transaction is finalised.

For the transaction to be fully completed, MGP had to redeem 9.4 million of its operating partnership units from a subsidiary of MGM Resorts, totalling approximately $275m.

Jim Murren, Chairman and CEO of MGM Resorts, commented: “We are pleased to welcome the 950 employees of MGM Northfield Park into the MGM Resorts family.

“Over the years, we have strategically and thoughtfully expanded our presence in key US regions where we can leverage our expertise, maximise our cross-marketing efforts and drive company-wide growth.”

The new MGM addition will offer in excess of 200 live harness races each year, in addition to featuring 2,300 gaming devices, varied dining options, live music and comedy events, and will see its tap sports bar concept, which has a variety of locations such as MGM Grand Las Vegas and MGM National Harbor, replace the Hard Rock Café.

The 1,900 seat concert style music hall is to become Center Stage from its current Hard Rock Live moniker, Club Velvet, which hosts comedy acts to live musical performances, is to become the Neon Room, with all further amenities also set to be rejuvenated and renamed.

James Stewart, CEO of MGP, added: “With the addition of this property to the master lease, MGP shareholders will further benefit from our market leading net rent coverage as well as our tenant’s significant cash flows and strong credit profile.”

The post MGM finalises Hard Rock Northfield purchase appeared first on CasinoBeats.

The purchase of the re-branded MGM Northfield Park is expected to close in April, with it stated that the entity needed “a name symbolic of MGM Resorts’ legacy as an entertainment and hospitality leader”.

It’s new purchase offers in excess of 200 live harness races each year, in addition to featuring 2,300 gaming devices, varied dining options, live music and comedy events, and will see its tap sports bar concept, which has a variety of locations such as MGM Grand Las Vegas and MGM National Harbor, replace the Hard Rock Café.

The 1,900 seat concert style music hall is to become Center Stage from its current Hard Rock Live moniker, Club Velvet, which hosts comedy acts to live musical performances, is to become the Neon Room, with all further amenities also set to be rejuvenated and renamed.

Chris Kelley, president and chief operating officer of MGM Northfield Park, a role he was confirmed as taking last month, explained: “MGM Resorts is proud to work alongside the 950 dedicated employees during this transition. MGM Northfield Park is situated in a great location within a vibrant community and offers wonderful amenities, from dining and entertainment venues to gaming, harness racing and retail options.

“Through the dedication and hard work of this team, the Rocksino and harness track have established themselves as market leaders, and we are excited to begin this new journey together.”

Adding: “It has been an absolute pleasure working with the Hard Rock team during this transition. They have created a successful and special destination with a terrific team, and they have our commitment that we will uphold the high standards they have set.”

Additional details on the MGM Northfield Park transformation will be available in the coming weeks, with the transaction also subject to customary closing conditions.

The post MGM details $1bn Northfield Park transformation appeared first on CasinoBeats.