American casino operator MGM Resorts International has spent $900 million to purchase the 50% stake in the Borgata Hotel Casino And Spa previously held by partner Boyd Gaming Corporation.
According to a report from The Press Of Atlantic City newspaper, the transaction, which was approved last month by New Jersey’s Casino Control Commission, saw Las Vegas-based Boyd Gaming Corporation receive $589 million after paying customary working capital adjustments and its share of the Atlantic City venue’s outstanding debt of $575 million.
“As the premier resort in Atlantic City, the Borgata [Hotel Casino And Spa] is a great addition to our growing presence in the mid-Atlantic and northeast United States,” read a statement from Jim Murren, Chairman and Chief Executive Officer for Las Vegas-based MGM Resorts International. “We are excited to welcome the talented Borgata leadership team and employees into MGM Resorts International and look forward to serving guests with new and exciting opportunities through our diverse resort offerings, entertainment dominance and market-leading loyalty program, M Life Rewards.”
Opened in July of 2003 as a joint venture between MGM Resorts International and Boyd Gaming Corporation, the Borgata Hotel Casino And Spa underwent a $200 million casino and retail expansion in 2006 that saw the venue add the largest poker room in New Jersey.
“We welcome MGM Resorts International as the new operator and are excited to further utilize its best-in-class brand to continually bring quality experiences to our guests,” read a statement from Tom Ballance, President and Chief Operating Officer for the Borgata Hotel Casino And Spa.
The Borgata Hotel Casino And Spa features 2,000 guest rooms and suites alongside a 161,000 sq ft casino offering 3,026 slots, 184 table games and over 75 poker tables. It is the most profitable casino in Atlantic City after reporting $812 million in net revenues for the year to the end of March alongside $212 million in adjusted earnings before interest, tax, depreciation and amortization.
“We have enjoyed working with Boyd Gaming since the Borgata [Hotel Casino And Spa’s] opening in 2003,” read the statement from Murren “We hold the company in the highest regard and wish [it] the best of luck in the future.”