MGM Resorts International’s plan to take full control of the Borgata Hotel Casino And Spa in New Jersey has taken a massive step forward after its proposal received the required approval of the eastern state’s Casino Control Commission.
Opened in July of 2003 as an equal partnership between Boyd Gaming Corporation and MGM Resorts International, the Borgata Hotel Casino And Spa is the most profitable casino in Atlantic City and reported $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.
MGM Resorts International announced in late-May that it had agreed a deal that would see it pay approximately $900 million for the 50% stake in the Borgata Hotel Casino And Spa currently held by fellow Las Vegas-based firm Boyd Gaming Corporation. If successful, it revealed that it would subsequently sell all of the venue’s real property to its MGM Growth Properties subsidiary for around $1.175 billion before taking over full operational control of the Atlantic City venue through another subordinate.
Wednesday saw the Casino Control Commission approve lease agreements needed for the sale by a 3-0 vote while MGM Resorts International revealed that it expects the full deal, which will additionally see it merge the property’s customer loyalty program with its own M Life Rewards system, to close during the third quarter of the year.
“[The Borgata Hotel Casino And Spa] is the premier resort in Atlantic City and a great addition to our growing presence in the northeast,” read a statement from Jim Murren, Chairman and Chief Executive Officer for MGM Resorts International. “While the market continues to experience challenges, [the Borgata Hotel Casino And Spa] has outperformed and differentiated itself as the undisputed leader in the city. Our decade-long partnership with Boyd Gaming Corporation has been a great one and [the Borgata Hotel Casino And Spa’s] talented employee base will complement and strengthen our more than 60,000-member worldwide MGM Resorts International team. We are excited about the opportunity to bring our market-leading loyalty program, M Life Rewards, to the resort and integrate our operations to position [the Borgata Hotel Casino And Spa] for further growth.”