MGM sells Illinois casino

MGM Resorts International announced it sold the Grand Victoria Casino to Eldorado Resorts for US$327.5 million.

US.- MGM Resorts International, along with its venture partner RBG, announced in April the execution of a definitive agreement to sell the Grand Victoria Casino in Elgin, Illinois, to Eldorado Resorts. This week, the company has completed the sale, from which it will get US$327.5 million in cash, subject to a customary working capital adjustment.

As the deal was executed, MGM Resorts received its 50 per cent share of the net proceeds, amounting to around US$162 million. The interest had been acquired in connection with its purchase of Mandalay Resorts Group in 2005.

Executive Vice President and Chief Financial Officer of MGM Resorts Dan D’Arrigo said: “We thank the employees of Grand Victoria Casino, who have made it a tremendous success over the years, and wish them all the best in the future.”

The transaction follows Eldorado’s attempt to expand its business in the Chicago-area market. Gary Carano, chairman and chief executive office of Eldorado, said on a conference call on Monday that Grand Victoria is one of the leading casinos in the Chicagoland market and is extremely well-maintained,” therefore it will allow them “upon closing, to focus on enhancing the guest experience and operating results without the need to undertake capital investments.”