Content With ‘Exposure’ In Las Vegas, MGM Resorts Has Begun Process Of Selling The Mirage

In this week’s earnings call for MGM Resorts International, CEO Bill Hornbuckle announced that the company is planning to sell The Mirage. Here is what Hornbuckle stated:

In the past, I’ve stated our satisfaction with our present exposure in Las Vegas. With that in mind, we have now embarked on the initial phases of a process to sell the Mirage operations.

It’s important to mention that the land is not owned by MGM Resorts, but by MGM Growth Properties. The real estate division of MGM has been sold to VICI. This transaction is set to be finalized next year, at which point VICI will become the landowner.

MGM Resorts intends to sell only the operations at The Mirage. This might alter the potential buyer demographic for the property.

Hornbuckle did not disclose any potential buyers that the company might be in discussions with. The new owner of The Mirage’s operations will likely introduce a new sportsbook operator to the Vegas Strip.

Why MGM Resorts is selling The Mirage

Hornbuckle addressed the issue of selling The Mirage versus other Las Vegas properties during the call. The answer seems to be fairly clear-cut.

The Mirage is regarded as one of the top assets for MGM Resorts. The company’s recent acquisition of operations at The Cosmopolitan effectively enables them to exchange one luxury property for another.

After the completion of both sales, MGM Resorts’ property portfolio will remain unchanged. The company will continue to offer hotel rooms at all price points for its customers.

• Aria, Bellagio, The Cosmopolitan: Top tier
• Excalibur, Luxor, Mandalay Bay, MGM Grand, New York-New York, and Park MGM are in the mid and lower tiers.

MGM Resorts’ variety enables them to cater to visitors of all budget sizes. Additionally, it allows the company to maintain its properties in close proximity to T-Mobile Arena and Allegiant Stadium. These strategic locations are crucial in promoting hotel room sales and attracting more BetMGM customers.

Who are the contenders to buy The Mirage?

Over the past year, there has been considerable debate about the arrival of new sportsbook operators in Nevada. While in-person sports betting account registration remains a challenge, The Mirage has become a desirable location for numerous reasons.

Firstly, The Mirage boasts one of the largest retail sportsbooks on the Vegas Strip, making it highly appealing to any retail sportsbook operator. Secondly, The Mirage’s central location on the strip is ideal, especially given the requirement for in-person sports betting account registration.

Numerous names have circulated in the rumor mill over the past few years as potential buyers for a Las Vegas casino. The following are four casino and sportsbook operators who might contemplate acquiring The Mirage’s operations:

Hard Rock International

Jim Allen, CEO of Hard Rock International, has been discussing the possibility of opening a Hard Rock property in Las Vegas. The company has acquired the complete intellectual property rights to use the name Hard Rock Las Vegas Hotel and Casino.

A Hard Rock Casino is likely to be established in Las Vegas eventually. It seems the company would also prefer to own the real estate. However, this deal may not be suitable for them.

Golden Nugget (and DraftKings)

In 2019, Tilman Fertitta, the owner of Golden Nugget, contemplated acquiring Caesars Entertainment. He might now shift his focus to The Mirage, potentially bringing DraftKings on board as his sportsbook collaborator. If this scenario occurs, The Mirage could host the inaugural DraftKings Sportsbook on the Vegas Strip.

DraftKings could potentially purchase the casino outright. However, MGM Resorts might favor cash transactions over the predominantly stock-based deals that DraftKings has recently been conducting.

Penn National Gaming (and Barstool)

This year, Penn National Gaming (PNG) transferred the operations of Tropicana to Bally’s, thereby losing its Vegas Strip presence. Nonetheless, PNG is keen on making a comeback to Las Vegas, having previously made a bid on The Cosmopolitan. In a recent earnings call, the company’s CEO, Jay Snowden, expressed his openness to either purchasing or running a casino on the Vegas Strip.

Before selling Tropicana, PNG stated that it would only establish a Barstool Sportsbook in Las Vegas if it was located on the Vegas Strip. The Mirage presents a unique sportsbook layout, with the California Pizza Kitchen offering a view of the sportsbook. This space has the potential to be transformed into a Barstool Sportsbook, complete with a One Bite Pizza retail outlet, or another Barstool Sports Bar.

Boyd Gaming (and FanDuel)

Currently, Boyd Gaming is not running a casino on the Vegas Strip. However, there are speculations that the company might acquire a property on Las Vegas Boulevard. Purchasing The Mirage could present the company with an excellent opportunity to bring its sports betting partner, FanDuel Sportsbook, into the Las Vegas market.

Boyd Gaming is the proprietor of the real estate for its various properties. Yet, The Mirage presents an enticing prospect for the company to establish a presence on the Vegas Strip for the first time since 2013 when it divested its land that previously housed the Stardust.