This week’s casino news starts off with the surprising news that the Bellagio Hotel in Las Vegas could be up for sale. Would MGM Resorts International really put the Las Vegas icon up for sale? Let’s take a closer look:
MGM Could Earn $7 Billion In Sales Of Bellagio, MGM Grand
Recently, there’s been concerns that the Las Vegas Strip is owned by just a few entities. However, MGM Resorts International is considering selling off a couple of their casino properties and the news came as a surprise to many.
MGM Resorts International could command between $6 billion to $7 billion (before taxes) if the company decides to sell the Bellagio and MGM Grand on the Las Vegas Strip. Macquarie analyst Chad Beynon provided that estimate in anticipation that MGM could sell those properties in order to address a portion of its debt burden, which was reported at $15 billion earlier this year.
Another potential motive for selling the properties is to deploy capital towards share deleveraging and share repurchases, which would open up more free cash flow for 2020. Some believe that MGM Growth Properties LLC, which is the real estate company that separated from MGM in 2016, could be the most practical option for MGM Resorts International to sell the property to if it comes to that. MGM Growth Properties LLC already owns several staples that are run by MGM in Las Vegas, including Excalibur, the Luxor, Mandalay Bay and the Mirage.
It would be quite odd to see the Bellagio sell as it is one of the most iconic spots on The Strip. And also seeing someone other than MGM own the MGM Grand would be odd too.
There have been recent concerns that just a few players own most of the spots on The Strip. Between Las Vegas Sands, MGM Resorts International, Wynn and now Caesars-El Dorado, there are just handful of major conglomerates. However, if MGM does selloff some of their spots, it will open the door for more competition.
Revenues For Macau Casinos Suffer In July
According to a report from the Gaming Inspection and Coordination in Macau, China, gambling revenues in the territory dropped 3.5% in July compared to last year’s numbers. The drop in revenue numbers is reportedly the result of a tempered demand from high rollers in the midst of a trade war with the United States and a slowdown in the world’s second-largest economy. It also hurts that there are massive protests ongoing in nearby Hong Kong as the local government has changed some laws, which residents don’t agree with.
Despite the decline, revenues still reached roughly $3.04 billion USD in the month. That number was just below analyst expectations.
Texas Man Rakes In Over $1.5 Million On $3 Bet At Texas Casino
A man from Adkins, Texas made the best decision of his life when he made his way to the Kickapoo Lucky Eagle Casino Hotel to test his luck on the slot machines. The man placed a $3 bet on a U-Spin Jackpot penny machine and ended up earning a humongous prize of $1,548,024.46. The lucky winner, who happened to be a platinum players club member at the casino, wasn’t alone at the time as he was attending the casino with one of his friends. There is a good chance the man will make a few more friends after taking home the big jackpot.