MGM May Be Mulling Marriage with M Resort

The new twelvemonth hasn’t officially arrived, but the 2023 Las Vegas rumor mill around is already spinning as speculation swirls that MGM Resorts International (NYSE:MGM) may live interested inwards getting the M Resort Spa Casino in Henderson, Nevada.

Scott Roeben, also known as Vital Vegas, reports that a “reliable source” said that MGM is inwards early-stage talks with Penn Entertainment (NASDAQ:PENN) regarding a potential cut-rate sale of the locus and that the discussions were constructive.

Casino sales can buoy use up awhile, due industriousness and all that, so we may non hear any prescribed word almost the sales agreement of M Resort for some clip to come. There’s also a chance the parties mired conk out to follow to an agreement, and we’ll never try anything farther most it,” wrote Roeben.

An estimated price for M Resort wasn’t mentioned, but with the casino-hotel existence an off-Strip venue, it’s unlikely to require the $1 billion-plus toll tags that are so mutual with Strip structured resorts.

M Resort Sale Possible, Would Be Interesting Move for Penn

For now, the idea of MGM acquiring M Resort is only conjecture and it’s worth noting that in the gaming industry, in that respect are to a greater extent rumored than shut deals.

Specific to the M Resort, William Penn selling the operating rights to the venue would follow interesting for multiple reasons. First, the companionship said inwards October it’s committing $206 one thousand thousand to threefold the sizing of the property. Second, if William Penn does sell M Resort, it would in effect decimate the operator’s Las Vegas step followers the lately completed sale of the Tropicana’s operating rights to Bally’s (NYSE:BALY).

If Penn parts with M’s operating rights, its lone Nevada locus would be Cactus Pete’s Resort Casino inward Jackpot. Any dealing involving M Resort would be for the operating rights because the existent estate assets are owned by Gaming and Leisure Properties (NASDAQ:GLPI).

Additionally, MGM has long favorite(a) an asset-lite model. The largest manipulator on the Las Vegas Strip leases all of its US venues.

M Buy Would Further Cement MGM’s Vegas Dominance

It’s not shed light on if Penn is holding talks with other suitors regarding m Resort. If the Pennsylvania-based fellowship opens the summons outgrowth inward an travail to get out the highest possible price, it’s potential in that respect would live multiple suitors.

Those could include operators, such as MGM, that are looking to bolster Las Vegas footprints as substantially as those that currently experience special or no exposure to Nevada. As for MGM, adding m Resort to its portfolio would follow a sensible addition and I that solidifies its dominant Las Vegas perch. The fellowship has latterly been active, acquiring the Cosmopolitan and selling the Mirage. Such transactions aren’t e'er seamless.

“There are pros and cons whenever a young fellowship takes over a casino’s operations. The bombinate out of Cosmopolitan isn’t especially flattering to MGM Resorts, and Cosmo has taken a significant hit on look back sites. There has also reportedly been an hegira of Florida key executives, not uncommon in such ownership changes,” added Roeben.