This week’s casino news is strictly MGM-focused. They’ve been in the news for all sorts of good reasons, so let’s get you up to speed.
MGM Resorts Expands Their Grip On Las Vegas Strip
MGM Resorts is expanding their footprint in Las Vegas. While they already have a number of properties on The Strip, they’ve now purchased The Cosmopolitan. The deal put them out a good $1.625 billion but it is a lot cheaper than the original $5 billion price tag that the property owners were originally hoping for. The reason for the significant drop in price is because Blackstone – the previous owners – will remain the land lords of the property.
MGM and Blackstone will be in a 30-year agreement that will be split up into ten-year increments. In total, Blackstone will receive $200 million in annual rent payments and could potentially haul in around $6 billion in rent by the end of those 30 years.
This deal for the Cosmopolitan will be finalized before the second half of the 2022 year. Everything is expected to check out as these two companies have worked together multiple times in the past with zero issues. Now MGM gets to run a prime property in the heart of The Strip, right in City Center.
MGM Resorts Donates $500K To Urban Farming Initiative In Las Vegas
Speaking of MGM Resorts, they’ll be giving back to the community via an urban farming initiative they’ve launched. The company donated half a million dollars to the Las Vegas Historic Westside in order to fund an urban agricultural farming facility.
The Historic Westside area has been hammered by food shortages for years now and this new farming facility could help overcome those difficult challenges. The Westside was just one of many communities picked for this program during 2021 and should allow residents cleaner and safer food options.
Westside has had a rough past. They were wildly segregated during the 1950s and even into the 1960s. African American residents were allowed to work in casinos but couldn’t visit them on their own if they wanted too. Some blame desegregation for the economic decline in their area while others believe it is the best thing they could have done since that time. While many people frown upon gambling and gaming companies, this is one of the positive sides of working with these types of brands. They have tons of money to pass around and in this case, they’re using some of it for a good cause.
MGM Resorts Picked By Osaka
MGM Resorts has some good news to share: they officially told all of their investors that Osaka has picked them to create a phenomenal integrated resort development in the city. The early budget for this exciting new casino was originally listed at $9.1 billion but since being picked they have increased that total to $10 billion. They believe that Osaka and Japan are the perfect places to settle down and build a great new casino, which is why they don’t want to hold back during the creation. Of course, building and operating in Japan has been a bit of a marathon and many other suitors dropped out. MGM endured through it all and they’ve been rewarded.
The president and CEO of MGM, Jim Murren, has frequently visited Japan and Osaka to show how committed their company is to the region. This is likely a strong factor in being picked for this development.
As it stands right now, an MGM operated Osaka resort could bring in 20 million annual visitors to the property. They could employ up to 15,000 people, which will be a big boost to the local economy. And being one of the first to open in Japan, this resort is definitely going to be one that will be talked about for generations once its built.