The New Jersey Casino Control Commission approved on Wednesday MGM Resorts International’s purchase of a 50% stake in Borgata Hotel Casino & Spa from fellow gambling operator Boyd Gaming. The two companies have been partnering in running Atlantic City’s most profitable casino since shortly after it opened doors back in 2003.
Casino commissioners voted 3-0 to approve certain lease agreements as those are needed for the acquisition deal to be completed and MGM Resorts to be given full control over the hotel and casino complex. Boyd Gaming will receive the amount of $900 million in exchange for giving up its 50% stake. In addition, the operator will be paid half of any tax settlement reached between Borgata’s new owner and Atlantic City.
The transaction is expected to be completed sometime in the third quarter of the year. MGM Resorts will gain full access to Boyd Gaming’s customer database and will integrate the existing customer loyalty program with its own. Thus, the venue’s new owner will be fully in charge of the daily operations once the sale is finalized.
It was early in June when Boyd Gaming announced that it wanted to sell its 50% stake in the hotel and casino property to its long-standing partner. During a meeting with the New Jersey Division of Gaming Enforcement, the state gambling regulator gave the nod to the transaction.
MGM Resorts International divided its operations between two separate companies just before news about the acquisition deal emerged. One of the companies – a real estate investment trust, owned and operated a number of casino properties, and the other was in charge of the casino resort in question. MGM Resorts then leased the casino venues back from the REIT, in which the casino operator owns a majority stake.
Once the acquisition deal is completed, the Borgata will be owned by the trust and will be leased back to MGM Resorts. The casino operator will then sublease the hotel and casino complex to Marina District Development Corp., a joint venture that currently controls the Borgata.
