MGM May Be Mulling Marriage with M Resort
Posted on: December 30, 2022, 04:12h.
Last updated on: December 30, 2022, 05:16h.
The new year hasn’t officially arrived. But the 2023 Las Vegas rumor mill is already spinning, as speculation swirls that MGM Resorts International (NYSE:MGM) may be interested in acquiring the M Resort Spa Casino in Henderson, Nevada.
![M Resort](https://www.casino.org/news/wp-content/uploads/2022/12/MResort-142x80.jpg)
Scott Roeben, also known as Vital Vegas, reports that a “reliable source” said that MGM is in early-stage talks with Penn Entertainment (NASDAQ:PENN) regarding a potential sale of the venue, and that the discussions were constructive.
Casino sales can take awhile, due diligence and all that, so we may not hear any official word about the sale of M Resort for some time to come. There’s also a chance the parties involved fail to come to an agreement, and we’ll never hear anything further about it,” wrote Roeben.
An estimated price for M Resort wasn’t mentioned. But with the casino-hotel being an off-Strip venue, it’s unlikely to command the $1 billion-plus price tags that are so common with Strip integrated resorts.
M Resort Sale Possible
For now, the idea of MGM acquiring M Resort is merely speculation. It’s worth noting that in the gaming industry, there are more rumored than closed deals.
Specific to the M Resort, Penn selling the operating rights to the venue would be interesting for multiple reasons. First, the company said in October it’s committing $206 million to double the size of the property. Second, if Penn does sell M Resort, it would effectively eliminate the operator’s Las Vegas footprint following the recently completed sale of the Tropicana’s operating rights to Bally’s (NYSE:BALY).
If Penn parts with M’s operating rights, its lone Nevada venue would be Cactus Pete’s Resort Casino in Jackpot. Any transaction involving M Resort would be for the operating rights, because the real estate assets are owned by Gaming and Leisure Properties (NASDAQ:GLPI).
Additionally, MGM has long favored an asset-lite model. The largest operator on the Las Vegas Strip leases all of its US venues.
M Buy Would Further Cement MGM’s Vegas Dominance
It’s not clear if Penn is holding talks with other suitors regarding M Resort. If the Pennsylvania-based company opens the bidding process in an effort to draw the highest possible price, it’s likely there would be multiple suitors.
Those could include operators, such as MGM, that are looking to bolster Las Vegas footprints, as well as those that currently have limited or no exposure to Nevada. As for MGM, adding M Resort to its portfolio would be a sensible addition and one that solidifies its dominant Las Vegas perch. The company has recently been active, acquiring the Cosmopolitan and selling the Mirage. Such transactions aren’t always seamless.
“There are pros and cons whenever a new company takes over a casino’s operations. The buzz out of Cosmopolitan isn’t especially flattering to MGM Resorts, and Cosmo has taken a significant hit on review sites. There has also reportedly been an exodus of key executives, not uncommon in such ownership changes,” added Roeben.
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Last Comments ( 3 )
I just hope whomever runs your gaming slots is fired because setting your slots to not pay anything is a crime and yes the person needs to be slapped with a fine because in your eyes they are your hero but we know how it feels to go home after being ripped off by your slot technician who thinks hes a hero setting ALL YOUR SLOTS NOT TO PAY AT ALL !!! After being at your casino we will never ever return unless you prove your casino slots at least pay something back !!! I hope whomever buys your casino will fire the idiots running your slots to pay nothing back !!
My wife and i have been to the M casino several times and we will not go again because we love the slot games and your slots are so tight and never pay anything back causing us to go home broke and defeated !! most casinos have a payback making us feel like we have had fun and the casinos like the station casinos keep us on the gaming floor all day most of the time !!! Your casino is nice but being ripped off has made us feel like you just don't care about your locals !! We have lived here in Las Vegas for 3 years now as we are retired and would love to stop in to play but every time we have been very discouraged at every slot we have played !! I have been a die hard raiders fan all my life and playing at your casino makes us feel like every raiders season for the last 20 years losers !! I'm sure your laughing all the way to the bank but your not taking anymore of my cash to do so !!! Live with that M casino !!! Paul Duval
I hope MGM does not purchase the M resort this is a locals place and I would not go back again