Las Vegas Sun

March 19, 2024

MGM selling Circus Circus for $825 million

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Steve Marcus

An exterior view of Circus Circus Friday, June 1, 2018.

Updated Tuesday, Oct. 15, 2019 | 1:43 p.m.

MGM Resorts International announced today that it is selling Circus Circus for $825 million to an affiliate of Treasure Island owner Phil Ruffin.

MGM will use the proceeds from the sale “to enhance its capital allocation strategy and complement its strategic and operational flexibility,” Chairman and CEO Jim Murren said in a statement.

MGM said it has entered a “definitive agreement” to sell the property and that the transaction is expected to close by the end of the year, subject to customary closing conditions, including receipt of necessary regulatory approvals.

The $825 million purchase will be made up of $662.5 million in cash and a $162.5 million note due 2024, MGM officials said.

MGM expects to record a third-quarter impairment charge of about $220 million in connection with the transaction, the company said in a news release.

Ruffin, noting that Circus Circus has anchored the north end of the Strip for more than 50 years, said he was “excited to add it to my casino portfolio.”

MGM acquired Circus Circus in connection with its acquisition of Mandalay Resort Group in 2005. Opened in 1968, the casino has 2,300 employees and includes the Adventuredome amusement park, a 10-acre RV park and a 37-acre festival grounds.

“On behalf of the entire MGM Resorts family, we would like to thank our dedicated employees who have worked diligently to ensure the long-term success of this iconic property,” said Ann Hoff, president and COO of Legacy Portfolio Properties.