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MGM Resorts Bids Farewell to Illinois Grand Victoria Casino after Boyd Gaming Deal

MGM Resorts International has finally reached the final stage of its Grand Victoria Casino sale which has been in the works ever since this April when it was initially announced. The riverboat gambling facility located in Elgin, Illinois is now officially a property of Eldorado Resorts which purchased it for some $327.5 million in cash.

Ever since the beginning of this spring one purchase arrangement has been in the works and Illinois’ gaming field have been eagerly anticipating more development on it. Major casino developer MGM Resorts has been making an attempt to negotiate the most favorable conditions when it comes to the sale of its gaming property. Grand Victoria is considered a profitable location as it is located in the proximity of Chicago and this achieves the goal of attracting players from the booming capital.

A subsidiary company of the casino developer owned a total of 50 percent of the stocks in the riverboat casino venue. The remaining 50 percent of the company is owned and operated by RBG LLP, a subsidiary of Hyatt Hotels Corporation. The two entities announced in a joint statement that they have reached the point of their development which prompts them to sell the unique facility which has on offer a more thrilling entertainment options than a regular brick-and-mortar casino.

The purchase took place under the previously established conditions as neither of the parties involved had anything different in mind for the deal and which could be purchased by Eldorado Resorts. It should be taken into account that MGM Resorts bagged a total of $162 million which is half of the proceeds once the deal was negotiated. The casino developer managed to acquire half of the property back in 2005 as a part of the arranged merger of MGM Mirage of Mandalay Resorts Group inked.

This is the amount following the mandatory transaction costs which occurred. Now that the acquisition is finalized an adjacent land lot is being sought in order to facilitate the future development of the casino venue.

Gambling Prospectives in the State

The casino venue which is currently in operation has a total of 1,088 slot devices on offer, giving all players the chance to give heir luck a try and defining the venue as one of the larger ones – the third-largest on a state level. It is among the ten floating casino venues within the state of Illinois which is situated on the Fox River.

There are also 30 table games, offering a wide variety of games, as well as a luxurious poker room featuring 12 poker tables. When it comes to the non-gaming offerings available on site, there are four restaurants, a banquet hall, as well as venues suitable for larger events and concerts.

However, even though the property has been performing well in the grand scheme of things, the community felt like it did not fit well with the remaining properties overseen by the casino developer and operator. This sale has been considered a good move since Eldorado is usually associated with smaller operations of this type, located outside of the booming fabulous Las Vegas.

The casino developer now has a total of 21 casino venues in operation sprinkled across eleven states which elevates the overall tally to some 22,000 slot machines and video lottery terminals. Another factor which should be taken into account is the highly discussed recent partnership between MGM Resorts and Boyd Gaming which strives to provide the casino developer with a foothold in the sports betting field.

It is going to provide the casino developer and operator with the chance to operate at the Par-A-Dice Hotel and Casino situated in East Peoria. Illinois is one of the states which considers sports wagering on a state level and this could happen as early as next year.

The Illinois General Assembly adjourned in the last days of May, several weeks after the overturning of PASPA. There were two Senate bills, SB 2478 and SB 3432 which did not receive the needed number of votes in order to progress ahead and be turned into laws. However, the way has been paved and next year could potentially witness legalization of sports wagering on a state level.

 Author: Harrison Young

Harrison Young is an experienced writer, who started his career almost 8 years ago. Prior to joining our team at CasinoGamesPro, he worked as an editor for a small magazine.