1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

Boyd Selling Its Stake in Borgata to MGM for $900 Mln +

Discussion in 'Casino Industry & Development' started by Chuck2009x, May 31, 2016.

  1. Chuck2009x

    Chuck2009x VIP Whale

    Joined:
    Apr 5, 2009
    Messages:
    4,072
    Trips to Las Vegas:
    16
    Boyd Gaming Corporation today announced that it has entered into a definitive agreement to sell its 50% equity interest in Marina District Development Holding Company, LLC, the parent company of Borgata Hotel Casino & Spa in Atlantic City, New Jersey, to MGM Resorts International for consideration of $900 million, as well as a 50% share of any future property tax settlement benefits received by Borgata.

    http://www.marketwatch.com/story/boyd-gaming-to-sell-its-50-interest-in-borgata-2016-05-31
     
    • Like Like x 1
  2. bshowell

    bshowell VIP Whale

    Joined:
    Oct 3, 2004
    Messages:
    1,226
    Location:
    DMV
    Trips to Las Vegas:
    11
    I wonder if this means a switch from the Borgata card to MLife? That could work out well for those of us on the East Coast who frequent both Atlantic City and Vegas.
     
    • Like Like x 4
  3. ant1433

    ant1433 Low-Roller

    Joined:
    Sep 5, 2005
    Messages:
    195
    Location:
    nj
    I like it. I love the Borg. Only went to Cet so I could use my comps at strip props in Vegas. I am pleasantly surprised with CET, but still not as nice as the Borgata. I will be going back to the Borg soon.
     
  4. NewOrleansSlimm

    NewOrleansSlimm Low-Roller

    Joined:
    Mar 28, 2015
    Messages:
    644
    Location:
    New Orleans, La
    Trips to Las Vegas:
    8
    wonder if the card match will stop once it all goes through
     
  5. Flowers

    Flowers VIP Whale

    Joined:
    Mar 29, 2014
    Messages:
    1,156
    Trips to Las Vegas:
    30
    Bshowell, I agree. This would be GREAT if it is fully connected to Mlife. I'm seven stars at CET and usually stay at Caesars in AC to maximize comps (and I like being on the ocean) but I would totally split my play with Borgata if I could maximize comps in Vegas. This would be fantastic and I think would really hit CET in AC.
     
  6. TAR456

    TAR456 Tourist

    Joined:
    Mar 17, 2016
    Messages:
    32
    Trips to Las Vegas:
    1
    Now, what will Boyd do with their money?
     
  7. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

    Joined:
    Nov 2, 2001
    Messages:
    12,923
    Location:
    Tennessee
    Trips to Las Vegas:
    37
    Sounds like pay off debt, like their recent Aliante and Cannery Casino purchases.
     
  8. nostresshere

    nostresshere Mr. Anti Debit Card

    Joined:
    May 4, 2009
    Messages:
    11,119
    Location:
    TN
    Trips to Las Vegas:
    19
    Borgata is one classy casino. AC is taking some serious hits, but a classy joint with connections to Vegas might do okay.
     
    • Like Like x 1
  9. spdandpwr

    spdandpwr Low-Roller

    Joined:
    Feb 25, 2016
    Messages:
    808
    Location:
    East Coast
    I think adding this will only help AC as none of the other non-AC casinos have points that accrue towards properties outside of their respective areas.
     
  10. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,712
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    Ooh, that's a nice payday for Boyd. I wish the price on Rio would come down...
     
  11. Brooklyn B

    Brooklyn B Tourist

    Joined:
    Dec 12, 2013
    Messages:
    45
    Location:
    Queens,NY
    Trips to Las Vegas:
    35
    Word is they will bring in Mlife to Borgata. Just a matter of how/when they make the transition after the deal is done.
     
  12. Its Only Money

    Its Only Money Low-Roller

    Joined:
    Oct 7, 2007
    Messages:
    634
    Location:
    Ohio
    Trips to Las Vegas:
    10
    This could give me some incentive to go to AC.
     
    I need one more trip to up my frequent flier level
  13. petp13

    petp13 Low-Roller

    Joined:
    Sep 22, 2012
    Messages:
    101
    Location:
    NYC
    Trips to Las Vegas:
    7
    "We are excited about the opportunity to bring our market-leading loyalty program, M life Rewards, to the resort and integrate our operations, to position Borgata for further growth."

    Sounds like M Life is coming to AC. WOOHOO! finally a reason to go there. :thumbsup:
     
  14. Fligster

    Fligster High-Roller

    Joined:
    Mar 31, 2012
    Messages:
    829
    Location:
    South Jersey
    Trips to Las Vegas:
    19
    As Mlife Gold, I "traded up" to Borgata Black Label. My concern is that once Mlife goes in, not all existing black label benefits (10 comp dollar Buffet, Amphora Lounge Access) will be given to Mlife Gold. Will have to wait and see.
     
    15th Anniversary Trip
    Pink17 ITSM Conference
  15. jr7110

    jr7110 VIP Whale

    Joined:
    Jan 13, 2009
    Messages:
    1,017
    Trips to Las Vegas:
    28
    I was just at Borgata for the Memorial Day holiday and am thrilled that MLife is taking over! I never liked the Borgata players program anyway, and am exclusively an MLife customer in Vegas, so this will be perfect for me to be able to keep up my Mlife card status when I can't get to Vegas. The one thing that people will complain about is the resort fee increase. Borgata now charges about $10 a night as a resort fee but it will probably go up when MLife takes over.

    The press release says that the transaction will be completed in third quarter 2016. I looked up MGM Resorts' fiscal year and their third quarter is from July 1st to September 30th, so it should be a done deal by the end of September (just in time for everyone's MLife points to vanish from the previous year anyway lol).
     
  16. Grid

    Grid VIP Whale

    Joined:
    Jan 17, 2011
    Messages:
    1,478
    Location:
    Chicago
    Trips to Las Vegas:
    31
    I talked to my host over at Borgata today. It will be awhile before they roll out the MLIFE cards but they most certainly will. He also seems to think the tier rate will be closer to that in Detroit then Vegas. Vegas gets you 10 TC's for every point. Detroit gets you 1 TC's per point. So its 10 times easier to level up in Vegas.

    I'm sure the resort fee will triple as well! But outside of that, MGM held a stake in the Borg forever. So I wouldn't expect too much to be tinkered with.

    What I want to know is... How does this effect the tax appeal settlement? AC said the Borg was worth about $2BIL. After appeals the new "value" was $870MIL. If they just sold HALF of the Borgata for $900MIL, couldn't the city come back and say they were right? That the realized value is actually 1.8BIL!
     
  17. hammie

    hammie VIP Whale

    Joined:
    Sep 18, 2006
    Messages:
    2,378
    Trips to Las Vegas:
    5
    The whole issue of the tax appeal is a real mess, the previous administration could have settled it for much less but decided to go to court and lost. The City owes Borgata $180 million and I read in the Press of AC that this refund will be split between MGM and Boyd. There was a proposal for the casinos to enter into a PILOT (Payment In Lieu of Taxes) program, but it needs the approval from Trenton. I read that the Borgata was upset that the city has not issued the refund, so they withheld tax payments which precipitated the recent crisis in AC.

    If I were the tax collector for Atlantic City, I would absolutely send them a new bill based on the current market value for the property. For what its worth, I think the Trump Plaza was going to be sold for $21 Million a couple of years ago. The $2 Billion Revel was sold for $85 million last year, and the Trump Marina was sold for $39 million a couple of years ago and renamed Golden Nugget.
     
  18. rycelover

    rycelover Low-Roller

    Joined:
    Jan 27, 2016
    Messages:
    480
    Location:
    One step closer to a casino!
    Trips to Las Vegas:
    16
    I like this new development and the recent news confirms what a B host told me several months ago that they're planning on merging their player's club with a "major" LV player that would allow us to leverage our play with LV properties. Sweet!
     
  19. bshowell

    bshowell VIP Whale

    Joined:
    Oct 3, 2004
    Messages:
    1,226
    Location:
    DMV
    Trips to Las Vegas:
    11
    Ah good so MLife IS coming. Awesome. My sisters and I hit up AC once or twice a year and have always wished there was an MLife presence since we're not huge fans of CET and rarely stay CET in Vegas. Hopefully they don't screw this up...
     
  20. lithium78

    lithium78 High-Roller

    Joined:
    Sep 8, 2013
    Messages:
    899
    Location:
    New Jersey
    Trips to Las Vegas:
    4
    MGM just bought out Boyd's half of the Borgata for $900 million and they will be adding the casino to MLife. How does everyone feel about this? On one hand, it'll be nice to be able to use local status from Borgata in Vegas, but on the other hand, isn't MGM stingy with comps?