The gaming company said Tuesday that it is selling Circus Circus to a rival resort owner for $ 825 million. MGM also forms a joint venture with private equity firm Blackstone to buy Bellagio's property and lease it back to MGM Resorts. This deal values the Bellagio resort at $ 4.25 billion.
Opened in 1968, Circus Circus is one of the city's most recognizable casinos and still targets families with its theme park and cheap rooms. It is being sold to Phil Ruffian, who owns the nearby resort and the Treasure Island casino. The $ 825 million deal is expected to close by the end of the year, subject to regulatory approvals.
Blackstone takes control of Bellagio's land that is in the middle of the strip and is known for its dancing fountains. MGM will retain 5% equity in Bellagio, and the company will pay $ 245 million in annual rent to operate the hotel.