Cherokee Nation Entertainment Gaming Holdings, a subsidiary of Cherokee Nation Businesses, has announced that it has signed an agreement with MGM Resorts International to purchase the operations of Gold Strike Tunica for $450 million in cash, subject to customary adjustments.
The purchase price represents an EBITDA multiple of approximately six times, based on 2021 Adjusted Property EDITBAR of $115 million. CNE Gaming Holdings will enter into a long-term lease agreement with VICI Properties, the Gold Strike property owner.
“Cherokee Nation Entertainment has a rich history of operating award-winning hospitality destinations in Oklahoma, and we are proud to continue our growth in gaming and bring the level of excellence we are known for to the Tunica area. We are excited for the team at Gold Strike Tunica to join the CNE family,” Mark Fulton, President of Cherokee Nation Entertainment, said.
Gold Strike is located on the Mississippi River in Tunica, approximately 30 minutes from downtown Memphis. The property features a 32-story hotel tower that has become one of the most recognizable buildings in Tunica. Gold Strike features more than 1100 oversized luxury guest rooms including 125 suites; the 50,000-square-foot casino includes a sportsbook; high-limit gaming area; conference and convention center; and award-winning dining options.
“We look forward to expanding our gaming and hospitality businesses as we execute on our strategic plan to grow our footprint outside of the Cherokee Nation Reservation. This acquisition will enable us to better serve our mission of growing Cherokee Nation’s economy while also having a significant positive impact on the local economies we serve,” Chuck Garrett, CEO of Cherokee Nation Businesses, said.
The transaction is subject to regulatory approvals and other customary closing conditions.