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MGM RESORTS INTERNATIONAL ANNOUNCES TRANSACTION TO ACQUIRE THE OPERATIONS OF THE COSMOPOLITAN OF LAS VEGAS
MGM Resorts to acquire operations for $1.625 billion
Significant expected synergies and strategic value in adding The Cosmopolitan to the MGM Resorts portfolio
Transaction advances MGM Resorts’ vision to be the world’s premier gaming entertainment company
MGM Resorts International announced that the Company has entered into a definitive agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas (the “property” or “The Cosmopolitan”) for cash consideration of $1.625 billion, subject to customary working capital adjustments.
The purchase price represents a multiple of approximately eight times adjusted EBITDA, inclusive of expected operational synergies and identified revenue growth opportunities.
Following the close of the transaction, MGM Resorts will enter into a 30-year lease agreement, with three 10-year renewal options, with a partnership among Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust, Inc. (“BREIT”), which will acquire The Cosmopolitan’s real estate assets. MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2% for the first 15 years and the greater of 2% or the CPI increase (capped at 3%) thereafter.
“We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio,” said MGM Resorts CEO & President Bill Hornbuckle. “The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world’s premier gaming entertainment company. We look forward to welcoming The Cosmopolitan’s guests and employees to the MGM Resorts family.”
“With over $500 million of capital invested to upgrade the property since 2014, The Cosmopolitan offers an incredible opportunity to expand our customer base and will provide greater depth of choices for our guests in Las Vegas,” said MGM Resorts CFO Jonathan Halkyard. “We believe that we can leverage MGM Resorts’ expertise, operating platform and other highly achievable synergies to continue providing best-in-class service, while driving growth for the property.”
Prior to the COVID-19 pandemic in the trailing 12 months ended February 29, 2020, The Cosmopolitan generated $959 million of net revenue and $316 million of adjusted EBITDAR1. In the second quarter ended June 30, 2021, the property generated $234 million of net revenue and $92 million of adjusted EBITDAR1.
The Cosmopolitan, a world-class contemporary luxury resort and casino, opened in December of 2010 and underwent significant capital improvements since Blackstone acquired the property in 2014. The property features:
- 3,032 rooms and suites that were renovated in December of 2018, most of which feature a terrace that overlooks the iconic Las Vegas Strip,
- a 110,000 square-foot casino, with high-end gaming areas for VIP guests,
- 26 on-trend food and beverage offerings, with 19 new concepts introduced in the last four years,
- a 3,200 seat theater (The Chelsea),
- Marquee nightclub and dayclub that hosts top DJs from around the world,
- 243,000 square feet of centrally located meeting space, featuring state-of-the-art technology to accommodate both large and small groups,
- 21,000 square feet of leased retail space, and
- a 40,000 square foot spa and fitness facility.
The transaction is expected to close in the first half of 2022, subject to regulatory approvals and other customary closing conditions.
Zitro, a leading global gaming company, has announced the successful launch of its first Wide Area Progressive (WAP) in Argentina, with over 45 slot cabinets initially installed in five gaming halls located at the Hipódromo de Palermo. The product selected for this project is the successful game “Mighty Hammer Ultimate” on Zitro’s premium cabinet, “Altius Glare.”
This system represents the first WAP in South America. A shared jackpot called “Mega Pozo Mighty Hammer” starts at 50 million Pesos and grows progressively, making it the largest accumulated prize in the region. The official inauguration was held on December 19th during the exclusive “Noche de Palermo” event, including a live performance by the renowned Argentinian band Los Totora.
Company Directors commented: “We are very pleased to introduce Argentina’s first WAP at the Hipódromo de Palermo. This project – for which we partnered with Zitro – reiterates Casino Club’s commitment to innovation, always under the premise of offering our customers an entertainment experience that exceeds all their expectations.”
For her part, Alejandra Burato, Regional Director of Zitro for LatAm, commented: “The launch of our first WAP in Argentina is a very important milestone for Zitro, as it confirms our company as a supplier of machines for WAPs. Attending the inauguration event and seeing firsthand how our products connect with players has been a pleasure, providing a unique and different entertainment experience in the region. Additionally, I want to highlight the excellent marketing surrounding the launch, contributing to its success. Finally, I would like to thank Casino Club for their trust and collaboration, which has allowed us to present this innovative proposal in such a renowned and emblematic place as the Hipódromo de Palermo.”
The SOFTSWISS Game Aggregator, the largest content hub in the iGaming industry, has secured Brazilian certification, becoming one of the first in the market to achieve this milestone.
Regulatory rules for iGaming come into effect in Brazil on 1 January 2025. According to them, platforms, aggregators, sportsbooks, and providers must undergo certification. Companies aiming to provide their services in Brazil in 2025 and beyond have been preparing for this transition throughout the year.
The SOFTSWISS team announces that its Game Aggregator is the first to fully comply with regulations, completing all necessary preparations and receiving the certificate to ensure smooth and efficient operations for its clients.
SOFTSWISS has also obtained certification for integration with the world’s largest game providers – Pragmatic Play, Evolution, and Playtech. These providers offer a diverse range of games tailored to suit the preferences of Brazilian players, from immersive live dealer experiences to engaging slots and table games, ensuring entertainment for every type of player.
According to recent Kantar research conducted in November 2024, the overall satisfaction index for the SOFTSWISS Game Aggregator is 8.1 out of 10. Remarkably, half of the respondents rated the product a 10 or 9. Customer support service satisfaction scored even higher, at 8.4 out of 10.
The Game Aggregator also boasts a key advantage: consistent 99.999% uptime, which is crucial for the iGaming business.
Ivan Montik, Founder of SOFTSWISS, notes: “According to our information, the SOFTSWISS Game Aggregator is the first aggregator fully prepared, both technically and legally, to work in Brazil when the new regulations take effect. This is a significant achievement that the team has worked on diligently and systematically. Our work doesn’t stop here – we are actively adding new providers to help our clients expand their presence in this promising Brazilian market, which is no longer ‘the sleeping giant’. It has awakened, and SOFTSWISS is at the forefront of this exciting transformation.”
To support this high level of performance, earlier this year SOFTSWISS appointed Rubens Barrichello, the Brazilian Formula 1 legend, as a Non-Executive Director, demonstrating its strong commitment to the local market. To ensure efficient operations and promptly address ongoing matters, SOFTSWISS also has a dedicated team of local business development managers in Brazil.
SOFTSWISS team will be available to discuss partnership in Brazil and other markets at the first major iGaming event of 2025 – ICE Barcelona, taking place on 20–22 January, at stand 2G42.
About SOFTSWISS
SOFTSWISS is an international technology company with over 15 years of experience developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka Affiliate Platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team, based in Malta, Poland, and Georgia, counts over 2,000 employees.
The Arizona Department of Gaming (ADG) has announced an impressive $42,508,200 in tribal gaming contributions to the Arizona Benefits Fund for the second quarter of Fiscal Year 2025. This milestone reflects the continued growth and success of the state’s tribal gaming industry, achieved through strong collaboration between the state government and tribal communities.
A Record-Breaking Year for Tribal Gaming
“This achievement is a testament to the strength of the partnership between Arizona and its tribal communities,” said Jackie Johnson, Director of ADG. “Consecutive record quarters in FY2025 highlight our shared commitment to fostering a thriving gaming industry. Since FY2004, total tribal contributions have exceeded $2.3 billion, significantly benefiting the state and its residents.”
Supporting Arizona’s Communities
The Arizona Benefits Fund receives 88% of tribal gaming contributions, channeling these funds into key areas that directly impact the state’s residents and natural resources. The Q2 FY2025 contributions will be allocated as follows:
- Instructional Improvement in Schools: $21,186,087
- Trauma and Emergency Services: $10,593,043
- Wildlife Conservation: $3,026,584
- Tourism Promotion: $3,026,584
- Problem Gambling Education, Treatment, and Prevention: $850,164
- ADG Operating Costs: $3,825,738
These contributions reflect the state’s commitment to using tribal gaming revenue for meaningful community support, from enhancing education and emergency services to preserving wildlife and promoting tourism.
A Growing Gaming Landscape
Arizona currently hosts 26 Class III casinos, regulated under the Arizona Tribal-State Gaming Compact. These casinos contribute a percentage of their gross gaming revenue to the Arizona Benefits Fund as well as to cities, towns, and counties. This model of tribal-state collaboration has proven instrumental in bolstering local economies and funding critical programs.
About the Arizona Department of Gaming
Founded in 1995, ADG is Arizona’s regulatory authority overseeing tribal gaming, racing, event wagering, and more. Beyond regulation, ADG is deeply committed to problem gambling education, offering support and resources to affected individuals and families through its Division of Problem Gambling and 24-hour helpline, 1-800-NEXT-STEP.
Looking Ahead
As tribal gaming contributions continue to break records, the partnership between Arizona’s government and tribal communities stands as a model for sustainable growth and mutual benefit. These contributions not only fuel essential state programs but also underscore the lasting value of collaboration in driving economic and social progress.
For a detailed breakdown of contributions by year and further information, visit the Arizona Department of Gaming’s official website.
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