The Grand Victoria is now the property of the proud Eldorado Resorts. This comes after MGM Resorts International has eventually managed to complete of the property in Elgin, Illinois. MGM initially acquired possession of the property through the 2005 deal with Mandalay Resort Group.
But with a selling price of $327.5 million in cash that was paid by Eldorado Resorts to MGM Resorts Casino and its partner, MGM Resorts Casino are laughing all the way to the bank. But even with having to halve this figure wit their partners, MGM Resorts Casino earned $162 million.
GRAND VICTORIA A NATURAL FIT IN NEW ROSTER
The Grand Victoria Casino is one of ten riverboat casinos in Illinois and is docked on Fox River. This fairly small casino nominally serves the Chicago area. However compact it may be, it does still feature over 100s slot machines, a selection of table games, live poker four restaurants.
Based on its revenue figures, the Grand Victoria Casino consistently punches above its weight. Even though it considerably smaller than many competitors, it consistently places as the 3rd largest gaming location in the state. What makes its success even more astonishing is that it is a 45-minute away from Chicago and there are several other gaming establishments closer to the city, with many of them on the way to the Grand Victoria.
Despite its success, the Grand Victoria just did not feel ‘right’ when viewed together with its stalemate casinos. The Bellagio, MGM Grand, and Mandalay Bay are all known for their over the top and opulent character. While its not a shack, the Grand Victoria seems much better suited to be a part of the Eldorado portfolio, which is packed with smaller regional casinos outside of Las Vegas.
MGM’S BOYD DEAL LEFT GRAND VICTORIA MOOT
Many felt that MGM’s desire to sell the Grand Victoria was a bit… odd since MGM seemed to be on a drive promoting sports betting in every possible location. The state of Illinois is one of many that are strongly considering introducing legalized and regulated sports betting and following in the footsteps of the successful New Jersey sports betting and New Jersey online casinos.
So it would seem that by selling Grand Victoria that MGM were ruling themselves out any future Illinois sports betting industry since it’s the only property they owned in the state. But if we take a closer look at their recently deal with Boyd Gaming actually gives them access to this potential cash cow. Thanks to their agreement, MGM will dip its toes into the Illinois market through Boyd’s Par-A-Dice Hotel Casino in East Peoria, Illinois.
The MGM /Boyd partnership spreads MGM reach into 15 states. While sports betting is currently permitted in all of those states, there is a strong certainty that they will be within the next 5 years.
MGM Resorts have also strengthened their already impressive sports betting dream by teaming up with key partners. The first is with GVC Holdings, who will be their strategic partner and should be able to basically guarantee that they will bring retail and online sports betting to the market. MGM Resorts have also partnered with the NBA. The fall of PASPA now adds legitimacy to MGM in the eye of professional sports teams.
Image by Grand Victoria Casino.