Phil Ruffin is officially owner of Circus Circus Las Vegas.
MGM Resorts International said Friday it closed the sale of Las Vegas Strip resort and its associated acreage for $825 million.
In a statement, the company said the deal was “part of the company’s commitment to its asset-light strategy designed to focus on MGM Resorts’ core business and maximize value for its shareholders.”
Ruffin, the 84-year-old billionaire, who also owns Treasure Island – now rebranded as TI – agreed in October to acquire the 4,000-room hotel-casino and surrounding land.
The Nevada Gaming Commission approved the transaction Thursday.
The site includes several undeveloped land parcels, including a 37-acre parcel at the corner of the Strip and Sahara Avenue that currently serves a festival ground. Ruffin told gaming regulators the location “is not for sale.”
The purchase price is comprised of $662.5 million in cash and a $162.5 million note due 2024. MGM Resorts use the proceeds “to further its capital allocation strategy” and pay down debt.
Ruffin said he plans to close a 10-acre recreational vehicle park adjacent to Circus Circus and it will be replaced with a swimming pool complex similar to Mandalay Bay’s on the south end of the Strip, which includes a wave machine, sand beaches and a lazy river water ride.
Ruffin said he planned to build a 2,000-seat theater that would house a new Cirque du Soleil show – The Illusionists, which is playing in New York. However, Ruffin said “we’re still in negotiations” to bring in the show to Las Vegas.
The Circus Circus casino itself will be renovated to include a “stadium-style gaming” area that Ruffin said has been successful at TI, and the property’s hotel rooms will be renovated over time, but the price point – Circus Circus offers some of the lowest nightly rates on the Strip – will not change.
Ruffin also told gaming regulators he would keep the Circus Circus Steak House, considered by many restaurant critics as one of the best restaurants on the Strip.
Also Friday, sportsbook operator William Hill US took over operations of Circus Circus sportsbook. However, Ruffin said he will retain operations of TI’s sportsbook.
Ruffin acquired Treasure Island from MGM in 2009 for $775 million. He also owns Casino Miami, which is located less than 20 minutes from Downtown Miami. The small Casino Miami has 1,000 slot machines and electronic table games and opened a race book with William Hill US on Dec. 5.
Ruffin has a current net worth of $2.8 billion, according to Forbes. He made a fortune in real estate, but his biggest deal was selling the New Frontier in 2007 for $1.2 billion. He acquired the Las Vegas Strip casino in 1998 for $165 million, earning accolades at the time for ending a six-and-a-half-year-long hotel workers’ strike against the property.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
