https://www.reviewjournal.com/busine...tions-2448618/

Had been rumored for quite some time. Now official.

It'll be interesting to see what changes at the property once MGM takes control.

Ugh nooo....I love the video poker and the players club at the Cosmo, and this will almost certainly lead to a downgrade.

Technically, MGM is only acquiring the resort’s operations. The property itself goes to a different entity and (a different arm of) Blackstone will still have a significant piece of that.

Not surprised by the sale, as SenatorKevin said that had been rumored for a while and MGM has a decent amount of cash after selling off their properties. What’s surprising to me is the price tag. That’s a very solid ROI for Blackstone and some people at Deutsche Bank might wonder what could have been.

Considering what MGM did to Bellagio, I'd expect the same at Cosmo which is sad.

Standard real estate deal. You buy it all then sell the physical property with a lease back agreement. Many operating companies, especially in hospitality industry, do not want to own real estate with its financial burden. But the casino will be MGM. This is all quite standard now days.

What is to stop Blackstone and Vici from jacking up rents once the original terms end and telling MGM and Caesar's that if they want to stay on the strip, they need to pay up?

Probably a long term lease agreement.

No. The casino will belong to the REIT. A casino (casa = house) is a facility. MGM will only operate the casino.

Thats a distinction without a difference to customers however. Regardless of the deal structure, the MGM will now run the Cosmo just as they do the Bellagio (another Blackstone property).

This seems to suggest that LVS sold Venetian and Palazzo for an extremely low price because they didn't have the patience to wait for a recovery.

Parsing words, ok I will play. The root of casino might be casa but proper translation is home not house. I don’t think most people would say a synonym for casino is home or house.

A casino is a place one can go but is it the building or the business one goes to?

If the casino decides to redecorate, who picks the theme/motif? Who pays for it? Who controls the schedule of that job (assuming lease is in force).

The building will be in the reit but is it a casino without a license? Who holds the license?

Also if you walk in with $25 million and ask to speak to the casino boss who is it gong to be an MGM or REIT employee that you meet?

Who owns the gaming equipment? If it is leased as gam3 machines sometimes are, which entity pays the lease?

The dealers, waitstaff, security, etc will casino employees. Who signs their paycheck? If they are contract staff, who pays the contract fees.

Other than the location of the building, which entity will set the casino experience that you have? Stakes? Payouts? Games offered? Food choices and menus?

Thirty year lease with three ten year renewals. Even they lease rate is specified; increases 2% per year for fifteen years then tied to inflation with a 3% per year max after that.

The Cosmo players club is garbage to (smart) VP players. If (big if) they keep the same machines/paytables, this is a win.

MGM can (and should) do anything within the terms of the lease agreement to maximize profits. So, of course they will choose what types of games, food, entertainment, etc., that is offered. They may even decide that a licensed casino operation is not the best use and decide to offer something else instead.

I think the best term is MGM "manages" the facility.

Would you mind expanding this with some details, please?

I have listed what I currently believe to be true below - please correct me if I am wrong or missing something. My comparison is based on our long-standing Gold tier status at both corporations:

• Identity gives you 1 tier/identity point per $6 coin-in, whereas for Mlife its one point/10 tier points per $10 coin-in.
• Gold tier is 20,000 pts ($120,000 coin-in) at Cosmo vs. 75,000 pts ($75,000 coin-in) at Mlife.
• Points are redeemable at both sites for 1 pts = 1 cent.
• Valet parking is free for Gold tier members at both corporations
• Cosmo waives resort fees for Gold tier members. Mlife doesn't.
• Cosmo guarantees 2 free nights +2 guests free nights per year for Gold tier members. Mlife hos no such guarantee.
• Cosmo offers Gold tier members 2 for one daily at the Wicked Spoon. Mlife?

It was sold at a fire sale. Recovery period for convention business at Sands is years and years away.

FYP

The biggest problem with Cosmo (for me, anyway) is that they set the theo on the VP machines at perfect play. And then they even discount that. I put in nearly 7 figures one trip, and didn't even get the room charges taken off. Even Wynn would have given me RFB+ for that level of action (Judging by leon's thread; IIRC he puts in ~500K per trip)

Put a poker room...

It is true that if you play full-pay JoB at Cosmo, your ADT will be lower than if you play inferior machines at MGM. And thus likely your offers will be lower.

You do need to play -a lot- of full pay VP to get comped rooms at Cosmo separate from the automatic perks you get for your Identity tier. But the tier perks from Identity are far superior to the tier perks from mlife. And Cosmo gives the same tier credits for VP regardless of pay table, so it is extremely cheap (at least in EV) to get Gold tier at the their full-pay machines.

I’ve been able to get Gold at basically 0 EV from the 9/6 JoB just based on bounce-back offers and other promotions. And this gives you free resort fees, at least two comped rooms, and unlimited half-price buffets, none of which mlife offers.

I wasn't referring to inferior machines, I was doing an apples to apples comparison between full pay machines at Cosmo and mlife.

As far as the rest of it, it will likely come down to your play level. I get resort fees and meals comped at MLife, so identity's half price buffets, etc. don't mean a whole lot.


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Would this really do much good though?

It gives me a reason to go to the cosmo... that's about it.

tired of grinding the aria?

Watermelon juice cocktails coming soon to the Chandelier Bar!