MGM Sells Circus Circus Reno

MGM Resorts International is exiting the Reno market by selling their two Reno properties Circus Circus Reno and Silver Legacy Resort Casino Reno to Eldorado Resorts for $72.5 million.

MGM and Eldorado already had a 50/50 joint ownership stake in Silver Legacy so that will be an easy transition.

Circus Circus is a little more interesting since there's also a Circus Circus in Las Vegas. MGM's willingness to sell the Reno version might give an indication of how they feel about Circus Circus Las Vegas. MGM has insisted that Circus Circus isn't going anywhere and is a valuable part of their Las Vegas portfolio, but this transaction makes me think twice about what the future may hold.

Eldorado is also an interesting company. They recently merged with MTR Gaming and have been doing pretty well since then. Eldorado's expansion makes me wonder if they'll ever make a run at Las Vegas. They sort of remind me of Penn National - the company that recently bought the Tropicana.

Would a Circus Circus Las Vegas sale to Eldorado Resorts sometime in the future be completely out of the question? I think it could happen.