MGM Resorts International (NYSE:MGM) inked a deal on Friday with billionaire Philip Anschutz’s AEG to build a 20,000 square-foot indoor arena in Las Vegas.
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The casino and hotel operator, which is based in Las Vegas, said the arena will be financed with equity contributions from each of the partners as well as privately-funded third-party financing.
Based on land west of the Las Vegas Strip, between MGM’s New York-New York and Monte Carlo casinos, the venue would be capable of hosting a wide-array of events, including sporting events like boxing matches and concerts.
"This project will help our company optimize our existing assets at New York-New York, Monte Carlo, CityCenter, and beyond,” said MGM Chief Executive Officer Jim Murren.
The facility, he said, will been an extension of MGM's legacy in entertainment and will drive “significant visitation and revenue” to the Nevada gambling hub.
Design and planning is “well underway” and the partners said they will begin seeking appropriate approvals immediately so they can soon break ground.
AEG, a wholly-owned subsidiary of privately-held Anschutz Company, has investments in major arenas across the world, including the Staples Center in Los Angeles, the Best Buy Theater in Times Square, N.Y. and the Mercedes-Benz Arena in Shanghai.