Mandalay Resort Group

{{Infobox company

|name=Mandalay Resort Group

|logo=Mandalay Resort Group Logo.gif

|former_name=Circus Circus Enterprises (1983–1999)

|fate=Acquired by MGM Mirage

|foundation={{Start date and age|1974}}
Winchester, Nevada, U.S.

|founders=William Bennett
William Pennington

|defunct={{End date and age|2005|4|25}}

|location=Paradise, Nevada, U.S.

}}

Mandalay Resort Group (formerly Circus Circus Enterprises) was an American hotel and casino operator based in Paradise, Nevada. Its major properties included Mandalay Bay, Luxor, Excalibur and Circus Circus, as well as half of the Monte Carlo. In terms of market capitalization, it was one of the largest casino operators in the world. Its stock traded on the New York Stock Exchange with the ticker symbol "CIR" and "MBG".

History

The company's longtime name originated with the Circus Circus casino, opened by Jay Sarno in 1968. The company was incorporated in 1974, as Circo Resorts Inc., owned by casino executives William Bennett and William Pennington. Circo was formed to take over management of Circus Circus, and the company would take ownership nearly a decade later.{{cite news |last1=Smith |first1=Hubble |last2=Smith |first2=Rod |title=Tale of two companies |url=http://www.reviewjournal.com/lvrj_home/2004/Jun-06-Sun-2004/business/24044172.html |work=Las Vegas Review-Journal |date=June 6, 2004 |archive-url=https://web.archive.org/web/20041220050107/http://www.reviewjournal.com/lvrj_home/2004/Jun-06-Sun-2004/business/24044172.html |archive-date=December 20, 2004}}{{cite news |last=Simpson |first=Jeff |title=Casino pioneer Bennett, 78, dies; Sahara owner's properties catered to middle class |url=http://www.reviewjournal.com/lvrj_home/2002/Dec-24-Tue-2002/news/20345961.html |work=Las Vegas Review-Journal |date=December 24, 2002 |archive-url=https://web.archive.org/web/20050308190449/http://www.reviewjournal.com/lvrj_home/2002/Dec-24-Tue-2002/news/20345961.html |archive-date=March 8, 2005}} In 1978, Circo Resorts was renamed Circus Circus Hotels Inc.,{{cite news |title=Licensing bid rejected |url=https://reviewjournal.newsbank.com/search?text=%22Licensing%20bid%20rejected%22&content_added=&date_from=&date_to=&pub%5B0%5D=1508AFD0E83DBED6 |work=Las Vegas Review-Journal |date=November 17, 1978 |access-date=January 11, 2025 |url-access=subscription |quote=A corporate name change for Circo Resorts Inc., operator of Circus Circus, to Circus Circus Hotels Inc.}} after the opening of Circus Circus Reno.

The company purchased the Silver City Casino and Slots-A-Fun Casino{{cite journal|title=The Burger King Revolution: How Las Vegas Bounced Back, 1983–1989|author=David G. Schwartz|date=2010|journal=Gaming Law Review and Economics|volume=14|issue=4|page=270|url=http://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?article=1121&context=lib_articles|accessdate=2016-03-18|archive-date=2015-04-02|archive-url=https://web.archive.org/web/20150402181508/http://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?article=1121&context=lib_articles|url-status=live}} in 1979 for $30 million, then refurbished both the interior and exterior.{{cite web|url=http://www.lasvegasadvisor.com/qod.cfm?qid=1863 |archive-url=https://web.archive.org/web/20150120033916/http://www.lasvegasadvisor.com/qod.cfm?qid=1863 |url-status=dead |archive-date=2015-01-20 |title=Question of the day |date=2009-12-12 |website=Las Vegas Advisor |accessdate=2015-01-19 }}

The company went public in 1983, as Circus Circus Enterprises,{{cite news |title=State board backs hotel stock plan |url=https://reviewjournal.newsbank.com/search?text=%22State%20board%20backs%20hotel%20stock%20plan%22&content_added=&date_from=&date_to=&pub%5B0%5D=1508AFD0E83DBED6 |work=Las Vegas Review-Journal |date=August 18, 1983 |access-date=January 11, 2025 |url-access=subscription}} and traded on the New York Stock Exchange. The company's properties found success in the 1980s offering a Las Vegas experience to families subsequently experimented upon by its competitors. Its converted Circus Circus (originally developed for the upmarket) and later Excalibur properties offered gaming opportunities for adults and separate non-gambling games and theme-park-style experiences for underage visitors under the same roof.

In 1983, Circus Circus purchased the Edgewater Hotel and Casino in Laughlin, Nevada for $17 million.{{cite news|title=Circus Circus purchases hotel, plans expansion|newspaper=Los Angeles Times|date=February 13, 1983|url=https://www.newspapers.com/clip/21957657/circus_circus_purchases_hotel_plans/|via=Newspapers.com|archive-date=July 18, 2018|access-date=July 18, 2018|archive-url=https://web.archive.org/web/20180718030600/https://www.newspapers.com/clip/21957657/circus_circus_purchases_hotel_plans/|url-status=live}}{{cite news|title=Circus Circus resort purchase plan approved|newspaper=Reno Gazette-Journal|date=January 13, 1983|url=https://www.newspapers.com/clip/21957651/circus_circus_resort_purchase_plan/|via=Newspapers.com|archive-date=July 18, 2018|access-date=July 18, 2018|archive-url=https://web.archive.org/web/20180718055136/https://www.newspapers.com/clip/21957651/circus_circus_resort_purchase_plan/|url-status=live}} The next year, the company bought the neighboring Colorado Belle casino from Advanced Patent Technology and John Fulton for $4 million.{{cite news|title=Making the games Vegas plays|newspaper=San Diego Union|publisher=via NewsBank|first=Rod|last=Riggs|date=August 25, 1985|accessdate=2012-06-26|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:SDUB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=11792915C660A2F9&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required}}{{cite news|title=Advanced Patent starts hotel-casino construction|newspaper=Wall Street Journal|date=October 8, 1979|id={{ProQuest|134309172}}}}{{subscription required}}{{cite news|title=Circus Circus buys casino from Gaming & Technology|newspaper=Wall Street Journal|date=February 16, 1984|id={{ProQuest|397964596}}}} {{subscription required}} The company planned to move the unprofitable Colorado Belle to make room for an expansion of the Edgewater.

The group subsequently developed the Excalibur in 1990, the Luxor in 1993 and the Mandalay Bay in 1999 for which the group was renamed.

The group entered into a joint venture in 1993 with Don Carano of Eldorado in Reno to develop and build Reno's largest and tallest megaresort titled Silver Legacy. The $350 million hotel opened on July 28, 1995. Circus Circus Enterprises held a majority stake in that Reno resort.

Circus Circus Tunica opened on August 29, 1994. It was rebranded in 1997 as Gold Strike Tunica and given a more upscale theme. The total cost for the remodel was estimated to be $125 million.{{cite web|url=https://www.scribd.com/doc/26363104/Case-Study-Circus-Circus-Enterprises-Inc-A-Gaming-Company |title=Circus Circus Enterprises, Inc.--A Gaming Company |accessdate=2010-07-05 |date=2010-02-04 |url-status=dead |archive-url=https://web.archive.org/web/20100610022723/http://www.scribd.com/doc/26363104/Case-Study-Circus-Circus-Enterprises-Inc-A-Gaming-Company |archive-date=June 10, 2010 }}

On March 20, 1995, Circus Circus Enterprises announced that it had agreed to acquire Gold Strike Resorts, a closely held budget casino owner and operator based in Jean, Nevada, in a deal valued at more than $600 million.{{cite news |first=KATHRYN |last=JONES |title=COMPANY NEWS; Circus Circus Agrees to Buy Gold Strike, Casino Owner |url=https://www.nytimes.com/1995/03/21/business/company-news-circus-circus-agrees-to-buy-gold-strike-casino-owner.html |work=New York Times |date=1995-03-21 |accessdate=2007-07-31 |archive-date=2011-11-16 |archive-url=https://web.archive.org/web/20111116190053/http://www.nytimes.com/1995/03/21/business/company-news-circus-circus-agrees-to-buy-gold-strike-casino-owner.html |url-status=live }} At the time of the acquisition, Gold Strike Resorts owned the Gold Strike Hotel and Gambling Hall, Nevada Landing Hotel and Casino, Railroad Pass Hotel and Casino and 50% of the under-construction Monte Carlo Resort and Casino.{{cite web |url=http://findarticles.com/p/articles/mi_qa3653/is_199506/ai_n8712813 |title=Circus Circus to acquire Gold Strike |accessdate=2007-07-31 |work=Corporate Growth Report Weekly |date=1995-06-05 |archive-url=https://web.archive.org/web/20070310115648/http://findarticles.com/p/articles/mi_qa3653/is_199506/ai_n8712813 |archive-date=2007-03-10 |url-status=dead }} The acquisition did not include the original Gold Strike near Boulder City, because the owners wanted to pass it on to their children.{{cite news|title=Merger plan gets approval|newspaper=Las Vegas Review-Journal|first=Ed|last=Vogel|date=May 23, 1995|url=http://global.factiva.com/redir/default.aspx?P=sa&an=lvgs000020020430dr5n001ow&cat=a&ep=ASE|archive-date=April 15, 2016|access-date=June 9, 2016|archive-url=https://web.archive.org/web/20160415153158/http://global.factiva.com/redir/default.aspx?P=sa&an=lvgs000020020430dr5n001ow&cat=a&ep=ASE|url-status=live}}{{subscription required|via=Factiva}}

In 1995, Circus Circus purchased the Hacienda from Archon Corporation.{{cite news |first= Howard |last= Stutz |title= Investors group sues Archon over stock redemption price |url= http://www.lvrj.com/business/9559687.html |work= Las Vegas Review-Journal |publisher= Stephens Media Group |date= 2007-09-04 |accessdate= 2007-09-04 |page= 1D |archive-date= 2007-09-30 |archive-url= https://web.archive.org/web/20070930015633/http://www.lvrj.com/business/9559687.html |url-status= live }} By this time, the Hacienda was dwarfed by the many new megaresorts that were being built, in particular the Luxor, which had just been recently completed. On December 10, 1996, the Hacienda was closed to the public after 40 years, and imploded later that month. This implosion was broadcast on the Fox Network as a part of their New Year's Eve 1996 telecast. Despite the implosion, parts of the old resort still stood, due to the building not falling into its footprint, but toppling into its parking lot. The next day a wrecking crew was brought in to bring down the remaining parts. In March 1999, it was replaced by the Mandalay Bay.

The group was also a partner with Mirage Resorts on the 1996 opening of the nearby Monte Carlo Resort and Casino.

Circus Circus Enterprises closed the Silver City Casino on October 31, 1999.

Following the completion of Mandalay Bay in 1999, the name of the company was changed to Mandalay Resorts Group.{{cite news|title=Circus Circus holders clear name change|newspaper=Las Vegas Sun|first=Gary|last=Thompson|date=June 18, 1999|url=https://lasvegassun.com/news/1999/jun/18/circus-circus-holders-clear-name-change/|access-date=January 12, 2025}}{{cite news |last=Berns |first=Dave |title=Circus No More |url=http://www.lvrj.com/lvrj_home/1999/Jun-18-Fri-1999/business/11396210.html |work=Las Vegas Review-Journal |date=June 18, 1999 |archive-url=https://web.archive.org/web/20000104071511/http://www.lvrj.com/lvrj_home/1999/Jun-18-Fri-1999/business/11396210.html |archive-date=January 4, 2000}}

On December 14, 1999, MotorCity Casino Hotel opened.

On May 23, 2002, the Mandalay Resort Group announced a second 1,122-room hotel tower at their Mandalay Bay property, with a cost of at least $200 million. Construction began on the tower in September 2002. The name of the tower, THEhotel at Mandalay Bay, was chosen in September 2003. The tower opened on December 17, 2003.

On June 4, 2004, one of Mandalay's largest competitors, MGM Mirage, announced a bid to acquire it for $68 per share plus assumption of debt. Although the proposal was announced after the stock market closed, the volume of trading in Mandalay stock on that day was quadruple the normal, with the stock closing at $60.27 per share.{{cite news |last=Smith |first=Rod |title=MGM Mirage Offer: Bid made for Mandalay |url=http://www.reviewjournal.com/lvrj_home/2004/Jun-05-Sat-2004/news/24040414.html |work=Las Vegas Review-Journal |date=June 5, 2004 |archive-url=https://web.archive.org/web/20041209041823/http://www.reviewjournal.com/lvrj_home/2004/Jun-05-Sat-2004/news/24040414.html |archive-date=December 9, 2004}} The ensuing negotiations between the two companies included at one point an announcement that the Mandalay board was rejecting the offer because of antitrust concerns.{{citation needed|date=January 2025}} On June 15, 2004, however, both companies' boards approved a revised offer of $71 per share. The agreement called for MGM Mirage to pay $4.8 billion and to assume $2.5 billion in debt.{{cite news |last=Mihailovich |first=Steven |title=Acquisition will build a giant in the local gaming industry |url=http://www.lvbusinesspress.com:80/articles/2004/06/18/news/news02.txt |work=Las Vegas Business Press |date=June 18, 2004 |archive-url=https://web.archive.org/web/20040629140516/http://www.lvbusinesspress.com:80/articles/2004/06/18/news/news02.txt |archive-date=June 29, 2004}} The transaction was completed on April 25, 2005 for $7.9 billion.{{cite news |last=Smith |first=Rod |title=MGM scales top of heap |url=http://www.reviewjournal.com/lvrj_home/2005/Apr-26-Tue-2005/news/26379012.html |work=Las Vegas Review-Journal |date=April 26, 2005 |archive-url=https://web.archive.org/web/20051130010619/http://www.reviewjournal.com/lvrj_home/2005/Apr-26-Tue-2005/news/26379012.html |archive-date=November 30, 2005}}{{cite news |title=MGM Mirage, Mandalay Resort finish merger |url=https://www.nbcnews.com/id/wbna7634660 |access-date=January 12, 2025 |work=NBC News |agency=Associated Press |date=April 25, 2005}}

MGM executives were confident that antitrust regulators would not require the sale of any of the two companies' properties.{{cite news|title=MGM Mirage cites 'juggernaut'|newspaper=Las Vegas Sun|author=Liz Benston|date=June 15, 2004|url=http://www.lasvegassun.com/news/2004/jun/15/mgm-mirage-cites-juggernaut/|accessdate=2013-04-21|archive-date=2015-10-17|archive-url=https://web.archive.org/web/20151017202422/http://lasvegassun.com/news/2004/jun/15/mgm-mirage-cites-juggernaut/|url-status=live}} Michigan law, however, forbade one company from owning multiple casinos, requiring the sale of either the MGM Grand Detroit or Mandalay's 54% stake in the MotorCity Casino.{{cite news|title=MotorCity Casino to be sold|newspaper=Detroit News|author=Joel J. Smith|date=June 17, 2004|url=http://global.factiva.com/redir/default.aspx?P=sa&an=DTNS000020040617e06h0005i&cat=a&ep=ASE|archive-date=June 8, 2015|access-date=June 15, 2016|archive-url=https://web.archive.org/web/20150608004704/http://global.factiva.com/redir/default.aspx?P=sa&an=DTNS000020040617e06h0005i&cat=a&ep=ASE|url-status=live}}{{subscription required|via=Factiva}} After some vacillation about which property to sell,{{cite news|title=MGM Mirage changes tactics in Detroit|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=December 4, 2004|url=http://global.factiva.com/redir/default.aspx?P=sa&an=LVGS000020041206e0c400001&cat=a&ep=ASE|archive-date=June 7, 2015|access-date=June 15, 2016|archive-url=https://web.archive.org/web/20150607193441/http://global.factiva.com/redir/default.aspx?P=sa&an=LVGS000020041206e0c400001&cat=a&ep=ASE|url-status=live}}{{subscription required|via=Factiva}} Mandalay accepted a $525-million offer for its interest in MotorCity from Marian Ilitch, the casino's second largest shareholder.{{cite news|title=Ilitch sews up deal for MotorCity Casino|newspaper=Detroit News|author1=R.J. King|author2=Joel J. Smith|date=March 16, 2005|url=http://global.factiva.com/redir/default.aspx?P=sa&an=DTNS000020050316e13g0002d&cat=a&ep=ASE|archive-date=June 7, 2015|access-date=June 15, 2016|archive-url=https://web.archive.org/web/20150607194015/http://global.factiva.com/redir/default.aspx?P=sa&an=DTNS000020050316e13g0002d&cat=a&ep=ASE|url-status=live}}{{subscription required|via=Factiva}}