Question of the Day - 12 August 2021

Or do the REITs own any of the buildings / infrastructure?

Typically in deals like this the employees and customers on both sides of the deal get screwed. Vicki overpayed for these assets and has to make it up somewhere. As just one example of making it up somewhere the MGM properties are seeing their “rent” increase by $100,000,000 a year. That money comes right off the backs of employees and customers. These types of deals usually only benefit one group - shareholders - and are why Las Vegas is dying. The death will be slow, and then it will be fast. 

Dave, VICI owns the properties and land, all of it.
Just like a landlord would own a single family home, the entire home, and rent it out.  VICI will own the properties, and the operating companies will pay yearly rent to them - and then run them.  Here is a blurb on VICI:
VICI Properties Inc. is primarily engaged in the business of owning, acquiring, and leasing of real estate assets across gaming, hospitality, entertainment and leisure destinations. It operates through two segments: real property business and golf course business. The Company's portfolio consists of approximately 28 gaming facilities. The entertainment facilities are leased to various brands. Across approximately 47 million square feet, its properties are located in nine states, containing approximately 18,000 hotel rooms and features more than 200 restaurants, bars and nightclubs. Its portfolio also includes approximately 34 acres of undeveloped land adjacent to the Strip that is leased to Caesars. 

Not sure you're 100% correct. It's my understanding that Vici only owns the land upon which the hotels and casinos sit. At least in regards to The Strip properties. It's like they own an RV park and allow RV owners to park their vehicles their for a certain amount of rent.

The name of the game is still corporate greed, and sooner or later it's going to come up and bite the common customer, like it always does, and in the future, when it all unfolds, it'll be the customer holding the bag and the stockholders holding the money. What will it benefit the tourist industry, nothing, except higher prices, more and higher fees, more expensive parking, fewer and far between comps, and sooner or later the death of what we know as "Vegas the entertainment capitol of the world", Who knows what will Vegas morph into, but stockholders and management, will be long gone, laughing al the way to the bank.

If you build it or make it, people will come! We are built upon the principles of capitalism. Be it slavery or whatever, for the sake of the money, or whatever the cost, greed is the American way. It is what it is!  Vegas is a picture of corporate America. Walgreens, Walmart, and the like, are just like Vegas. Can you not see it. It’s our way and we would jump at the opportunity to have investment experiences such as under discussion herein. So what else is new under the sun?

@Brent Peterson is correct from how the story reads, Vici owns the land under the casino hotel, not the building itself. I think these casino companies are going to end up regretting having done this in the future when they don't own the land.

It takes at least 2 for a business deal.  Why is everything labeled "greed" by those who have less or didn't get in on the deal?  Customers have a choice.  They don't have to go spend their time and money at the casinos.  They choose to go.  Some go for the fun of it, knowing they won't come home with more in their pocket than they left with, and don't mind paying to unwind, have a few days by themselves, or whatever.  And then there are those that go trying to take a profit home from the casinos.  That could be labeled "greed" also.  Employees and customers getting screwed?  Yes and no.  Both have the ability to walk away - although it's much more complicated for the employees who need to make a living.  So while they have a choice, both choices could be bad for them.

I currently own MGM Growth and it owns the building and the land. Vici is buying MGM Growth so it is buying the land and the buildings. Not sure how they could raise the rent 100 million they had a lease. Odd I remember that when Binions downtown was sold they had several different groups that owned the land under the building and it was a pain to get it all sold.