Mirage buys Boardwalk Casino

Monday, Dec. 22, 1997 | 11:52 a.m.

LAS VEGAS-- Mirage Resorts Inc. said today it's buying the 652-room Boardwalk Casino on the Las Vegas Strip, giving Mirage its only small, moderately priced property here.

But more importantly, the $135 million deal announced today gives Mirage 12 acres and 817 feet of Strip frontage. Combined with 30 acres Mirage already owns behind this frontage that was part of the Dunes golf course, Mirage will control 42 acres for potential development of a resort between its Bellagio resort and the Monte Carlo, which is a joint venture between Mirage and Circus Circus Enterprises.

"Hence, the Boardwalk and any future project that Mirage may choose to develop adjacent to the Boardwalk can be connected by monorail and other means to the adjoining properties," Mirage said in a statement.

Mirage Chairman Stephen Wynn said in a statement: "The boardwalk is profitable and we will continue to operate it as a mid-priced lodging and gaming alternative for Las Vegas visitors ... meanwhile, the land adjoining the boardwalk provides our company with an additional future growth opportunity."

"It's an investment in the future," said analyst William Schmidt of Gerard Klauer Mattison & Co., who explained that despite Wynn's assurances that Mirage will continue to operate the Boardwalk, the small casino eventually will likely go the way of the Dunes.

"He (Wynn) has got the place all locked up, and when he's ready to do something else, he'll blow up the Boardwalk and use the land for his next project," said Schmidt.