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Key Points:
- There are no current plans to demolish Circus Circus, and there have even been minor improvements made to the property recently.
- I speculate that Circus Circus could be on the chopping block in the near term due to the (slowly) rising status of the north Strip with Resorts World and Fontainebleau opening.
- While we no longer have visibility into the resort’s financials, we do know that Circus Circus was the profitability laggard of the MGM Resorts family before being sold to Phil Ruffin.
It kills you to even think about the possibility.
Circus Circus was the destination that introduced you to Las Vegas as a kid and the spot you still visit today to get that “Old Vegas” vibe.
The resort is one of the longest-standing resorts on the strip, opening in , and it pains me to say that she’s bound to meet the same fate as her notable neighbors Riviera and Stardust.
See Also:44 Ways to save money in Vegas.
Circus Circus opened solely as a casino in and was constructed for $15 million dollars.
A hotel was later added to attract guests with deeper pockets financed by a loan from the Teamsters pension fund.
Over the decades, Circus Circus has proven to be a Las Vegas staple, adding hotel towers, an amusement park, merging with neighbor Slots-A-Fun, featuring one of the best steakhouses in Las Vegas, and even recently adding a water park.
All good things must end though and our circus-themed property is no exception. Hell, if they can turn Riviera into a parking lot, nothing is sacred.
At the end of the day, it’s difficult to exist in a poor location on the strip without any surrounding attractions.
Calling out the death of Circus Circus isn’t exactly revolutionary. It’s been identified as a potential victim for some time.
She’s old, tired, showing her wear and a narrative-shifting investment has been elusive.
A Motley Fool Article really hit the nail on the head saying that it “Simply isn’t worth fixing up at this point. It would cost billions to entirely revamp them, so they’ll keep them up just long enough to squeeze some money out of them until imploding them for a new resort”.
The numbers don’t lie either. According to MGM Resorts’ annual report, Circus Circus brought in the lowest EBITDA (a proxy for profit) of any of its Las Vegas properties.
In , Circus Circus achieved just under $62 million dollars in EBITDA. To an average guy, that feels pretty good but compare that figure to the $ million Bellagio generated or the $ million that MGM Grand brought in and you realize that the aging property may be nearing the end of its useful life. Circus Circus has been MGM’s profitability laggard for some time with no signs of a turnaround.
Implosion may not be imminent as there are still dollars to milk while MGM Resorts gauges the business climate on the north end of the strip. Rumors of Fontainebleau finding a new, engaged owner paired with the opening of Resorts World may have MGM dreaming of a new resort to capitalize on a revitalized north end of the Las Vegas Strip.
June Update: Circus Circus has continued to make small investments around the property. Most noticeable is the fresh coat of paint on their Strip-facing circus tent. It seems as though Phil Ruffin is content allowing Circus Circus to churn on for the foreseeable future.
February Update:Circus Circus has changed hands, and is now owned by Phil Ruffin who also owns TI. The resort continues to plug along, however, we no longer have a window into the property’s financial performance since MGM Resorts divested it.
Check out our piece saying goodbye to the Las Vegas Club – Another Vegas property meeting the wrecking ball.
Access the MGM Resorts Annual Report referenced in this blog post.
Feature Image Credit: ©dacasdo/thisisnl.nl
Jake Hoffman
I’m a former software salesman turned Vegas aficionado. While the craps table is my preferred habitat, I pull myself away to explore new attractions, shows, restaurants, and outdoor activities around Las Vegas with the intent of sharing my experiences.
Ultimately, I just want to help folks plan a better trip and save a few bucks in the process.
More about me, here.
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