MGM Mirage – the world’s second largest casino operator - has released a statement saying they have agreed to sell the Treasure Island Hotel & Casino on the Las Vegas strip to real estate mogul Phil Ruffin for a total of $775 million. They are hoping this move will boost their liquidity.

In October the MGM reported a 67% drop in quarterly profit. This downward trend is not rare. Casino companies have been hit hard over the past year by slower consumer spending and tight credit markets. MGM's stock, which has plummeted from $86.75 a year ago, rose about 12 percent to $11.98 in morning trading. In Nevada alone gambling revenue drop for 10 consecutive months. The downturn has significantly reduced the stock market value of gambling companies.

"This transaction creates value to our stakeholders through significantly increased liquidity and enhanced financial flexibility," James Murren, chairman and chief executive of MGM Mirage, said in a statement.

Murren recently took over the top job at MGM from former CEO and Chairman Terry Lanni, who retired after the legitimacy of his claim he earned a master's degree in business administration from the University of Southern California was called into question.

The purchase price for the Treasure Island Hotel & Casino will consist of $500 million in cash and $275 million in secured notes. This deal is expected to close by the end of 2009’s second quarter.