MGM Resorts International is exploring the sale of its casino operations at Ohio’s Northfield Park and in Springfield, Massachusetts, according to sources with knowledge of the matter.
The company is working with financial advisers, but the discussions are preliminary and may not result in any action, said the sources, who asked to not be identified as the information is confidential. A spokesperson for MGM declined to comment on the discussions.
MGM’s management has been frustrated with the company’s share price. The stock has climbed less than 5 per cent over the past two years despite growth in sales and profit. The largest operator of casinos on the Las Vegas Strip has been looking to build out its exposure to online gambling in the United States and overseas.
MGM Northfield Park, a horse track that also has a casino, is located about 32 kilometres southeast of Cleveland. MGM took over management of the former Hard Rock property in 2019.
MGM won the license to operate in Springfield after Massachusetts authorised casino gambling. The casino, which opened in 2018, has been something of a disappointment.
“Our original valuation of this market simply was off – full stop,” MGM chief executive officer Bill Hornbuckle told reporters after meeting with local officials last year. The property generated US$278 million in gambling revenue in 2023.
The real estate at both casinos is owned by Vici Properties, a New York-based real estate investment trust that acquired MGM Growth Properties, MGM’s REIT affiliate, almost two years ago.
A Vici representative declined to comment on the sale talks. BLOOMBERG
