Possible Sale of Casinos in MA and OH
MGM Resorts could be looking to offload two of the company’s casinos in an apparent effort to boost the company’s stock price. A possible deal could see the company part with MGM Northfield Park, a horse track and casino near Cleveland, Ohio, and MGM Springfield in Massachusetts.
MGM manages casino operations at each as it does at many company properties around the country. The real estate at both casinos is owned by Vici Properties, a New York real estate investment (REIT) firm. The company acquired MGM Growth Properties, MGM’s REIT affiliate, two years ago and owns real estate for other MGM casino operations as well.
“The company is working with financial advisers, but the discussions are preliminary and may not result in any action,” Bloomberg reported. “MGM’s management has been frustrated with the company’s share price. The stock has climbed less than 5% 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 US and overseas.”
MGM officials haven’t commented on the reports of a possible sale of the two casinos. However, CEO Bill Hornbuckle has expressed disappointment with the performance of the Massachusetts casino since it opened in 2018.
“Our original valuation of this market simply was off — full stop,” he said last year.
