MGM Resorts International is reportedly considering the sale of its casino operations in both Ohio and Massachusetts. [Image: Shutterstock.com]

A sale in the works?

MGM Resorts International is reportedly exploring the sale of its casino operations in Massachusetts and Ohio. The two casinos under consideration are MGM Northfield Park in Ohio and MGM Springfield in Massachusetts.

As reported by Bloomberg, discussions remain in the preliminary stage and may not result in anything further.

only generated $278m in gambling revenue in 2023

The Las Vegas-based company took over the management of MGM Northfield Park in 2019. MGM Springfield opened in 2018, but has failed to live up to expectations. Costing the operator $960m to build, it only generated $278m in gambling revenue in 2023.

Speaking on the matter, MGM Chief Executive Officer Bill Hornbuckle, said: “Our original valuation of this market simply was off — full stop.”

$17.2bn spinoff sale

In 2021, MGM sold its real estate assets to MGM Growth Properties (MGP) for $400m.

During that same year, VICI Properties bought MGP for $17.2bn. As a result of that purchase, VICI gained control of MGM Northfield Park and MGM Springfield, among other MGM venues.

As part of the MGP deal, MGM entered into a triple-net master lease agreement with VICI for a term of 25 years. The casino operator will pay $860m per year in rent to continue to occupy its 15 properties. This rate will grow by 2% annually for the first ten years of the agreement.

At the time, VICI CEO Edward Pitoniak described the 15 properties as “magnificent assets.” Meanwhile, Bill Hornbuckle, CEO and president of MGM Resorts, explained his company’s reasons for selling, saying the transaction would increase MGM’s “financial flexibility” and describing the sale as part of the company’s “journey to become asset light.”

2023 cyberattack

The potential sale of MGM’s two operations follows after a tough 2023 when it was the target of a cyberattack.

In September, hackers disrupted the operator’s computer systems and Las Vegas properties. Consequently, the guest experience was significantly impacted for weeks due to issues such as long lines for manually checking into hotels, slot machines not working, and unavailable non-cash payment systems.

Luckily for MGM Resorts, it eventually resolved the matter without resorting to paying a ransom to the attackers.