March 22, 2024

Stock Woes Prompt MGM Resorts to Mull Ohio and Massachusetts Property Sales

Aaron Mitchell
Written byAaron MitchellWriter
Researched byJavier FernandezResearcher

Key Takeaways:

Stock Woes Prompt MGM Resorts to Mull Ohio and Massachusetts Property Sales
  • MGM Resorts International is contemplating the sale of its casino operations in Ohio's Northfield Park and Springfield, Massachusetts.
  • This consideration is partly due to the company's dissatisfaction with its stock performance in recent years.
  • Official statements from MGM Resorts regarding these discussions have not been released, and the future of these properties remains uncertain.

MGM Resorts International finds itself at a crossroads, reportedly pondering the sale of its casino ventures in Ohio and Massachusetts amid a backdrop of stock market challenges. Insights from sources close to Bloomberg hint at early-stage discussions, though the path forward is yet to be defined, casting a shadow of uncertainty over the fate of these establishments.

So far, MGM Resorts has maintained silence, offering no official commentary on these speculative deliberations. This move is seen as a strategic contemplation, driven by a desire to recalibrate its portfolio in response to less-than-stellar stock performance. Despite boasting robust sales and profit figures over the past two years, MGM's shares have languished, prompting a reassessment of its asset base.

MGM Resorts, a titan on the Las Vegas Strip, harbors ambitions that stretch far beyond its Nevada stronghold. The company has been vocal about its aspirations to deepen its footprint in the burgeoning realms of domestic and international online gambling. Bill Hornbuckle, MGM Resorts International's CEO, recently shared insights at the JP Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum, outlining potential expansion into the UAE and Thailand. Moreover, MGM is vying for a coveted casino license in New York, with plans to break ground on a new casino by mid-2026, contingent on a successful bid.

MGM’s Ohio and Massachusetts Casino Ventures Face Scrutiny Amid Challenges

MGM's journey into Ohio and Massachusetts has been anything but smooth. In Ohio, MGM Northfield Park serves a dual role as a horse track and casino, a property it acquired from Hard Rock in 2019. Meanwhile, the Springfield casino in Massachusetts, which opened in 2018 following the state's green light for casino gambling, has struggled to live up to expectations. During a candid discussion with local officials last year, CEO Bill Hornbuckle admitted to miscalculating the market's potential, with the Springfield establishment generating $278 million in gambling revenue in 2023, falling short of projections.

Notably, the real estate underpinning these casino properties is owned by Vici Properties Inc., a New York-based real estate investment trust, which absorbed MGM's REIT affiliate, MGM Growth Properties, almost two years ago. Vici, however, has remained tight-lipped regarding any discussions about the potential sale of these assets.

As MGM Resorts International navigates the possibility of divesting its Ohio and Massachusetts casino holdings, the industry watches with bated breath. Analysts are speculating on prospective buyers and pondering the broader implications of such a strategic shift for the gambling landscape. With official confirmations still pending, the future of MGM's ventures in these states hangs in the balance, underscoring the unpredictable nature of the casino business.

About the author
Aaron Mitchell
Aaron Mitchell

Aaron "SlotScribe" Mitchell, Ireland's very own slot enthusiast, effortlessly merges the classic tales of the Emerald Isle with the digital spins of today. As a prolific writer for SlotsRank, he unveils the magic behind the reels, captivating readers across the globe.

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