MGM Resorts International is working with financial advisors and considering selling its casino operations at Northfield Park in Ohio and Springfield, Mass., according to insiders, who wished to remain anonymous, according to Bloomberg News.
They said company management has been concerned that its share price has risen less than 5 percent over the past two years, despite increases in sales and profit.
MGM paid just over $1 billion for the MGM Northfield Park racino, a former Hard Rock property located 20 miles southeast of Cleveland, in 2019. According to Casino.org, “As measured by revenue per square foot, MGM Northfield Park was merely the ninth-best casino in Ohio for much of 2023.” The property has 900 employees and has offered greyhound, car, and then harness racing since the 1930s.
The Springfield venue opened in 2018, seven years after Massachusetts legalized casino gambling. The facility posted $278 million in gambling revenue in 2023, a disappointment according to industry watchers. MGM Chief Executive Officer Bill Hornbuckle said, “Our original valuation of this market simply was off, full stop,” he told reporters after meeting with local officials last year.
New York-based real estate investment trust Vici Properties Inc. owns both casinos.
