MGM sells Springfield casino to MGM Growth Properties

MGM Resorts International is selling the real estate assets of MGM Springfield in Massachusetts to the company’s real estate investment trust in a $400m transaction.

The Las Vegas-based operator will continue to run the casino resort under a lease agreement with MGM Growth Properties.

MGM Resorts held a 42 percent ownership stake in MGM Growth as of 31 March. MGM Springfield will be added to the existing Master Lease between MGM Resorts and MGM Growth Properties, which already includes a dozen MGM properties in Las Vegas, MGM Northfield Park in Northfield, Ohio and Empire Resort Casino in Yonkers, New York and a retail/ entertainment complex called The Park in Las Vegas.

MGM Resorts’ CEO and president Bill Hornbuckle said the sale “serves the best interests of the shareholders of both companies and further advances our asset-light commitment”.

“MGM Springfield has exhibited strong financial performance as it emerges from the pandemic, and the property delivered record [earnings] in the first quarter of 2021,” he added.

In a note to investors, J.P. Morgan gaming analyst Joe Greff wrote the translation “improves [MGM’s] already strong liquidity position, enhancing its ability to invest in its land-based casinos or BetMGM and return capital to shareholders”.