MGM Resorts International is reportedly considering the sale of its casino operations at Ohio’s Northfield Park and in Springfield, Massachusetts.
The company is said to be working with financial advisers on this matter. However, the discussions are in the early stages and may not necessarily lead to any concrete actions, Bloomberg reported, citing unnamed sources.
MGM’s management has purportedly been dissatisfied with the company’s share price performance. Despite experiencing growth in sales and profits, the stock has seen a modest increase of less than 5 percent over the past two years. As a result, the largest operator of casinos on the Las Vegas Strip has been exploring opportunities to expand its presence in online gambling markets in the United States and abroad.
Situated approximately 32 kilometers southeast of Cleveland, MGM Northfield Park is a horse track that also features a casino. MGM assumed management of the former Hard Rock property in 2019.
The company secured the license to operate in Springfield following Massachusetts’ authorization of casino gambling. However, the casino, which commenced operations in 2018, has reportedly fallen short of expectations.
“Our original valuation of this market simply was off – full stop,” remarked MGM’s chief executive officer, Bill Hornbuckle, during discussions with reporters after meeting with local officials last year. The property recorded gambling revenue of US$278 million in 2023.
Notably, the real estate for both casinos is owned by Vici Properties, a New York-based real estate investment trust that acquired MGM Growth Properties, MGM’s REIT affiliate, nearly two years ago.
Original article: https://www.yogonet.com/international/noticias/2024/03/21/71367-mgm-reportedly-mulls-sale-of-ohio-and-massachusetts-casinos-amid-share-price-woes
