MGM Resorts International and MGM Growth Properties have announced the completion of transactions to acquire Empire City Casino, located in Yonkers, New York.
MGM Resorts acquired the property for approximately $850m, with the company agreeing to pay an additional $50m if Empire City is awarded a license for live table games on or prior to December 31, 2022.
Following the purchase MGP secured the developed real property from MGM for in the region of $625m, and leased it back to an MGM subsidiary that is to undertake daily operations.
Furthermore, MGM has also agreed to give MGP a right of first offer with respect to certain undeveloped land adjacent to the property.
Jim Murren, chairman and CEO of MGM Resorts, said of the deal: “We are pleased to welcome the 1,200 employees at Empire City Casino to the MGM Resorts family.
“Over the past three years, we have established a meaningful presence in the northeast with Borgata in Atlantic City, MGM National Harbor in Maryland, and MGM Springfield in Western Massachusetts.
“With this new addition to the MGM Resorts portfolio, we have now gained a foothold in the high-density New York City region, and we look forward to leveraging the MGM platform to maximise value in this evolving marketplace.”
The 97-acre Empire City, located 15 miles from Manhattan’s Times Square serves around 16 million eligible gaming customers in southern New York, and features over 5,200 slots and electronic table games, multiple dining outlets, and both live and simulcast horse racing.
Timothy Rooney, president and CEO of Empire City Casino, explained: “What’s incredibly exciting is the amount of opportunity MGM Resorts will bring to the employees at Empire City, as well as Westchester County, the city of Yonkers, and the State of New York.
“With destinations throughout the world, from resorts to casinos to entertainment, MGM has a tried-and-true formula for success. They know how to build and grow properties that continually raise the bar in entertainment, travel, and leisure, and we are so thrilled to leave Empire City in MGM’s capable hands.
“What’s more, the potential for growth at Empire City has absolutely no boundaries. MGM will truly provide Empire City employees and the property’s guests with the resources and opportunities to make the casino and track into something we haven’t even yet realised. I cannot wait to see what’s to come!”
“Today, we continue to expand MGP’s best-in-class portfolio with the acquisition of the real estate assets of Empire City, expanding our geographic footprint to the New York City metropolitan area,” added James Stewart, CEO of MGM Growth Properties.
“This financially accretive transaction further diversifies our existing market-leading regional portfolio, and provides us with additional growth opportunities with a right of first offer on any potential capital improvements in the future. This is another excellent example of the power of our partnership with MGM Resorts.”