Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioMGM Resorts International announced that it has reached an agreement to sell the operations of MGM Northfield Park in Ohio for $546 million in cash.
Bill Hornbuckle, CEO & President, MGM Resorts International, said the company was selling the property to focus on its digital sector. BetMGM raised its full-year 2025 guidance after posting a 23% year-over-year surge in Q3 revenue.
Hornbuckle said, “At MGM Resorts, our vision is to be the world’s premier gaming entertainment company. To achieve this vision, we’re focused on growing our digital business, developing our international expansion opportunities, and continuing to invest in our leading integrated resorts domestically.”
The company purchased the property, through MGM Growth Properties, from Hard Rock for $275 million plus purchase price adjustments in 2019.
For the 12 months ended June 30, MGM Northfield Park reported Adjusted EBITDAR of approximately $137 million. At the closing of the transaction, MGM Resorts’ master lease agreement with VICI, which currently includes MGM Northfield Park, will be amended to reduce annual rent by $54 million.
MGM Posts Sizable Profit On Sale
Private equity funds managed by Clairvest Group Inc. have agreed to pay the $546 million to give MGM a sizable profit on the sale. The company expects estimated net cash proceeds after taxes and transaction costs to be approximately $420 million. The transaction is expected to close in the first half of 2026, subject to regulatory approvals.
In a press release, Jonathan Halkyard, CFO & Treasurer, MGM Resorts International said, “This is an excellent result for MGM Resorts and demonstrates consistency in driving transaction multiples at meaningful premiums over where MGM Resorts currently trades. The divestiture underscores MGM Resorts’ exceptional financial stewardship, delivering substantial value well beyond the original acquisition price.”
“We appreciate VICI, as the real estate owner of MGM Northfield Park, working constructively with Clairvest to facilitate a new lease agreement.”
Clairvest is one of the most active private equity investors in the gaming and casino sector. It has backed numerous casino, racetrack, and online gaming ventures in Canada, the U.S., and Latin America.
Michael Wagman, President and Managing Director of Clairvest, said, “We are excited by the growth potential at Northfield Park and remain committed to offering a premier entertainment experience for the local community.
“As we look ahead, we intend to build on the strong foundation laid by MGM and guide the continued expansion of the racino in the coming years. We are looking forward to building a collaborative relationship with our new industry partner, VICI.”
MGM’s Withdrawal From New York Casino Race
MGM also announced the surprise decision to pull its proposal for a New York casino license. The company said, “Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment.”
The bid proposed to develop a new casino in Yonkers, and Mayor Mike Spanno said the withdrawal was “nothing short of a betrayal to the people of Yonkers and Westchester County.”
The proposed site was close to other remaining bids, including Bally’s Bronx proposal and two projects in Queens. MGM said, “The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project.”
Mayor Spanno believed more sinister motives were at play, stating that “it’s no big secret” that if Bally’s wins, it will pay $115 million to President Donald Trump as part of the purchase deal for the casino site. The Bally’s development is on the former Trump Golf Links site.
Since Trump took office, the Federal Trade Commission (FTC) dropped an investigation into MGM’s data security practices following a cyberattack in September 2023.
MGM’s withdrawal now leaves Bally’s bid uncontested, as it is one of only three remaining proposals in the running for three New York casino licenses.
Despite BetMGM’s good performance this quarter, the news of the New York casino withdrawal and the sale of the Northfield Casino have led to MGM shares dropping in price. The company’s stock is now at under $32 after reaching almost $40 at the end of August.
