MGM Resorts Looking to Sell Assets

MGM Resorts International is one of the biggest names in the gaming industry, but things haven’t been going extremely well for that company. While this company is always going to be a big name in Las Vegas, it could be looking to get out of some other states. 

Bloomberg News is reporting that MGM Resorts is looking to seel two specific assets, and those properties are nowhere near to Nevada. One of the properties is in Northfield Park, Ohio, and the other is in Springfield, Massachusetts. 

Even though the reasons for wanting to sell are sound, this is still some major news in the gambling and casino industries. It could also speak to the overall trend that some commercial casinos are struggling to keep pace with online options. 

These discussions are still in the very early stages as well, and there is no guarantee that MGM Resorts will go through with the sale. Based on the popularity and success of MGM, there would be some other companies that are very interested in making some offers. 

MGM Resorts International has become a leader in online casino gambling as well as the online sports betting industry. This company will continue to look for growth opportunities in those industries, but it can’t keep losing money with commercial properties. 

This company currently has more than 30 casinos and hotels around the world, and at one point, more growth was to be expected. 

Same Owner Involved

There is a reason that these two properties have been identified by MGM Resorts as the same owner is currently in charge in both states. Vici Properties currently owns both of the properties, and that could make the sale a much smoother process, if the company goes that route. 

MGM Northfield Park is a unique property for this company as live harness racing takes place at the location. The casino is a big draw throughout the state of Ohio, but it might be more attractive since live racing takes place at this location. 

This casino is one of the top revenue generators in the state of Ohio, but it’s still not performing up to the MGM Resorts standards. MGM Resorts has been offering casino gambling in Massachusetts since 2018, and that is another property that has been successful. 

One reason that BetMGM could be looking to move off of these properties is that other opportunities are coming in 2024 and beyond. 

MGM Looking After Investors

MGM Resorts International continues to make significant jumps in revenue, and that is a trend seen by most companies in the gaming industry. While that might be the case, the top executives at MGM Resorts are looking to increase the share price with a new sale. 

This company posted a revenue of $4.4 billion in the final quarter of 20243, but the share price has barely jumped at all. Selling some assets should allow the share price to grow, but it could end up creating more competition in this highly competitive environment. 

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