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MGM Wants to Sell Springfield Casino, But City Just Says ‘No’

Category: Crypto Casino Alpha Published: Updated: Desk: WinBar VIP Editorial ✓ Verified Desk Analyst Source: Casino.org
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MGM Wants to Sell Springfield Casino, But City Just Says ‘No’

Story summary

MGM Resorts International’s (NYSE: MGM) legal rift with the city of Springfield, Mass. is raging on with the city asking a Hampden County Superior Court judge to move the parties’ arbitration proceedings into the open. The gaming company is at odds with Springfield because the former wants to sell i

📌 Key Highlights & Takeaways

  • MGM Resorts International’s (NYSE: MGM) legal rift with the city of Springfield, Mass.
  • is raging on with the city asking a Hampden County Superior Court judge to move the parties’ arbitration proceedings into the open.
  • The gaming company is at odds with Springfield because the former wants to sell i

MGM Resorts International’s (NYSE: MGM) legal rift with the city of Springfield, Mass. is raging on with the city asking a Hampden County Superior Court judge to move the parties’ arbitration proceedings into the open.

The gaming company is at odds with Springfield because the former wants to sell its operating rights to the regional casino while the city believes MGM hasn’t lived up to promises it made prior to the opening of the venue in August 2018. Per the casino host agreement , the city has some say in who runs the gaming venue.

From MGM’s perspective, Springfield leaders are standing in the way of the company’s efforts to sell MGM Springfield, claiming in arbitration proceedings that the city is on the hook for $500 million in financial damages because it has blocked the transaction for two years.

On Wednesday, counsel for the city asked Judge Jeffrey Trapani to move what’s currently a behind-the-scenes arbitration into court so the proceedings are in plain sight for Springfield residents.

The $960 million regional casino has been a disappointment since opening eight years ago with MGM acknowledging as much. That’s likely why the operator wants to sell the venue.

Accentuating its legal tussle with Springfield, MGM has a buyer lined up in the form of Canadian private equity Clairvest. A year ago, Clairvest acquired the operating rights to the MGM Northfield Park racino near Cleveland, so those two parties have a clear working relationship.

However, Springfield stands in the way, noting that MGM hasn’t lived up to staffing pledges of at least 3,000 and promises to maintain 2,800 to 3,000 gaming machines and 75 to 100 table games.

Local media reports indicate that the city won’t green light a sale of MGM Springfield until those issues are addressed, but MGM’s willingness to boost headcount and increase gaming availability at the venue isn’t clear at a time when it wants to wash its hands of the venue.

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Source: Casino.org.

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