USA Top 10 best casinos in Virginia

USA Top 10 crypto casinos in Virginia

MGM Resorts Considers Selling Casino Assets

Explore MGM Resorts International's deliberations on potentially selling off select casino assets amidst shareholder concerns and stagnant share prices. Learn about the properties under consideration, including Northfield Park in Ohio and MGM Springfield in Massachusetts, and the implications for the gaming industry.
facebook twitter twitter
MGM National Harbor

Branimir Ivanov | Senior News Contributor

Updated: Mar 26, 2024

MGM Resorts Considers Selling Casino Assets

MGM Resorts International, a renowned player in the global hospitality and gaming sector, finds itself at a crossroads as it weighs the possibility of divesting certain casino assets. Recent insights from Bloomberg News suggest that the company is actively exploring the sale of its casino operations situated at Ohio's Northfield Park and in Springfield, Massachusetts. However, it's essential to approach these discussions with caution, as they are currently characterized as “preliminary.”

While the deliberations indicate a strategic reassessment by MGM, it's crucial to note that no definitive decisions have been made yet, with outcomes remaining uncertain. This cautious approach aligns with the complex nature of strategic decision-making in the dynamic gaming industry, where market conditions and shareholder interests must be carefully evaluated before any concrete actions are taken.

 

Key Points

  1. MGM Resorts International is considering selling off certain casino assets, including operations at Northfield Park in Ohio and MGM Springfield in Massachusetts, in response to shareholder dissatisfaction and stagnant share prices.
  2. Discussions surrounding the potential sales are described as preliminary, with the outcome uncertain at this stage.
  3. Despite reporting increased sales and profits, MGM's stock has seen limited growth, prompting management to explore strategic alternatives such as asset divestment to potentially unlock shareholder value.

 

The company, which boasts 31 hotel and gaming destinations worldwide, including its prominent online platform, BetMGM Casino, is facing dissatisfaction from its management regarding its share price. Earlier in the year, analysts had suggested that MGM Resorts (NYSE: MGM) might contemplate selling some of its casino assets in an effort to boost its share price.

MGM's Chief Executive Officer, Bill Hornbuckle, expressed disappointment with the company's share price during discussions with Bloomberg News reporters. He acknowledged that the initial valuation of the market had been off and hinted at consultations with financial advisors to address this concern.

Despite an increase in sales and profits, MGM Resorts' stock has seen relatively modest growth of less than 5% over the past two years. In the final quarter of 2023, the company reported net revenue of $4.4 billion, marking a significant 22% annual increase.

Notably, the real estate at both MGM Springfield and MGM Northfield Park is owned by Vici Properties, a New York-based investment firm. Vici Properties acquired MGM's REIT affiliate, MGM Growth Properties, less than two years ago. MGM Northfield Park, situated approximately 20 miles southeast of Cleveland, features live harness racing, simulcasting, and a casino. The property, managed by MGM since 2019 after its acquisition from Hard Rock, ranks among the top five Ohio operators based on monthly performance reports.

In Massachusetts, MGM Springfield, operating since August 2018, holds a license from the Massachusetts Gaming Commission (MGC) to operate a casino in the Metro Center area. While the casino launched online sports betting in January 2023, it has not met its owner's expectations in terms of betting volume. \

 

MGM Resorts International's contemplation of selling select casino assets reflects our commitment to exploring strategic initiatives aimed at addressing shareholder concerns and optimizing our portfolio for sustained growth.

 

The Conclusions

According to the MGC's February 2024 revenue report, MGM Springfield lagged behind its retail competitors in total bets, with only $1.6 million reported compared to over $5 million each for Encore Boston Harbor and Plainridge Park Casino. However, MGM Springfield did secure the second-highest revenue among its peers.

The potential sale of these casino assets reflects MGM Resorts' strategic reassessment amid challenges in meeting shareholder expectations and optimizing its portfolio for sustained growth. As discussions unfold, stakeholders will be closely monitoring developments in the dynamic landscape of the gaming industry.

The Hottest USA CAsinos 2024

American Eagle
All-American Casino
SlotsandCasino Casino logo

SlotsandCasino Casino Review

USARated 100.00/100%

welcome bonus

300%/$1,500 + 100 Free Spins

30x wagering (Deposit & Bonus)

Play
Number of games
11+
Payment methods
6
Game providers
9
Min deposit
25
US Players
Accepted
Popularity Icon
Hot New US Casino
Cafe Casino logo

Cafe Casino Review

USARated 98.12/100%

welcome bonus

250%/$1,500

40x wagering (Deposit Only)

Play
Number of games
150+
Payment methods
8
Game providers
3
Min deposit
20
US Players
Accepted
bonus (2)
Big Bonus
DuckyLuck Casino logo

DuckyLuck Casino Review

USARated 99.97/100%

welcome bonus

500%/$2,500+ 150 Free Spins

30x wagering (Deposit & Bonus)

Play
Number of games
11+
Payment methods
6
Game providers
9
Min deposit
25
US Players
Accepted
Popularity Icon
Trending in the USA
Bovada Casino logo

Bovada Casino Review

USARated 98.20/100%

welcome bonus

100%/$1,000

25x wagering (Deposit Only)

Play
Number of games
10+
Payment methods
4
Game providers
3
Min deposit
20
US Players
Accepted
Popularity Icon
Trending in the USA
Ignition Casino logo

Ignition Casino Review

USARated 98.11/100%

welcome bonus

300%/$3,000

25x wagering (Deposit Only)

Play
Number of games
10+
Payment methods
5
Game providers
4
Min deposit
20
US Players
Accepted
gold medal
#1 Crypto 2024
BC.Game Casino logo

BC.Game Casino Review

USARated 99.46/100%

welcome bonus

360%/$220,000

60x wagering (Deposit & Bonus)

Play
Number of games
610+
Payment methods
5
Game providers
64
Min deposit
0.01
US Players
Accepted
Popularity Icon
Hot New US Casino
JuiceBet Casino logo

JuiceBet Casino Review

USARated 99.12/100%

welcome bonus

300% on Top

35x wagering (Deposit & Bonus)

Play
Number of games
90+
Payment methods
5
Game providers
2
Min deposit
30
US Players
Accepted
Popularity Icon
Hot New US Casino
WinPort Casino logo

WinPort Casino Review

USARated 97.99/100%

welcome bonus

250%/$7,000

35x wagering (Deposit & Bonus)

Play
Number of games
68+
Payment methods
5
Game providers
5
Min deposit
10
US Players
Accepted
US Players Accepted
Slots LV Casino logo

Slots LV Casino Review

USARated 98.13/100%

welcome bonus

200%/$3,000 + 30 Free Spins

35x wagering (Deposit & Bonus)

Play
Number of games
150+
Payment methods
4
Game providers
73
Min deposit
20
US Players
Accepted
USA Icon
U.S. Choice Champion
JazzSports Casino logo

JazzSports Casino Review

USARated 97.96/100%

welcome bonus

200%/$2,000

40x wagering (Deposit & Bonus)

Play
Number of games
83+
Payment methods
7
Game providers
36
Min deposit
10
US Players
Accepted
10/ 10 (100%)

Related News

BGaming

BGaming Expands its Presence in Argentina

Boogie Boom

Boogie Boom Promises A Retro Disco Slot Experience

Tomb of Gold

Unveiling Ancient Mysteries: Play’n GO Introduces Tomb of Gold

hide-html