Two MGM Resorts Properties May Be Up For SaleCompany Looking For Higher Share Price |
|
One of the country’s largest gaming operators may be putting two more casinos up for sale. MGM Resorts may be looking to sell properties in Ohio and Massachetts in an effort to increase the company’s stock price, according to recent reports.
The company is considering letting go of MGM Northfield Park, a horse track and casino near Cleveland, Ohio, and MGM Springfield in Massachusetts, according to Bloomberg.
“The company is working with financial advisers, but the discussions are preliminary and may not result in any action,” the news service reported. “MGM’s management has been frustrated with the company’s share price. The stock has climbed less than 5% over the past two years despite growth in sales and profit. The largest operator of casinos on the Las Vegas Strip has been looking to build out its exposure to online gambling in the US and overseas.”
Massachusetts Casino Disappoints Financially
MGM doesn’t own the real estate of either property, but manages on-site casino operations. The company has moved toward this business model over the last few years, including with their casinos on the Las Vegas Strip. Vici Properties, a New York real estate investment (REIT) firm, owns the real estate at both properties being considered for the sale.
There hasn’t been an official comment from MGM so far, but Springfield Mayor Domenic Sarno said this week that he was meeting with MGM CEO Bill Hornbuckle to discuss the issue.
“I have spoken to MGM Resorts International CEO and President Bill Hornbuckle and he has agreed to meet with me in my office in the very near future to discuss the status of MGM Springfield,” Sarno said. “I assure you that my number one priority is protecting the interest of the city of Springfield.”
Hornbuckle has expressed disappointment with the results from the Massachusetts casino in the past. The property was unveiled in 2018 and original company estimates had the casino producing revenue of $34 million per month, but that has actually been much lower. The highest revenue month for the property was $26 million, the first month the casino opened.
“Our original valuation of this market simply was off — full stop,” Hornbuckle said last year.
It has been a somewhat turbulent year for MGM. The company experienced a hacking incident last year that left many of the company’s computer systems out of operation. A former executive at MGM Grand also recently pled guilty to money laundering charges.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
