MGM Resorts selling out-of-state casino for $546M

Las Vegas-based MGM Resorts International announced Thursday it has agreed to sell the operations of MGM Northfield Park, a racino near Cleveland, to private equity funds managed by Clairvest Group Inc. for $546 million in cash.

The deal, expected to close in the first half of 2026 pending regulatory approval, values the property at roughly 6.6 times adjusted EBITDA for the 12 months that ended June 30, according to MGM. The company expects about $420 million in net proceeds after taxes and transaction costs.

MGM Northfield Park, which reported $137 million in adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) over the past year, will be removed from the company’s master lease with real estate owner Vici Properties, reducing MGM’s annual rent payments by about $54 million once the sale closes.

“This is a great property with great opportunity ahead,” MGM Resorts President and CEO Bill Hornbuckle said in a statement. “To achieve (its vision of being the world’s premier gaming entertainment company), we’re focused on growing our digital business, developing our international expansion opportunities and continuing to invest in our leading integrated resorts domestically.”

The sale comes just two days after MGM announced its decision to withdraw its application for a New York City casino license, a project estimated to cost about $2.3 billion, according to analysts.

Gaming industry analysts at Jefferies LLC noted that the 6.6x sale multiple represents one of the highest transaction valuations for a single regional casino operation since the pandemic, underscoring the strong pricing MGM secured.

“When applying MGM’s cost of capital to the rent ascribed with this transaction, the wholeco valuation would approximate 10x,” the note said.

MGM Growth Properties LLC acquired the Northfield operations in 2018 from Hard Rock for $275 million. The next year, MGM Resorts took over operations from MGP for $275 million and rebranded the property.

The 74,000-square-foot venue features nearly 1,600 video lottery terminals, a half-mile harness racetrack, 10 dining outlets and a 1,820-seat entertainment venue.

“This is an excellent result for MGM Resorts and demonstrates consistency in driving transaction multiples at meaningful premiums over where MGM Resorts currently trades,” said Jonathan Halkyard, chief financial officer and treasurer of MGM Resorts. “The divestiture underscores MGM Resorts’ exceptional financial stewardship, delivering substantial value well beyond the original acquisition price.”

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.