MGM seeks $500m damages as Springfield blocks casino sale

MGM wants to offload the operating rights to Clairvest, a Canadian private equity firm.

The hit

Springfield has asked a Hampden County judge to drag MGM’s arbitration fight into the open court, according to Casino.org. MGM wants to sell the operating rights to its underperforming Springfield casino to Clairvest, but the city reportedly won’t approve a buyer until MGM meets staffing & gaming-floor pledges made before the venue opened.

Why it matters

MGM claims Springfield’s refusal to approve the sale has cost it $500m, blocking the transaction for two years, according to the company’s arbitration filing. The city’s leverage comes from the casino host agreement, which gives it a say over who runs the venue. If MGM can’t close with Clairvest, it stays stuck running a casino MGM itself calls a disappointment, still paying $30m a year in rent to VICI Properties.

The record

MGM Springfield opened	August 2018, cost $960m
Buyer lined up	Clairvest, which bought MGM Northfield Park racino rights a year earlier
Estimated value of operating rights	around $500m, according to Casino.org

What happens next

Watch for Judge Jeffrey Trapani’s ruling on whether to open the arbitration to public view, & whether MGM moves to meet Springfield’s staffing & gaming-floor demands to unlock the Clairvest sale.

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

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