Published on: October 16, 2025, 11:23 AM.
Updated on: October 16, 2025, 11:23 AM.
- MGM sells Ohio casino/racetrack to private equity for $546 million
- Sale rumors emerged in Q1 of 2024
MGM Resorts International (NYSE: MGM) has officially announced the sale of the operational rights for MGM Northfield Park, located near Cleveland, to private equity firms led by Clairvest Group for a total of $546 million in cash.
MGM, headquartered in Las Vegas, anticipates net proceeds of $420 million post-tax from this transaction, which is expected to finalize in the first half of the upcoming year. The purchase price corresponds to 6.6 times the venue’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the 12-month period concluding June 30, 2025.
“This outcome is highly favorable for MGM Resorts and illustrates our ability to achieve transaction multiples at substantial premiums compared to our current trading position. This divestment highlights MGM Resorts’ strong financial management, yielding considerable value beyond the initial acquisition cost,” stated MGM CFO Jonathan Halkyard.
With the anticipated $420 million in after-tax proceeds, MGM is realizing a significant profit on Northfield Park. MGM Growth Properties, the real estate investment trust (REIT) that was spun off from MGM Resorts, initially acquired the Ohio casino in 2018. The following year, MGM secured the operating rights for $275 million and rebranded the site under its name.
End of Speculation Surrounding Ohio Casino Sale
The announcement of the Northfield Park sale brings an end to long-standing speculation regarding its future, along with rumors concerning MGM Springfield in Massachusetts that surfaced in the first quarter of 2024, though no agreement was reached until now.
It remains unclear whether MGM Springfield, which opened as Massachusetts’ inaugural traditional casino in August 2018, is still available for sale, but company officials have previously indicated that it has underperformed regarding revenue. In the case of Ohio, the seller has successfully secured a notable agreement.
“The transaction multiple of 6.6x signifies the highest valuation for a single regional operating asset post-COVID. When applied to MGM’s capital cost, the whole company valuation would estimate around 10x,” commented Jefferies analyst David Katz in a report to investors today.
This deal is also seen as a positive indicator, as it suggests sustained interest from buyers in regional gaming assets, despite high interest rates that are previously thought to hinder casino industry mergers and acquisitions.
MGM’s Cost Savings
MGM is not just benefiting financially from the sale of Northfield Park; the operator will also reduce its costs once the deal is finalized.
Under the terms of the sale, MGM will amend its master lease agreement with VICI Properties (NYSE: VICI)—the owner of Northfield Park’s real estate—resulting in a $54 million decrease in MGM’s annual lease payments to the REIT.
VICI acquired the property assets of the Ohio racino when it purchased MGM Growth Properties for $17.2 billion in 2022.