The city of Springfield is taking legal action against MGM Resorts International due to alleged breaches of commitments related to its Massachusetts casino, escalating a two-year dispute involving MGM’s proposed sale of the casino’s gaming operations.
The lawsuit filed on Thursday claims that MGM Springfield is operating with significantly fewer gaming positions and employees than agreed upon in the host community agreement. Currently, the casino has 1,600 slot and video gaming machines and 50 table games, while the commitments were for over 2,800 machines and at least 75 table games.
MGM employs around 1,500 people in Springfield, including roughly 1,000 full-time workers, which falls short of the initial commitments for 3,000 employees, including 2,200 full-time positions. Concerns have also been raised regarding the redevelopment of a nearby building.
MGM Springfield opened in 2018 as Massachusetts’ first full-scale resort-style casino. Mayor Domenic Sarno and the company’s top local executive marked the occasion with a procession along Main Street in a vintage Rolls-Royce.
The relationship between the city and MGM has soured over time, with negotiations ongoing for two years concerning issues related to the host community agreement. MGM now asserts that the dispute centers around its attempts to sell the casino operations.
While the company has sold the underlying real estate, the host agreement grants Springfield approval authority over any transfer of the casino business. In early 2024, MGM informed Sarno about a potential buyer and sought city approval to proceed with the transaction, although the buyer’s identity remains undisclosed.
MGM accuses Sarno and other Springfield officials of acting in bad faith and believes the city is purposefully delaying the proposed sale instead of resolving the outstanding issues. Both parties had entered arbitration to resolve their disagreements, with the city facing a deadline to respond by Friday.
Around the same time, MGM put another casino, Northfield Park Racino in Ohio, on the market. The property was later sold to Clairvest Group, a Toronto-based private equity firm with interests in several gambling businesses.
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