MGM Resorts to Buy New York Casino for About $605 Million

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MGM Resorts

MGM -Zero.48%

Worldwide is shopping for a harness-racing monitor and on line casino exterior New York Metropolis for about $605 million, serving to the gambling-venue proprietor’s newest push to broaden its presence on the East Coast.

MGM will purchase the Empire Metropolis On line casino in Yonkers, N.Y., from the Rooney household, which has owned the operation at Yonkers Raceway for greater than 4 many years. The Wall Road Journal reported in November that the on line casino was exploring strategic alternate options, together with a potential sale or partnership. MGM will even assume about $245 million of debt within the deal.

Empire Metropolis is about 15 miles from Occasions Sq.. The 97-acre web site gives slots and digital desk video games, eating and leisure and stay and simulcast horse racing.

It was based in 1899 because the Empire Metropolis Trotting Membership. In 1972, the Rooney household purchased Empire Metropolis for $52 million. Tim Rooney, whose household owns the Nationwide Soccer League’s Pittsburgh Steelers, is the chief govt of Empire Metropolis.

MGM has additionally agreed to pay an extra $50 million if the on line casino is awarded a license for stay desk video games, together with poker and blackjack, earlier than 2023.

The deal comes as on line casino operators have been on the hunt for offers in current months and follows a Supreme Courtroom ruling earlier this month that lifted limits on the U.S. sports-betting market.

The excessive courtroom invalidated federal prohibitions from 1992 that had primarily restricted the authorized playing market to Nevada. Playing operators, sports activities leagues and state governments are actually vying for his or her share of the potential income from an growth of sports activities betting, as state lawmakers focus on tax charges and probably charges to be charged by sports activities leagues, such because the Nationwide Basketball Affiliation and Main League Baseball.

The deal is MGM’s newest transfer to seize a bit of the New York Metropolis metro space’s playing market. The corporate largely operates casinos in Las Vegas, but in addition has operations in Atlantic Metropolis, N.J., Detroit and Macau.

Final fall, MGM stated that it needed to open a $675 million on line casino on the waterfront in Bridgeport, Conn., which is reachable by commuter rail from New York Metropolis. State legislators have proposed an open competitors to construct a brand new on line casino in Connecticut, a transfer that might pressure its relationship with Native American tribes that handle the opposite casinos within the state.

Within the yr ended March 31, Empire Metropolis reported about $230 million in income and about $70 million in adjusted earnings earlier than curiosity, taxes, depreciation, and amortization.

MGM Resorts stated it plans to promote Empire Metropolis to the corporate’s real-estate funding belief

MGM Progress Properties

LLC. MGM Resorts will then lease the property again from MGM Progress Properties and function it. The transactions are anticipated to shut within the first quarter of 2019.

MGM largely operates casinos in Las Vegas, but in addition has operations in Atlantic Metropolis, N.J., Detroit and Macau.

Write to Austen Hufford at austen.hufford@wsj.com



Supply hyperlink – https://www.wsj.com/articles/mgm-resorts-to-buy-new-york-casino-for-about-605-million-1527604347?mod=pls_whats_news_us_business_f

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