The overall complexion of the real money gambling industry in the United States continues to change at a rapid pace with new land-based casinos popping up all over the country along with the wide-scale expansion of real money casino gambling platforms online through the internet. More and more states are passing legislation that is pro-gambling, so this rapid expansion should continue for some time.
Another interesting facet of the US casino industry is acquisitions of existing real money casinos by some of the biggest players in the game today. In a recent post on Connect’s website as a leading source of commercial real estate news, MGM just completed its acquisition of Hard Rocksino Northfield Park in Northfield, Ohio for $1.06 billion. The actual deal according to Connect was between MGM Growth Properties LLC and Milstein Entertainment LLC as the former owner of the Ohio racino property.
When Did The Hard Rock Ohio Racino Get Bought by MGM Resorts?
The terms of the deal include funding with cash on hand and secured loans under MGM’s senior secured credit facility. Speaking on behalf of MGM Growth Properties, James Stewart was quoted as saying, “We are excited about the addition of the market-leading Hard Rock Rocksino to our portfolio. This transaction brings further geographic diversification, and it is expected to generate mid to high single digit percentage accretion to AFFO.”
Hard Rocksino Northfield is located 20 miles south of Cleveland. Along with casino-style gambling, it is also home to one of the nation’s top race tracks for harness racing. Under the guidance of its former owners, it has gained a solid reputation among both the casino and horse racing industry over the past five years. First opened in December of 2013, the racino boasts 2,300 video lottery terminals.
MGM Growth Properties is the real estate arm of MGM Resorts International. Mainly known for some of the most famous and glamorous casino’s resorts in Las Vegas, MGM casinos continue its expansion into other parts of the country.
Will MGM Purchase More Casinos In Ohio?
This latest purchase by MGM Growth Properties marks the first foray into Ohio. Other properties outside of Nevada include MGM Grand Detroit, MGM National Harbor in Maryland just outside Washington DC and Borgata in Atlantic City, New Jersey. Two additional MGM casino resorts are located in Mississippi. Gold Strike is located in the Tunica region and Beau Rivage is one of the biggest casino properties in Biloxi. As part of MGM’s international flair, this global casino power offers MGM Macau and MGM Cotai in China under the company MGM China Holdings Limited.
Even with the expansion into new markets both in the US and around the globe, MGM casinos is still synonymous with Las Vegas as the gambling capital of the world. Its list of properties on the Strip reads like a who’s who of real money casinos. At the top of the list is the Bellagio, Aria and Mandalay Bay. MGM also owns and operates The Mirage, New York-New York, Luxor, Excalibur and Circus Circus. Its signature properties include MGM Grand Casino and Resort, Park MGM and The Signature at MGM Grand.