MGM Acquires Empire City Casino For $850 Million

After the announcement from early January that MGM Resorts International is ready to legally purchase Empire City Casino in Yonkers, New York, it has finally been confirmed that the $850 million purchase agreement is now complete.

The American global hospitality company will inject additional funds in the amount of $50 million if the property receives a gambling license for live table games before 2023.

Chairman and CEO, Jim Murren, said:

“Over the past three years, we have established a meaningful presence in the northeast with Borgata in Atlantic City, MGM National Harbor in Maryland, and MGM Springfield in Western Massachusetts.

With this new addition to the MGM Resorts portfolio, we have now gained a foothold in the high-density New York City region.”

Welcoming 16 Million New Yorkers

Located some 15 miles from Times Square in Manhattan, Empire City will have no trouble serving approximately 16 million inhabitants and gaming customers from New York City.

Among the available categories, visitors will be able to experience racing, dining and full-scale entertainment, mostly thanks to the enormous number of slots and electronic table games, measured in thousands. Live and virtual horseracing is also covered at the venue.

Michael Mathis, MGM Springfield president and CEO commented:

“The Empire City Casino acquisition in Yonkers is designed to tap into the underserved NY market, which will complement the MGM Springfield market. MGM’s unmatched East Coast presence in major markets allows for significant cross marketing and customer loyalty programming that offer us a clear competitive edge. We are well positioned to be a leader in the Northeast’s multi-billion-dollar gaming market.”

James Stewart, CEO of MGM Growth Properties stated that the acquisition represents a fine example of partnerships the company has reached, including the agreements with Major League Baseball and National Hockey League from last year.

Calamos Decreasing Stake

In the meantime, institutional investor, Calamos Wealth Entertainment LLC has lowered its stake in MGM Resorts by 82.5 percent. The company has sold 128,764 shares in Q4 2018, whose worth is now estimated at approximately $662,000.

Apart from Calamos, other formidable investors have also amended their interest regarding MGM, estimating the entire value at $376,785,000. As an example, the bank of New York Mellon Corp enlarged its stake by 143.3 percent in Q2, while Canyon Capital Advisors LLC raised its position by 9 percent during the same quarter.

The group now owns 21,163,868 shares, whose value is assessed to $590,694,000. Finally, Epoch Investment Partners Inc. bought additional 3,213,053 shares and raised its position by extra $89,676,000.

Source:

“MGM Resorts International purchases $850m Empire City Casino”, Nathan Joyes, gamblinginsider.com, January 30, 2019.

“MGM Resorts International (MGM) Stake Lessened by Calamos Wealth Management LLC”, fairfieldcurrent.com, January 31, 2019.