In an exclusive interview with NEPM's The Fabulous 413, MGM Springfield President Louis Theros said the proposed sale of that casino to a Canadian private equity firm is not a rejection of the Springfield market, but rather a shift in focus from parent company MGM Resorts International.
"It's not necessarily a Springfield issue," Theros said. "On a corporate basis, the company post-COVID has decided to focus more on integrated resorts and our international growth."
The city of Springfield is blocking the sale, and filed suit against MGM last month. Officials argue that MGM hasn't fulfilled its host-community agreement (HCA) for the casino, citing issues like an extended delay on renovations at 101 State Street.
Theros rejected the city's argument, and said MGM has provided millions of dollars in value for Springfield.
"We have contributed over $200 million to the city of Springfield since we've been open, in just gaming tax," he said. "That does not include the 40% of our employees who we've paid hundreds of millions of dollars in wages to, or other vendors in the local area that we have supported."
MGM has moved to bring the city into private arbitration, hoping to force it to accept the sale. The company argues any delay in transferring the casino hurts its bottom line. This week, a Hampden Superior Court judge ruled that arbitration can proceed, denying a preliminary injunction from the city to halt that process.
In response to that ruling, Springfield Mayor Domenic Sarno held that the city will not agree to a sale of the casino until MGM has fulfilled it's part of the HCA.
"Before considering any discussion of a license transfer, MGM must comply with the HCA," Sarno said in a statement. "I remain committed to what is in the best interests of the taxpayers of Springfield."
