Trending
MGM Resorts just sold its Northfield Park racino near Cleveland to Toronto’s Clairvest Group for $546 million cash. The Vegas giant walks away with $420 million after taxes and fees - not bad for a property they bought for $275 million in 2019.
But what actually makes this deal interesting is that MGM announced it just one day after backing out of the New York casino race - but that’s no coincidence. The company’s basically telling everyone they’re done chasing regional casinos when their online betting platform, BetMGM, is printing money.
The numbers prove to us everything - BetMGM turned profitable in Q1 2025 with $22 million in EBITDA, which is a $154 million improvement from last year. Revenue surpassed $657 million, up 34% - yet CEO Bill Hornbuckle thinks BetMGM could hit $2.5 billion soon. So, why mess around with solid properties in Ohio when your online business is exploding like that?
Northfield Park itself is no slouch, though. The 74,000-square-foot facility packs 1,600 video lottery terminals, runs 200+ harness races yearly on its half-mile track, and has many restaurants plus a 1,820-seat entertainment venue. Since opening in 2013, it’s been Ohio’s top gaming revenue generator - and in last year alone, the property pulled in $137 million in adjusted earnings.
Clairvest paid roughly 6.6 times annual earnings, which is pretty standard for casino deals. But here’s where it gets interesting for Clairvest - this is their seventeenth gaming investment in 25 years. So, these guys know what they’re doing - their previous eight casino exits averaged 5.2 times their original investment. They already own Delaware Park Casino, just opened The Nash Casino in New Hampshire, and control Illinois’s biggest video gaming terminal operator.
While Ohio sorts out this deal, Texas gamblers are finding their own solutions. The best online casino texas sites bring the full Vegas experience straight to your phone - real money games, huge bonuses, and instant payouts. Licensed by legitimate international regulators, those platforms have slots, blackjack, poker, and live dealer games 24/7. So, no need to drive to Oklahoma or Louisiana when you can play from your couch.
The financial engineering behind this deal shows how complex casino transactions really work. VICI Properties, which owns the actual land and building, signed a new 25-year lease with Clairvest at $53 million annually. MGM saves $54 million per year in rent payments once everything closes. Clairvest and its partners are putting up $165 million in equity, with Silver Point Capital arranging the rest of the financing.
MGM’s using that freed-up cash for bigger things - they’re dropping $300 million on MGM Grand renovations and breaking ground on their Osaka casino in April. Thailand might legalize casinos next year, and MGM wants in on that action as well. Plus, they just announced a $2 billion share buyback program - another sign they think their stock is undervalued.
Deutsche Bank analysts say MGM needs 3% annual revenue growth at their Vegas properties just to keep margins flat - that’s tough when you’re competing with every other casino on the Strip. But online betting doesn’t have those problems, though - no massive buildings to maintain, thousands of employees to pay, or free drinks to hand out.
The deal closes in the first half of 2026 after Ohio gaming regulators approve everything. Until then, MGM keeps running the place and collecting profits. After that, Clairvest takes over and MGM focuses entirely on what’s working: online gambling, international expansion, and its flagship Vegas properties.
For a company that once chased every regional casino opportunity in America, MGM’s new strategy is refreshingly simple: bet big on digital, expand internationally, and let someone else run the smaller properties. With BetMGM growing 34% per year and regional casinos struggling to grow at all, it’s hard to argue with their logic.