MGM Resorts International has agreed to sell its MGM Northfield Park operations in Ohio to Canadian private equity firm Clairvest Group for $546 million in cash. The transaction is expected to be completed in the first half of 2026, pending regulatory approval. This sale will bring MGM approximately $420 million in after-tax cash inflow, as part of its strategic realignment to focus resources on digital gaming and international market expansion. The Northfield Park property features 74,000 square feet of gaming space, 1,600 video lottery terminals, and a racetrack, and is projected to generate $137 million in pre-tax profits for the fiscal year 2025. The property owner, VICI Properties, will continue to own the real estate and has signed a new lease agreement with Clairvest.
Transaction Overview and Amount
MGM Resorts International has reached an agreement with Canadian private equity firm Clairvest Group to sell its MGM Northfield Park operations in Ohio for $546 million in cash. This transaction marks Clairvest's 17th investment in the gaming industry, signifying its ongoing expansion in the sector.
The transaction is expected to be completed in the first half of 2026, subject to regulatory approval and standard requirements, with Clairvest and its co-investors injecting approximately $165 million.
Property Details and Facilities
MGM Northfield Park, located near Akron, Ohio, was formerly known as Hard Rock Rocksino Northfield Park. The facility boasts 74,000 square feet of gaming space, equipped with 1,600 video lottery terminals and a half-mile standard racetrack.
The property also includes several dining venues and a venue that can accommodate 1,820 people, offering a comprehensive entertainment experience.
Financial Impact and History
The sale will bring MGM approximately $420 million in after-tax cash inflow (excluding transaction costs). MGM acquired the business from MGM Growth Properties in 2019 for $275 million and renamed it from Hard Rock Rocksino to Northfield Park.
As of June 30, 2025, the property is expected to generate about $137 million in pre-tax profits, demonstrating its strong performance under MGM's management.
Strategic Realignment and Focus
MGM Resorts International CEO Bill Hornbuckle stated that the sale aligns with the company's strategic focus on digital business and international growth. He expressed gratitude for the contributions of the Northfield Park staff and emphasized the company's focus on core objectives.
The company plans to concentrate resources on digital gaming expansion, international market development, and global flagship resort investments, in line with its vision to become a top global gaming entertainment company.
Ownership and Lease Arrangements
Real estate investment trust VICI Properties will continue to own the Northfield Park property. The agreement between Clairvest and VICI includes signing a new lease, with an initial annual base rent of $53 million (to be $54 million after May 1, 2026).
The lease term is for 25 years, with three 10-year renewal options, providing stability for long-term operations.
Future Development Plans
Clairvest plans to expand the MGM Northfield Park business in the coming years. Company president Michael Wagman is optimistic about the racetrack's development potential and is committed to working with VICI Properties to enhance property value.
This plan reflects Clairvest's broad strategy of investing in and developing high-potential gaming entertainment properties.
Rent Adjustment and Financial Strategy
Upon completion of the sale, MGM Resorts will renegotiate the lease with VICI Properties, reducing its annual rent obligation by $54 million. This adjustment is part of MGM's broader financial strategy aimed at reducing operating costs.
Resources will be focused on areas with the highest growth potential, supporting the company's long-term development strategy.
Regulatory Process and Timeline
The transaction is expected to be completed in the first half of 2026, but requires approval from the Ohio gaming regulatory authorities. The regulatory review will assess the transaction's compliance, financial structure, and Clairvest's operational qualifications.
The entire process may take several months, depending on the workload and requirements of the regulatory authorities.
Industry Background and Market Trends
This transaction reflects the trend of consolidation and strategic realignment in the gaming industry. Large operators like MGM are reassessing their portfolios, focusing on core growth areas, while private equity firms seek opportunities to invest in mature properties.
Regional gaming markets continue to attract investor interest, especially properties with potential for facility upgrades and business expansion.
Employee and Operational Transition
Upon completion of the transaction, existing employees are expected to transition to Clairvest management. MGM is committed to ensuring a smooth transition, maintaining business continuity and employee rights.
Clairvest will respect existing labor contracts and operational agreements, ensuring service quality remains unaffected.
Long-Term Outlook and Industry Impact
This sale is an important step in MGM's strategic realignment and an expansion of Clairvest's gaming investment portfolio. After the transaction is completed, Northfield Park will continue to operate as a significant gaming entertainment venue in Ohio.
Industry observers believe such transactions may increase, reflecting ongoing changes in capital flows and strategic focuses in the gaming market.
