MGM Growth Properties Purchases Empire City

Publishing: May 31, 2018

MGM, together with MGP (MGM Growth Properties) will now be operating in New York. The two companies reported to the media that they have purchased Empire City Casino and Racetrack for a total of AUD$850 million. With this new deal, MGM anticipates making it big in New York City. Read on below and learn more about this exciting story.

The Purchase of Empire City

Empire City Casino and Racetrack will be sold to MGP, who will soon lease it to MGM. The international chairman of MGM, Jim Murren said to the media the purchase of Empire City represents a fantastic chance for them to solidify their presence in the East coast market further. He added that they specifically could not wait to offer their services in the high-density city of New York.

MGM is expecting that some of the money used for the purchase, about AU$260 million will be set aside through stock. If Empire City’s license for Live Table games gets approved, MGM would have to pay an extra AU$50 million in the event that they agree to the terms offered by Empire City before the 31st of December, 2024.

Empire City casino currently has over 5 200 pokie machines and a wide range of electronic table games to mention a few. More so, the casino has a restaurant, and a simulcast live horse race gambling. From the 1st of April 2017 to the 31st of March 2018, Empire City made about AUD$230 million in revenue.

MGM has always wanted to offer its services in New York for quite some time now. About five years ago, the online casino submitted a bid to purchase four commercial casino licenses available but was denied.

Overview

The certainty that New York will be legalising sports betting is a pushing factor to purchase Empire City, regardless of whether MGN admitting it or not. This new deal between Empire City and MGM is expected to be official within the first quarter of 2019.