Springfield Sues MGM as Casino Giant Accuses City of Blocking Casino Sale

The City of Springfield, Mass., has sued MGM Resorts International over alleged breaches of its casino host agreement, prompting the gaming giant to accuse city officials of obstructing its efforts to sell MGM Springfield to another operator.

The lawsuit, filed Thursday in Hampden Superior Court, alleges MGM and its Blue Tarp Redevelopment subsidiary have failed to meet commitments related to employment, the size of the casino’s gaming floor, and redevelopment of a prominent downtown property.

But MGM hit back, calling the litigation “frivolous” and claiming it was the latest attempt by Mayor Domenic Sarno’s administration to delay approval of a proposed sale of the casino.

MGM said it notified Sarno and other city representatives in early 2024 of the proposed transaction and subsequently provided information about a prospective buyer and its plans for the property.

The company described the unidentified buyer as a “well-qualified casino operator” and said it had provided assurances that the Host Community Agreement (HCA) would continue to be honored following a transfer.

Sales Talk

Reports that MGM was exploring a sale of the Springfield property first emerged in March 2024. The following month, Sarno met MGM CEO Bill Hornbuckle to discuss the possibility.

At the time, the city described a potential sale as an “ongoing process,” with Sarno stressing that any new operator would be expected to honor MGM’s commitments under the HCA.

MGM’s latest statement sheds more light on how those discussions progressed, indicating a prospective buyer had been identified and plans for the casino presented to city officials.

MGM also claimed the buyer agreed to convert 101 State Street, a property adjacent to the casino complex, into a hotel after city officials expressed a preference for that option.

“Despite this being the most expensive option discussed, MGM and buyer agreed to this, but the Mayor and the City continued to avoid moving the discussion forward,” the company said.

MGM accused the city of attempting to “delay and obstruct” the transaction.

Springfield Alleges Breaches

Springfield tells a different story. Sarno said his administration had spent nearly two years negotiating with MGM over alleged noncompliance with the 2013 HCA without reaching an agreement.

Among the alleged breaches, the city claims MGM failed to maintain at least 3,000 employees and the agreed complement of between 2,800 and 3,000 slot and video gaming machines and 75 to 100 table games.

Officials also accuse MGM of failing to refurbish 101 State Street, which the city says has instead been surrounded by scaffolding and Jersey barriers for seven years.

Last month, Sarno publicly contrasted the building with redevelopment work underway elsewhere downtown, saying MGM’s failure to redevelop the property was becoming “even more glaring.”

City Solicitor Stephen Buoniconti said the lawsuit was necessary to enforce the HCA after extended discussions failed to resolve the dispute.

MGM and Blue Tarp have sought to move the dispute into private arbitration. The city argues the issues fall outside the agreement’s “narrow arbitration clauses” and should instead be decided by a court.

MGM Springfield opened in August 2018 at a cost of approximately $960 million.