A deal to sell a popular racino in Ohio has crossed the finish line.
MGM Resorts International has announced the sale of its MGM Northfield Park operations to Clairvest Group Inc., a private equity management firm.
This transaction, valued at $546 million, marks a significant step in MGM Resorts' strategic vision to enhance and refocus its business portfolio.
In July 2018, MGM Growth Properties bought the Hard Rock Rocksino Northfield Park. The following year, MGM Resorts purchased the business operations from MGM Growth Properties for $275 million, along with some extra costs, and renamed it MGM Northfield Park.
Now, Clairvest has come in to change the game again.
MGM Northfield Park is a Racino
Ohio has seven so-called "racinos."
These are gambling venues located at horse racetracks, but they only have slot machines and don't offer table games. MGM Northfield Park is one of them.
An executive order also allowed the seven racetracks to have video lottery terminals (VLTs), which are similar to slot machines. Back in 2009, voters in Ohio agreed to a change in the law that allowed four casinos to open in the state.
Casinos, unlike racinos, do not have a racetrack. However, they offer table games like poker or blackjack.
Both casinos and racinos share something in common: they are regulated by specific commissions. Racinos fall under the Ohio Lottery Commission, while casinos are monitored by the Ohio Casino Control Commission.
Strategic Shift for MGM Resorts
Bill Hornbuckle, CEO & President of MGM Resorts International, expressed gratitude towards the employees of MGM Northfield Park, saying, "I want to thank our MGM Northfield Park employees who have consistently delivered world-class gaming and entertainment experiences to our guests. This is a great property with a great opportunity ahead."
He further explained the company's broader vision: "At MGM Resorts, our vision is to be the world's premier gaming entertainment company. To achieve this vision, we're focused on growing our digital business, developing our international expansion opportunities, and continuing to invest in our leading integrated resorts domestically."
Financial Highlights of the Sale
For MGM Resorts, this sale is not only an operational shift but also an impressive financial achievement.
Jonathan Halkyard, CFO & Treasurer of MGM Resorts International, praised the financial success of the transaction. "This is an excellent result for MGM Resorts and demonstrates consistency in driving transaction multiples at meaningful premiums over where MGM Resorts currently trades. The divestiture underscores MGM Resorts' exceptional financial stewardship, delivering substantial value well beyond the original acquisition price," he stated.
The financial adjustments resulting from this sale include a modification to MGM Resorts' lease agreement with VICI, which is expected to reduce annual rent by $54 million. After accounting for taxes and transaction costs, MGM Resorts anticipates approximately $420 million in net cash proceeds.
Clairvest's Investment in Gaming and Horse Tracks
So, why is Clairvest Group Inc. interested in acquiring MGM Northfield Park?
The Toronto-based private equity firm has a strong track record (no pun intended) in the gaming and horse racing sectors. Clairvest sees racinos — venues offering both casino games and horse racing — as stable and cash-generating assets.
This aligns well with its long-term investment strategy, focusing on diversified revenue streams such as gaming, sports betting, hospitality, and racing.
Clairvest has successfully invested in similar properties across states like Indiana, Delaware, and Wyoming. Their strategy includes partnering with experienced operators, wherein Clairvest provides both the equity capital and strategic guidance necessary for growth.
Ohio's Appeal to Clairvest
Ohio presents a particularly attractive market for Clairvest.
The state’s racinos benefit from a favorable regulatory structure that combines video lottery terminal (VLT) gaming with live or simulcast horse racing.
The property’s mix of 1,600 video lottery terminals, harness racetrack, entertainment venue, and food outlets provides multiple revenue streams, aligning with Clairvest’s experience in hybrid gaming operations.
Additionally, Clairvest views Ohio as:
A stable, expanding, regulated gaming market with strong local demand.
A central hub for historical horse racing (HHR) expansion potential, aligning with Clairvest’s other HHR investments in Wyoming and New Hampshire.
A jurisdiction with opportunities for operational optimization and potential future iGaming liberalization.
Clairvest is interested in horse tracks and racinos in Ohio because such properties fit its broader gaming investment thesis, including:
- Acquiring under-optimized but secure regional gaming assets that can generate steady returns.
- Benefit from regulatory stability.
- Hold upside potential in future gaming verticals.
For Clairvest, the acquisition of MGM Northfield Park fits into its broader strategy of purchasing under-optimized regional gaming assets. These properties are seen as secure investments with potential for technological modernization and future growth in gaming verticals.
MGM Northfield Deal Awaiting Finalization
The transaction is expected to close in the first half of 2026, pending regulatory approvals and other customary closing conditions.
This move positions both MGM Resorts and Clairvest Group Inc. for strategic success in their respective areas of focus within the gaming industry.
