MGM is buying the racetrack and racino in Yonkers for US$850 million, the company said in a press release.
“We are excited to announce the addition of Empire City to the MGM Resorts portfolio. This acquisition represents an excellent opportunity to further solidify our presence on the East Coast, and in particular, expand our reach into the high-density New York City region,” said Jim Murren, chairman and CEO of MGM.
“We believe this transaction enhances our free cash flow profile and presents attractive future opportunities for the Company, and we look forward to welcoming the Empire City team and guests to the MGM Resorts family,” Murren added.
For the last twelve months ended March 31, 2018, Empire City reported approximately US$ 230 million in net revenues. The press release did not specifically mention sports betting as part of the acquisition, but it was almost certainly part of the calculus.
New York is one of several states considering sports betting legislation. It’s already legal and able to be regulated at the aforementioned commercial casinos under existing state law. But it’s not clear if that will roll out without a new enabling law for the state’s racetracks (like Empire City) and off-track betting facilities.
Empire City is in the district of Assemblymember Gary Pretlow, who heads that chamber’s gaming committee. A draft of his proposed sports betting legislation surfaced this weekend, and will likely be introduced this week. The NY legislature is scheduled to wrap up its session in less than a month.
MGM is already poised to offer NJ sports betting via Borgata in Atlantic City, and its two casinos in Mississippi.
Source: GMB / Legal Sports Report
