MGM Resorts International (NYSE:MGM) recently signed a deal to buy 150 remote acres in Brimfield, Massachusetts. MGM plans to develop an integrated resort on this site, which is approximately 80 miles from Boston. Last November, the state Legislature passed a law which authorized three resort casinos and one slot parlor in Massachusetts. MGM plans to partner with local landowner David Callahan in this venture. The competition is quite intense for the three casino licenses. Other potential bidders vying for a presence in Massachusetts include Caesars Entertainment, Wynn Resorts (NASDAQ:WYNN), Las Vegas Sands (NYSE:LVS), Ameristar Casinos, Hard Rock International and Mohegan Sun. The three casino licenses will be awarded by a five-member state gaming commission that has yet to be formed.
We believe acquiring casino license in Massachusetts would provide MGM Resorts first movers advantage in the region which just opened its doors to casino operators. The majority of MGM’s operations are based in Las Vegas, Nevada. It does have well-known brands under its name including Bellagio, MGM Grand Las Vegas, The Mirage, Mandalay Bay among others. This license could provide it access to prospective customers on the east coast as well.
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