The city of Springfield has sued MGM Resorts International over alleged failures to meet commitments tied to its Massachusetts casino, escalating a two-year dispute that also involves MGM’s proposed sale of the property’s gaming operations.
The lawsuit, filed Thursday, alleges MGM Springfield is operating with substantially fewer gaming positions and employees than outlined in its host community agreement with the city. The casino currently has 1,600 slot and video gaming machines and 50 table games, compared with commitments for more than 2,800 machines and at least 75 table games.
MGM employs about 1,500 people in Springfield, including roughly 1,000 full-time workers, below earlier commitments for 3,000 employees, including 2,200 full-time positions. The city has also raised concerns over the redevelopment of a nearby building.
MGM Springfield opened in 2018 as Massachusetts’ first full-scale resort-style casino. Wynn Resorts opened the state’s only other such property the following year in Everett. At MGM Springfield’s opening, Mayor Domenic Sarno joined the company’s top local executive in a vintage Rolls-Royce during a procession along Main Street.
The relationship between the city and MGM has since deteriorated, with officials negotiating for two years over issues connected to the host community agreement. MGM, however, says the dispute now concerns its effort to sell the casino operations.
The company has already sold the underlying real estate, while the host agreement gives Springfield approval authority over any transfer of the casino business.
MGM said it informed Sarno in early 2024 that it had identified a prospective buyer and hoped to secure city approval to proceed with a transaction. The company has not disclosed the identity of the potential buyer. MGM also said it agreed, at the city’s request, to convert 101 State St., next to the casino, into a hotel.
The company has accused Sarno and other Springfield officials of “not acting in good faith” and argues that the city has sought to delay the proposed sale rather than resolve the outstanding issues. MGM Resorts said Sarno and the city “initiated frivolous litigation to continue to delay its consideration of MGM’s request to approve the proposed sale of its interest in MGM Springfield to a well-qualified casino operator.”
The two sides had entered arbitration in an effort to resolve their disagreements, and MGM said the city faced a Friday deadline to respond.
MGM placed another casino, Northfield Park Racino in Ohio, on the market around the same period. That property was sold earlier this year to Clairvest Group, a Toronto-based private equity firm that owns a number of gambling businesses.