Springfield has filed suit against MGM Resorts International alleging the casino operator failed to meet job and gaming commitments and is now seeking to sell its Massachusetts casino operations without resolving the dispute
MGM Resorts International’s plan to sell its Springfield casino operations has collided head-on with a lawsuit from the city, which accuses the company of failing to deliver on core promises for jobs and gaming capacity. The legal action, filed by Springfield officials, now threatens to stall any transfer of the casino’s business and exposes a deep rift between the city and one of the state’s highest-profile gambling operators.
Host Agreement at the Center
At the heart of the dispute is the host community agreement that MGM signed with Springfield before opening the casino in 2018. The city’s lawsuit alleges that MGM Springfield is currently operating with far fewer slot machines, table games, and employees than the agreement requires. According to the filing, the casino now offers 1,600 slot and video gaming machines and 50 table games—well below the original commitments of more than 2,800 machines and at least 75 tables. Employment numbers have also fallen short, with about 1,500 total staff and only 1,000 full-time positions, compared to the promised 3,000 jobs and 2,200 full-time roles.
Sale Blocked by City Approval
MGM Resorts has already sold the real estate beneath the Springfield property, but the host agreement gives the city approval power over any sale of the casino’s gaming operations. MGM says it notified Mayor Domenic Sarno in early 2024 that it had found a potential buyer for the business, but the company has not named the prospective operator. The city, citing unresolved issues over job and gaming commitments, has refused to grant approval, effectively blocking the sale. MGM accuses city officials of acting in bad faith and using litigation to delay the process, while Springfield maintains that the operator must first meet its obligations before any transfer can proceed.
Operational and Legal Fallout
The dispute has already spilled into arbitration, with both sides locked in negotiations for two years. Springfield’s lawsuit also raises concerns about the redevelopment of a neighboring building at 101 State St., which MGM agreed to convert into a hotel at the city’s request. Meanwhile, MGM has moved to sell other casino assets, including Northfield Park Racino in Ohio, which was acquired by Clairvest Group earlier this year. The Springfield standoff, however, remains unresolved, with the city’s legal action now the primary obstacle to any operational handover.
Host community agreements are binding contracts between casino operators and local governments, setting minimum requirements for jobs, gaming positions, and sometimes redevelopment projects. These agreements are designed to ensure that casinos deliver tangible economic benefits to their host cities. When operators fall short, cities can use legal action or approval rights to enforce compliance or block sales. In Massachusetts, such agreements are a critical part of the regulatory framework for casino licensing and ongoing operations.
