Sports betting will soon be available in Ohio, thanks to the billion dollar deal between Hard Rock Casino and MGM Resorts Online Casino.
The Rocksino Northfield Park is now part of MGM organization, which gives the company access to the Ohio sports betting industry.
Together with MGM Growth Properties LLC (also known as MGP), MGM International Resorts are rearranging its new Ohio asset.
MGM Resort is obtaining the operating rights and the possession of Hard Rock Casino by a leasing from MGP.
The Acquisition Of Hard Rock Casino
Тhe CEO of MGM International, Jim Murren, gave a press release about the new company asset, stating that they are happy to greet the Rocksino and all its members and are looking forward to them to become a part of the resorts’ big family. The chairman is welcoming the partnership and will participate in the smooth transformation.
Operating since 2013, Hard Rock Casino has become one of the biggest players in the gaming and entertainment industry. The Rocksino is known for its outstanding location, hard-working employees and fine assets.
According to Murren, it will be a great addition to the company portfolio. The deal will be of a mutual benefit, as the casino will profit from the partnership with the famous media company. This acquisition is considered to be very profitable for both sides.
The Future Of MGM Resorts Online Casino
MGM Growth Properties LLC acquired Hard Rock Casino in July, after closing a 1 billion dollar deal with Milstein Entertainment. MGM Resorts will lease its new asset, thanks to а subsidiary of MGP.
The Rocksino is situated between Akron and Cleveland. Known as a market leader in sports betting and entertainment, the Hard Rock Casino has more than 2 000 video lottery terminals, along with restaurants, retail spaces and a horse racetrack called Northfield Park.
This particular casino is one of the most popular in Ohio in the past years. Its net revenue for the past year is nearly 300 million dollars.
As stated in the deal, the Rocksino will have an increased rent payment of $60 million annually. Another term by MGM Resorts is the 90% fixed rent, which will grow with roughly 2% on a yearly basis until 2022.
The CEO of MGP James Stewart expressed his excitement about the partnership with MGM Resorts and the long-awaited acquisition. He revealed that another company was interested in the property, but couldn’t match the offer.
MGM Resorts proposed a big enough rental stream, which will secure the revenue, as stated in the master lease deal. Stewart not only predicts that this transformation to be accredited by the AFFO, but also expects a significant growth of dividends and company share value.
When Will Ohio Sports Betting Be Finally On The Market?
The question now is when will be Ohio Sports Betting available? Wagering is becoming legal in more USA states and MGM isn’t the only company to use this to their advantage.
Recently, the company closed a deal with Boyd Gaming which provided access to 15 new gaming markets. But it turns out, MGM will have to wait a little bit more for Ohio.
Although state’s representatives instituted gambling bills in the Senate and the House of Representatives in July 2018, there are some parties against it. It turns out that not everyone is ready for Ohio sports betting to be legislated right away.
Soon after the Supreme Court overruled PASPA, the Ohio governor’s spokesman gave a statement on the Columbus Dispatch. Lynch explained that sports betting expansion isn’t a prime concern and they will look into the possible outcome on Ohio policies first.
The discussion on wagering is most likely to occur after the long-awaited elections. According to Larry Obhof, the Senate President in Ohio, gambling legislation can be debated after the elections in November.
This means that Ohio sports betting probably won’t be available until 2019. However, MGM Resorts Online Casino is in it for the long run. Known as a lead investor in the sports betting industry, MGM proved this once again with its new Ohio asset.