MGM Resorts International (MGM:US), the largest casino operator on the Las Vegas Strip, announced plans to develop an $800 million gambling, hotel and entertainment project in Springfield, Massachusetts.
The MGM Springfield project, if approved, would be located on about 10 acres of land that were heavily damaged by a June 2011 tornado, the Las Vegas-based company said today in a statement. The plans include restaurants, movie theaters and shopping.
MGM Resorts said it submitted a $400,000 fee that will fund the official vetting and negotiating process. The project would be located on three city blocks close to Interstate 91. The company said it controls several parcels in the area and has others under contract.
Massachusetts legislators legalized gambling last year, authorizing a maximum of three casinos in three regions. MGM will be competing for a license in the western part of the state. At least five other operators are eyeing locations there, including Ameristar Casinos Inc. (ASCA:US), Penn National Gaming Inc. (PENN:US), Mohegan Tribal Gaming Authority and Seminole Hard Rock Entertainment Inc., according to an Aug. 20 analysis by the law firm Goodwin Procter LLP.
MGM Resorts rose 0.2 percent to $10.50 at the close in New York. The stock has gained (MGM:US) 0.7 percent this year.
In March, MGM Resorts dropped out of a casino project in Brimfield, Massachusetts, citing the scope of infrastructure work needed in the area, and said it would seek an alternative location.
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