MGM Resorts just struck a deal to sell its MGM Northfield Park racino near Cleveland to Clairvest Group, a Toronto-based private equity firm, for $546 million cash. The sale nets MGM around $420 million after taxes and fees – a nice profit considering they bought the operating rights for $275 million back in 2019.

The numbers seem interesting – Northfield Park secured $137 million in adjusted EBITDAR for the year ending June 30, 2025. So, that means Clairvest is paying about 6.6 times the property’s annual earnings, which is pretty standard for these types of deals. The 74,000-square-foot facility packs 1,600 video lottery terminals and runs more than 200 live harness races each year on its half-mile track.

But this isn’t Clairvest’s first rodeo – it’s actually their seventeenth gaming investment over 25 years. They own Delaware Park Casino, just opened The Nash Casino in New Hampshire with 1,000 historical horse racing machines, and control Accel Entertainment – Illinois’s biggest video gaming terminal operator. Also, their best deal was Rivers Casino in Illinois, which they flipped for $1.45 billion after putting in way less, scoring an 8.4x return on their money.

Ohio’s gaming market seems pretty hot right now – the state’s casinos and racinos hit a record $204 million in combined revenue in August 2024. Slots alone bring in more than $60 million per month, with table games adding another $23 million.

The four land-based casinos pulled in $1.01 billion total in 2024. But all that gambling brings some serious tax money – casinos pay 33% of gross revenue to fund schools and public programs. Speaking of gaming options, many seasoned players nowadays check out the best live online casinos since they have real dealers, HD streaming, and that authentic casino atmosphere right from home.

MGM CEO Bill Hornbuckle didn’t mince words about why they’re selling: “We’re focused on growing our online business, developing our international expansion opportunities, and continuing to invest in our leading integrated resorts domestically.” Translation: MGM wants to put its money into BetMGM, its online betting platform, and big projects like its planned Japan resort coming in 2030.

So, the company posted record revenues of $17.2 billion in 2024, mostly thanks to MGM China crushing it with $1.1 billion in adjusted EBITDAR – up 25% from last year. But also, they’ve been buying back their own stock like crazy, spending $1.4 billion to repurchase 33 million shares in 2024 alone.

Well, here’s where it gets interesting – VICI Properties actually owns the Northfield Park building and land, so they’re just the landlord. Clairvest will sign a new 25-year lease starting at $53 million per year (or $54 million if the deal closes after May 2026). MGM, meanwhile, gets to reduce its rent payments to VICI by $54 million a year once this closes.

Clairvest and its partners are putting up about $165 million in equity for this deal – and Michael Wagman, Clairvest’s president, sounds pretty pumped: “We’re excited by the growth potential at Northfield Park. We intend to build on the strong foundation laid by MGM.” Based on what they did with Delaware Park – pumping in $10 million for upgrades and doubling EBITDA, expect some serious renovations.

The timing makes sense, though. Ohio’s sports betting market skyrocketed after launching in January 2023, hitting $902.9 million in bets just in October 2024. But even though most of that action happens online, it brings traffic to physical casinos as well. The Cleveland Cavaliers partner with Caesars Sportsbook, the Reds work with BetMGM – everyone wants a piece.

The deal still needs approval from Ohio gaming regulators and should close by mid-2026. So, nobody’s saying what Clairvest will rename the place yet – but one thing’s clear: private equity firms like Clairvest see regional casinos as goldmines. They bring steady cash, there’s room to improve operations, and the gaming market keeps expanding.