Springfield Sues MGM Resorts Over Blocked Casino Sale
The city of Springfield, Massachusetts filed suit against MGM Resorts International and its Blue Tarp Redevelopment subsidiary on Thursday, September 4, in Hampden Superior Court, accusing the casino giant of violating the 2013 Host Community Agreement that originally brought MGM Springfield to the city. MGM has fired back, calling the lawsuit "frivolous" and accusing Mayor Domenic Sarno's administration of trying to block a pending sale of the property.
What the city alleges
Springfield's complaint claims MGM has fallen short of specific commitments in the decade-old agreement: failing to maintain the required 3,000 employees, not keeping the agreed range of roughly 2,800 to 3,000 slot and video gaming machines and 75 to 100 table games, and neglecting to redevelop the 101 State Street property adjacent to the casino — a lot the city says has sat behind "scaffolding and Jersey barriers" for seven years.
MGM's response
MGM says it identified a "well-qualified casino operator" as a buyer for MGM Springfield in early 2024 and presented the city with redevelopment options for 101 State Street, including converting the site into a hotel — what the company calls "the most expensive option" on the table. MGM alleges the mayor's administration "continued to avoid moving the discussion forward" and has tried to "delay and obstruct" the sale. Mayor Sarno said the lawsuit was filed "in the best interests of the citizens of Springfield," arguing residents "deserve nothing less" than full compliance with the original agreement.
Why it matters
The prospective buyer hasn't been named publicly and no purchase price has been disclosed; MGM Springfield opened in August 2018 at a cost of roughly $960 million. A key procedural fight now sits alongside the underlying dispute: MGM and Blue Tarp want the matter resolved through private arbitration, while Springfield argues its claims fall outside the agreement's arbitration clause and belong in open court. How that threshold question gets resolved will likely shape how, and how quickly, the rest of the case proceeds — and it's a reminder that the host-community agreements many cities signed with casino operators over a decade ago can become a real source of leverage, and litigation, once an operator wants out.