The city of Springfield, Massachusetts, is suing MGM Springfield casino. Officials claim the company has not fulfilled its host agreement.
They filed the lawsuit on Sept. 3. It targets MGM Resorts and Blue Tarp Redevelopment, the entity that operates the property. The city alleges the two companies didn’t meet obligations in the agreement. The suit pointed to employment levels, gaming floor size, and refurbishment of a building near the casino.
Under the agreement, the casino must house “no fewer than approximately 2,800-3,000 slot and video gaming machines, approximately 75-100 table games, including a poker room and a high-limit area and related support, security, and customer service facilities.”
City officials say the property has fallen well short of that.
“Blue Tarp has failed to operate the casino with the required number of slot and video gaming machines and table games,” according to the lawsuit. “The casino operates with approximately 1,600 slot and video gaming machines and approximately 50 table games.”
Lawsuits Comes Amid Sale Talks
MGM Springfield opened in 2018 after reaching an agreement with the city in 2013. According to local media, the lawsuit comes amid media reports that the property’s owners may sell it.
MGM officials claim they notified Springfield Mayor Domenic Sarno in 2024 about a potential sale in the coming years. They contend the city is using the lawsuit to delay that move.
“Today, Mayor Sarno and the city of Springfield initiated frivolous litigation to continue to delay its consideration of MGM’s request to approve the proposed sale of its interest in MGM Springfield to a well-qualified casino operator,” MGM wrote in a statement.
“This lawsuit is just another tactic to delay and obstruct the process, jeopardizing the significant investments and long-term benefits the sale would deliver to the community.”
Different View On Arbitration
MGM and Blue Tarp have requested arbitration in the case. But the city says that falls outside parameters spelled out in the host agreement.
“The city’s discussions with MGM and Blue Tarp have been conducted in good faith over an extended period,” Springfield City Solicitor Stephen Buoniconti said. “Still, MGM and Blue Tarp remain in breach of their contractual obligations, and the city is compelled to file suit to enforce the terms of the HCA (host community agreement).”
MGM Springfield houses one of two poker rooms in the Bay State. The property boasts 16 tables and weekly tournaments. Encore Boston Harbor offers players 36 tables but doesn’t host tournaments. Also, some workers at the property are currently on strike.
Massachusetts has been in the news quite a bit lately regarding gaming issues. A judge ruled against Kalshi in January and state Supreme Court justices have been skeptical over the prediction market industry.
Additionally, gaming regulators are considering a proposal that would require sportsbooks to notify bettors when they limit their accounts and explain why.
