The city of Springfield, Massachusetts, has sued MGM Springfield, alleging that the casino operator failed to meet obligations under its host community agreement. The case could complicate reported plans to sell the property.
The lawsuit was filed on September 3 against MGM Resorts International and Blue Tarp Redevelopment, the entity operating the casino. Springfield claims the companies have fallen short on required employment levels, gaming floor capacity and the refurbishment of a nearby building.
Under the agreement, MGM Springfield is required to offer “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.”
The city alleges that the casino currently has approximately 1,600 slot and video gaming machines and approximately 50 table games.
Dispute emerges amid potential sale
MGM Springfield opened in 2018 after the city and MGM reached their agreement in 2013. The lawsuit follows reports that the property’s owners may be seeking a buyer.
MGM said it notified Springfield Mayor Domenic Sarno in 2024 about the possibility of a sale in the coming years. The company claims the city is using the litigation to delay the proposed transaction.
“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 said 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.”
MGM and Blue Tarp have asked for the dispute to go to arbitration. Springfield argues that arbitration is not available under the terms of 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).”
Impact on Massachusetts poker
MGM Springfield operates one of Massachusetts’ two poker rooms. It has 16 tables and runs weekly tournaments. Encore Boston Harbor has 36 tables but does not host tournaments. Some MGM Springfield workers are also on strike.
The state has recently faced other gaming disputes. A judge ruled against Kalshi in January, while Massachusetts Supreme Court justices have expressed skepticism about the prediction market industry. Regulators are also considering a requirement for sportsbooks to tell bettors when their accounts are limited and explain the reason.
