Spin-Off City

Global Gaming Business Magazine

In November 2013, Penn National became the first gaming company to split itself in two.

David Katz, managing director of New York-based financial services firm Telsey Advisory Group, agrees that MGP could be advantageous for the Las Vegas gaming giant. “We have a positive view on it because MGM owns a lot of really big-box real estate in a very concentrated, singular market,” Katz says. “Trying to alleviate some of that bad risk is what they’re ultimately trying to achieve, as well as providing themselves in the future with a vehicle with a lower cost of capital that they can use to grow.”

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