MASS CASINO WATCH
MGM Projected Gross Gaming Revenue vs. Reality
In a 2014 finance presentation, MGM Resorts International claimed that projected revenues would be $412 million in year 1, $485 Million in year 2, and over $500 Million in the three subsequent years. In actuality, MGM has brought in less than two-thirds of what it projected. According to the Boston Globe, 13 months after opening, MGM Springfield has only produced $293.6 million in gaming revenue when they were slated to bring in $412 million.
Wynn/Encore Projected Gross Gaming Revenue vs. Reality
Wynn Resorts claimed that at the end of their first year that Encore Boston Harbor will bring in $804 Million in combined revenue product at the end of their first year. Three months after opening, they have brought in roughly $166 Million in revenue, which is nearly $44 Million dollars below the $200 Million that they need in order to hit that goal.
Why does this matter?
One of the conditions for approval of the licenses that MGM and Wynn were awarded was the amount of revenue that they would bring to the Commonwealth. If, upon opening, they don’t meet those expectations or make good on their promises, then we have no way of enforcing standards. Mass Gaming Watch will keep an eye on this and make sure to update as more information comes.