MGM Springfield on course to post disappointing first-year result
World Casino News
June 18, 2019
In Massachusetts and the new MGM Springfield property is reportedly on track to record a disappointing first year despite recording a 2.14% increase month-on-month in May gross gaming revenues to slightly above $22.25 million.
Falling short of expectations:
According to a Monday report utilizing official figures from the Massachusetts Gaming Commission (pdf), the $960 million city-center venue began welcoming players in late-August and has so far managed to chalk up combined gross gaming revenues of around $212.46 million. But, this ten-month amount is purportedly only about half of the $416 million operator MGM Resorts International had earlier predicted the development would bring in over the course of its first year in business.
MGM Springfield features a 125,000 sq ft casino floor and the official data reportedly also shows that the Hampden County property has so far managed to register some $66.94 million in gross revenues from its collection of over 140 gaming tables while amassing a further $145.52 million from its array of about 2,550 slots.
The Republican Newspaper moreover reported that the central Massachusetts casino recorded a 15% decrease month-on-month in gaming revenues for April to approximately $21.81 million although this had been preceded by a comparable 17.7% boost for March to $25.68 million. However, MGM Springfield must now record roughly $67.84 million in gross gaming revenues for each of the next three months if it is to meet MGM Resorts International’s earlier $416 million first-year revenue target.
In response to these seemingly disappointing numbers, Las Vegas-headquartered MGM has initiated a range of new entertainment offerings designed to improve business at the Springfield facility. Michael Mathis, President and Chief Operating Officer for MGM Springfield, purportedly declared that these have included the Great Outdoor Giveaway as well as ‘various other casino marketing promotions’ and are to be complemented by an outdoor concert series alongside a Food Truck Fridays campaign.
Mathis’ statement read…
“We continue to be pleased with our performance. We’re capturing market share and growing loyalty. Our Roar Comedy Series continued to be the place for laughs in the region with several near sell-out performances and we capped off the month with a fun new advertising campaign highlighting MGM Springfield’s ease of access, convenience and the place to go for spontaneous fun and excitement.”
MGM Springfield has so far added some $53.11 million to the eastern state’s budget although it remains to be seen whether this contribution will decrease following the opening later this month of the Encore Boston Harbor venue from Wynn Resorts Limited or the later building by the Mohegan Tribe and the Mashantucket Pequot Tribal Nation of a proposed satellite casino for the nearby Connecticut community of East Windsor.