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MGM Springfield’s first-year gaming revenue was $144M below projections

Boston Business Journal

Jim Kinney

September 17, 2019

MGM Springfield’s gambling revenue was up 2.7% in August compared to July, but figures released Monday by the Massachusetts Gaming Commission show the casino continues to fall well short of projections.

Since its opening in late August 2018, MGM Springfield has brought in less than two thirds of the $418 million in gross gaming revenue MGM executives told the state the casino would bring in during its first year. The casino’s gross gaming revenue was $273.8 million from its opening on Aug. 24, 2018 through the end of August 2019.

MGM (NYSE: MGM) told regulators the casino would bring in an average of $34.8 million a month. Instead, the average over the first year was $22 million a month, with a high of $25.7 million in March 2019.

In a prepared statement, MGM focused on having had a solid August 2019. Michael Mathis, president of MGM Springfield, said the casino saw nearly 500,000 visitors in August. Aerosmith played four sold-out shows and the casino’s outdoor concert venue and comedy club saw crowds.

“We continue to be pleased with how well we’re being received in the market,” Mathis said.

The statement continued: "As our second year of operation begins, we look forward to the opportunities ahead reaffirming our commitment to the community and Commonwealth through a robust calendar of events, exciting concerts, eclectic dining, dynamic casino promotions and world-class guest services synonymous with MGM Resorts.”

Gross gaming revenues were $20,966,172 in August, compared to $20,398,605 in July.

MGM Springfield officials have admitted to investors and to state regulators that the casino has taken some time to “ramp up" and be as busy as they had planned it to be at this point.

June was the Springfield casino’s second-worst full month of operation, barely beating the $19.7 million in gross gambling revenue recorded in January.

Variations in the calendar can affect monthly results, August’s numbers benefitted from having five weekends.

The $273.8 million in gross gaming revenue yielded $68.45 million in state taxes, according to the Massachusetts Gaming Commission.

Across the state, Encore Boston Harbor, owned by Wynn Resorts (Nasdaq: WYNN), reported $52.4 million in gross gaming revenue in August 2019, its second full month of operation. That was up from $48.5 million in July.

Plainridge Park Casino had just more than $12 million in slot revenue in August 2019. Plainridge doesn’t have table games.

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