One of the biggest casinos in Massachusetts isn’t performing as well as many thought it would. According to new reports, the MGM Springfield Casino has failed to meet the revenue projects set on it this year. It’s tough news for the gaming venue, which is facing new competition from the Encore Boston Harbor.
It’s disappointing news to see this casino struggle. Today, we’re going to look at how much the casino revenue fell short. We’ll also talk about the state of Massachusetts’ gambling industry as a whole. Let’s get started!
Massachusetts’ Casino Industry Continues to Grow
For many years, lawmakers in Massachusetts worked to close off the gaming industry. Residents here voted to open a casino in 2012, yet no casinos were constructed here for years. Finally, in 2018, MGM Resorts opened a casino in Springfield.
The $960 million casino complex is one of the biggest on the East Coast. It features 125,000 square feet of total gaming space and a number of non-gaming activities. Hope was that this new casino would bring the state millions in additional revenue each year.
In June of 2019, Wynn Resorts decided to move into the Massachusetts gaming scene. This company opened the Encore Boston Harbor in Everett, located just miles from Boston. The Encore in Boston has proved extremely successful, generating millions of dollars just days after opening.
There are also some fantastic online casinos in MA available right now. The state does not regulate these websites, yet thousands of individuals make bets through them every single year.
It’s unclear whether or not any new gaming venues will open here in the near future. The MGM Springfield Casino and the Encore Boston Harbor are now competing with each other to bring in the most revenue.
MGM Springfield Casino Brings in Less Revenue than Expected
In Massachusetts’ limited gaming market, it was assumed that the MGM Springfield would be extremely successful. When first applying for a casino license, MGM anticipated that the Springfield casino would bring in $412 million in its first year of operating. Unfortunately, the casino has failed to meet these projections.
The MGM Springfield Casino just celebrated its first anniversary. According to new reports, this gaming venue earned $253 during its first year. That’s more than $100 million less than what was expected.
Mike Mathis, President and COO of the Springfield casino, commented on the revenue earnings to the media this week.
“We’re a little bit behind, say, our first-year projections,” he said. “But I feel really good about the trajectory of it.”
Mathis believes that increased competition from the Encore Boston Harbor is partly to blame. He feels that many of the patrons at MGM Springfield are choosing to gamble inside the Encore now.
“I think we may have underestimated that level of loyalty, and what it would take for those customers to give us a shot,” Mathis said.
Future of the MGM Springfield
It’s tough to predict how this casino will fare in the future. It’s clear that the Encore Boston Harbor is winning the revenue fight, yet the MGM Springfield Casino is still the top gaming venue in the south-east of the state. Of course, Boston is the most densely-populated areas of Massachusetts and brings in significantly more gamblers.
The MGM casino will continue to struggle with the competition. This isn’t deterring the casino’s officials, though. Owners of this casino predict that it will bring in even more revenue during its second year of operating.
This casino plans to bring in more people from outside of New England next year. Some gaming analysts question whether this is feasible. Several nearby states including New York and Pennsylvania have begun to expand their gambling markets. They are now offering sports betting and have introduced plans to create new casinos.
With more states embracing gambling, the MGM Springfield Casino will struggle to bring in visitors from outside of Massachusetts. Alan Woinski, a gaming analyst for Gaming USA Corp, believes it will be years before this gambling venue meets its revenue projections.
“I don’t know if it’s just reluctance to update that model or to bring it up to reality, but it’s been going on for over 10 years now,” he said.
Make sure to stay tuned for more news on Massachusetts gambling industry!