Summary: Having just opened a short time ago, the new MGM Springfield resort casino is already generating a massive amount of gross gaming revenues.
The MGM Springfield is the newest casino resort in the state of Massachusetts, having first opened on August 24th. The casino had a construction cost of $960 million and already has been very popular among guests after only a few days of operation. The Massachusetts Gaming Commission has released the gross gaming revenue report for the venue for August, and after only being open just over a week, the property managed to earn just over $9.4 million.
Busy First Week
The MGM Springfield was very busy during their less than eight days of operation in August. The property offers both slots and table games, with both seeing nice revenues for the days last month that the venue was open. Slots brought in just over $7.3 million while table games generated just over $2.1 million. From that amount, $2.3 million in taxes was generated for the state.
Michael Mathis, the President of MGM Springfield, commented on the opening numbers by stating:
While these gaming revenue figures represent less than eight days of operations in August, they demonstrate MGM Springfield’s tremendously successful opening week, when we welcomed more than 150,000 visitors in our first weekend alone. We are pleased our efforts to design a resort to complement Downtown Springfield is being so enthusiastically received.
Before opening officially, the MGM Springfield hosted two testing days with gaming on offer. Once the property passed the testing phase, then a VIP celebration was hosted before the grand opening event. The facility has seen large crowd numbers since opening and is sure to boost the overall gambling revenues as well as taxes paid in the state when added to what is already being produced at existing venues.
Other Operator Totals
The MGM Springfield joins an already robust gambling industry in Massachusetts and will only help to see the industry continue to grow. The revenues generated by MGM Springfield are divided in a particular way due to the property being a Category 1 resort casino. A total of 25% of the gross gaming revenue is taxed and the revenues are then place towards state funds that are determined based on state law.
Since the MGM is located in Springfield, they have signed a Host Community Agreement with the host city. The MGM property will pay $17.6 million in annual taxes, with that total beginning this fiscal year.
A ‘Minor’ Problem
While the MGM Springfield has done well with revenue earnings and visitor numbers, there have experienced a small problem since opening. Underage gambling has become an issue as patrons under the legal gambling age have been able to access the gaming floor. In the state, the legal gambling age is 21. However, patrons under that age have been seen on the gambling floor, which is a big no-no.
The property has recognized the problem and alerted the Gaming Commission. They have been given time to try and eliminate the issue. Officials of the property feel that part of the problem is that patrons are unaware that anyone under 21 is not allowed on the casino floor because the community is not used to having gaming facility access.
The property will have to come up with a solution that works or face stiff penalties in the future if children are found on the gaming floor, especially if an underage individual is allowed to gamble.