Massachusetts’ casino industry continues to change. After months of disappointing results, it appears revenue at MGM Springfield is finally increasing. It’s fantastic news for the owners of this venue, who have invested millions of dollars to bring in more players.
Today, we’re going to discuss the history of the MGM Springfield Casino. We’ll also look at what this recent spike means for the property moving forward.
Let’s get into it!
MGM Springfield Has Been a Major Disappointment
Since 2011, Massachusetts has given three casinos permission to operate in the state. The first gambling venue to open here was MGM Springfield. MGM Resorts International built this property, which many believed would be extremely lucrative.
It was widely believed that Massachusetts would become one of the country’s next major gambling hubs. A huge number of individuals here make trips to Atlantic City in order to gamble inside casinos. With local casinos, this would no longer be necessary.
At first, MGM Springfield proved to be successful. As time went on, however, visitation here dropped. In June of 2019, Encore Boston Harbor opened up near Boston and captured a huge percentage of the state’s casino market.
Many gamblers who previously played inside MGM Springfield quickly made the switch to the Wynn Resorts-owned casino. As a result, revenue at MGM Springfield began to plummet. It seemed like just a matter of time before this casino was sold to the highest bidder.
That hasn’t been the case, though. Despite poor revenue figures, MGM Resorts continues to invest money here. Now, it appears that decision may be paying off.
Revenue at MGM Springfield Finally Increases
The fact that MGM Resorts continued to invest in their Massachusetts property was a little surprising. On the surface, it looked like this was a property that was bleeding money. Perhaps company officials saw something no else did.
Recent reports indicate that gambling revenue at this property officially increased in January. The casino’s gross gambling revenue was $20.6 million, compared to just $18.9 million in December. It’s not a massive increase, yet company officials have to be pleased.
Initial estimates predicted that revenue at MGM Springfield would be close to $34.8 million per month. Unfortunately, the most this property ever brought in during a single month was around $27 million. Overall, the casino brought in close to $252 million last year.
This wasn’t for a lack of trying, though. Back in early January, MGM Resorts decided to appoint a new president of this casino. Hope was that the change in leadership could help to turn things around. As of now, this strategy appears to be working.
MGM Springfield isn’t the only casino that experienced a revenue jump last month. Is this a sign that the state’s casino industry is in for a major change?
Plainridge Park Casino Revenue Jumps, Encore’s Drops
Right now, there are three different casinos operating in Massachusetts. As we mentioned earlier, the Encore Boston Harbor has proven to be the most successful of the three. That wasn’t the case in January, though.
Last month, the Plainridge Park Casino saw its gross gaming revenue increase by an astounding $876,913. This comes after seven straight months of revenue decreases. This venue managed to bring in around $11 million in January.
Encore Boston Harbor, however, saw its revenue drop. In January, this casino brought in $49 million. That’s down considerably from December’s $54 million. Wynn Resorts appears to be targeting more of a casual gambler demographic to help make up for these revenue drops.
The casino has also recently chosen to lower its minimum bet limit on several table games. Free parking is also beginning to be offered here. More strategies will be discussed during the company’s upcoming quarterly conference call.
Revenue at MGM Springfield officially jumped last month. Hopefully, this trend continues for the rest of the year.
Stay tuned for more Massachusetts casino news over the next few months!