Back in 2018, MGM Resorts International opened a brand new casino-resort in Springfield, Massachusetts. This venue, called MGM Springfield, has struggled to generate revenue ever since. MGM Resorts has made some major changes over the years, and hope is that MGM Springfield’s new leaders are able to turn things around.
There’s a lot going on with MGM Resorts right now. This company is currently involved in several major deals around the country. Today, we’re going to look at what exactly is happening with MGM’s major property in Massachusetts.
Let’s get into it!
MGM’s MA Property has Been a Major Disappointment
For many years, lawmakers in Massachusetts were against the gambling industry. The state government made it extremely difficult for any gambling operators to run in this state. Even Native American tribes, which are able to operate casinos in almost every state, are finding it extremely hard to open casinos in MA.
In 2011, things began to change. That year, lawmakers here officially passed the Expanded Gaming Act, paving the way for three different commercial casinos to operate in the state. Since that time, two major casinos have opened.
As we already mentioned, MGM Resorts International opened MGM Springfield in 2018. The next year, Wynn Resorts officially opened the Encore Boston Harbor. Before MGM opened its gambling venue, Massachusetts was thought to be one of the most lucrative new casino markets in the country.
Things haven’t been running smoothly for this company, though. Since opening its doors to the public, this new property has struggled to attract new gamblers. The opening of the Encore Boston Harbor made things even worse. This venue has become the most popular casinos in the state, stealing many gamblers away from MGM Springfield.
Company officials desperately want to make a change. This week, they announced that the leadership of the Massachusetts gambling venue was changing.
MGM Springfield’s New Leaders Need to Make a Change
MGM Resorts International is one of the largest and most successful casino companies in the country. It owns a huge number of major properties around the world. For many analysts, it was a huge surprise to see this company’s gambling venue in MA struggle.
This week, company officials announced MGM Springfield’s new leaders. A decision was made to bring in new faces here. Mike Mathis has officially been removed as president of the casino-resort. Chris Kelley is now taking his place.
Mike Fenton, a City Councilor and member of the Casino Oversight Committee, talked about this change to the media this week.
“My first question was is there anything wrong, is there anything to be concerned about with the Springfield project, and the answer to both questions was no,” he said. “When they vote for the casino referendum, they wanted to see the south end…not just the casino, but outside the casino, revitalized. And that does not happen overnight but I continue to be very encouraged by the progress there.”
For now, the city of Springfield will continue to receive money from MGM’s casino-resort. If things don’t improve here, however, this gambling venue may eventually be forced to close its doors.
Property Sales Continue in Las Vegas
The change in MGM Springfield’s new leaders is one of many announcements from MGM Resorts International. Over the past few months, the company has sold some of its biggest and most profitable gambling venues in Las Vegas. This includes the Bellagio, MGM Grand, and Mandalay Bay.
This all comes as part of a new cost-cutting strategy. MGM Resorts is focused heavily on expanding overseas right now. One of the main ways to achieve this goal is to earn money through casino-resort sales.
The Las Vegas sales aren’t exactly cut and dry, though. MGM Resorts is choosing to lease back many of the properties that it’s sold. The company is paying $245 million per year to retain control of the Bellagio, for example.
There’s a chance that MGM Resorts will choose to sell its casino-resort in Springfield. Before this happens, though, the company has chosen to switch up MGM Springfield’s new leaders. We’ll need to wait and see how this affects the property’s revenue earnings.
It’s an interesting time for MGM Resorts right now. Make sure to stay tuned for more news on the company over the next few months!