MGM Springfield Could Soon Go For Sale

MGM Resorts International is having a busy year. In order to generate more revenue for expansion overseas, this company is working to sell some of its major properties. This week, officials within the company announced they were interested in selling the MGM Springfield.

MGM Springfield Casino

This Massachusetts hotel-casino has struggled to perform over the past year. It’s disappointing news for MGM, which has invested major resources into this venue. Today, we’re going to look at why exactly this casino could soon go up for sale.

MGM Resorts International Continues to Sell Property

MGM Resorts is one of the biggest and most profitable casino companies in the world. It owns a huge number of gambling venues around the world, including many in Las Vegas. Some of these MGM-owned properties are located on the Strip including the MGM Grand, Mandalay Bay Hotel & Casino, and The Mirage.

This company is undergoing a major transition right now. Recently, MGM revealed that it was working on selling many of its biggest properties. The idea is to sell properties and invest the money towards expansion throughout the US and abroad.

Just last month, MGM Resorts International announced that it sold Circus Circus Hotel & Casino. This venue was purchased by Phil Ruffin, owner of Treasure Island in Las Vegas. It’s unclear exactly what Ruffin plans to do with his new hotel-casino.

To the surprise of many, MGM Resorts International also sold the world-famous Bellagio Casino-Resort last month. It went to the Blackstone Group for an astounding $4.2 billion, making it the largest property sale in Las Vegas history.

Jim Murren, CEO of MGM Resorts International, recently told the media that additional property sales are likely to take place in the future.

Company Officials Are Now Interested in Selling MGM Springfield

Massachusetts has always been considered a lucrative casino market. Until fairly recently, however, no commercial gambling venues were able to operate here. This is no longer the case and today there are several popular privately owned casinos in Massachusetts.

MGM Springfield opened its doors back in August of 2018. At the time, it was the biggest and most impressive gambling establishment in the state. MGM Resorts International invested nearly $1 billion to open this casino in hopes of dominating the New England gambling market.

For a while, it was successful. MGM Springfield drew in thousands of visitors every month and revenue continued to increase. Recently, however, things have been going downhill for this casino.

In June, Wynn Resorts finally opened its own Massachusetts-based casino, called the Encore Boston Harbor. As the name suggests, this venue is located near Boston and immediately gained tremendous success. It’s so successful, in fact, that it’s captured a significant portion of the Massachusetts gambling market.

MGM Springfield’s revenue has continued to drop since the Encore Boston Harbor opened its doors. Officials are now interested in selling this property.

One plan that’s being discussed is selling the venue and then leasing it back. It’s the same strategy that MGM is using for the Bellagio. Some are skeptical that this plan will work in Massachusetts.

Officials Remain Skeptical of MGM’s Massachusetts Casino Sale

Selling a billion-dollar gambling venue doesn’t come easy. Recently, several politicians in Massachusetts voiced their skepticism over the sale of MGM Springfield. Domenic J. Sarno, Mayor of Springfield, spoke on this issue to the media this week.

“(The city has a) very strong Host Community Agreement with MGM and we will certainly hold MGM to this legally binding agreement,” he said. “Part of this mandates the city and the Massachusetts Gaming Commission must approve any and all adjustments to said agreement.” 

Others believe that a sale could be completed, yet the lease-back process that MGM is looking for might be more difficult.

It’s clear that MGM Resorts is bleeding cash from this venue. State officials recognize this, as well. Hopefully, they’re able to come to an agreement on how to best proceed next.

Stay tuned for more news on MGM Springfield over the next few months!

Massachusetts Casino Revenue Dips in September

Massachusetts is just beginning to embrace the casino industry. There are a few major gambling hubs here, all of which are fiercely competitive with each other. Unfortunately, new reports indicate that Massachusetts casino revenue fell in September. Massachusetts State Symbol

Today, we’ll be looking at the expansion of Massachusetts’ casino market. We will also talk about how much money these casinos managed to bring in last month. Let’s get into it!

More Casinos Begin to Open in Massachusetts

The US gambling industry has never been stronger. Many states around the country are beginning to liberalize their casino gambling laws and are experiencing massive revenue earnings as a result. Several major companies have begun looking at Massachusetts as a lucrative new casino market to break into.

Wynn Resorts is one such company. Back in June, Wynn opened the Encore Boston Harbor casino-resort in Everett, MA. The location was concerning for some; it was previously an unattractive industrial area.

Fortunately, Wynn Resorts’ new casino in Massachusetts has proven to be massively successful. It’s been generating major revenue for the company and state since opening its doors to the public. Encore Boston Harbor was also been outperforming the MGM Springfield gambling venue, which was once the most popular gaming hub in the state.

Many companies are now working to open gambling venues here. Over the next few years, two new venues could open their doors here including the Aquinnah Cliffs Casino and Project First Light Resort & Casino.

Some analysts believe that Massachusetts will become the next major casino destination in the US. Of course, even here gambling revenue can sometimes dip.

Massachusetts Casino Revenue Finally Drops

For a time, it looked like casinos in MA would continue to experience an increase in gambling revenue for the remainder of 2019. Multiple reports have now proven otherwise. Massachusetts casino revenue fell in September and companies are taking notice.

MGM Springfield experienced one of its worst months of the year. Overall gambling revenue fell by 5.1%. The gambling venue brought in $19.8 in September, a pretty significant decrease from the $20.9 million made in August.

Encore Boston Harbor experienced a dip in revenue, as well. According to the Massachusetts Gaming Commission, this casino-resort earned $48.9 million last month. $27 million came from slots and $21.8 million from table games. These revenue earnings also represent a pretty serious decrease from August, where the casino made $52 million.

There’s no real cause for concern, though. Many analysts have pointed out that September is always a less-profitable month than August. Many individuals experience the end of their summer vacations and head back to work.

It’s likely that Massachusetts casino revenue will bounce back this month. This state has never been earning more from its gambling industry and it’s only going to get better.

More Gambling Options Coming to MA

Many lawmakers in Massachusetts are interested in adding even more gambling options to the state. Since May of 2018, when PASPA was struck down, several politicians have called for sports betting to become legal and regulated here. State Representative Brad Hill gave his opinion on the matter to the media a few months ago.

“I want to get us up and running because there is another football season nearly upon us,” he said. “We’re missing a huge opportunity for revenue in this state. Massachusetts likes to gamble, we like our sports, and I should be able, as a citizen, to go bet on a football game. Why is this taking so long? We’re not reinventing the wheel here.”

Many are also calling for online casino gambling to become regulated here. Today, there are a huge number of great online casinos in MA available yet none are monitored by lawmakers in the state. Hope is that in time, this will change.

Massachusetts casino revenue has fallen yet the state still has one of the most lucrative gambling markets in the country. We’ll need to wait and see which new gambling options become available here in the future.

Stay tuned for more Massachusetts gambling news over the next few months!

Trump Doesn’t Support Mashpee Wampanoag Tribe Casino

A local tribe called the Mashpee Wampanoag in Massachusets was finally given federal support with House Bill 312 (HB 312). According to this bill, the tribe will be given two pieces of land that it previously owned. The land will become recognized as sovereign territory of the tribe, and it is an act that many consider noble. This Native American tribe definitely deserved it, and their plan was to build a casino on it that would attract numerous visitors from the area.

However, it could all be in vain, as there is one major obstacle that they need to overcome in order to achieve their goals, and that is the President of the United States of America, Donald Trump. Trump has expressed his opinion on this and is set not to provide support for the Mashpee Wampanoag. In fact, he publicly claimed that the will put a veto on the bill as soon as it reaches the Resolute desk. Some would claim that the reason Donald Trump wants to do that is because the entire cause is supported by one of his major political opponents, Senator Elizabeth Warren. However, the problem is much larger than that.

The main problem with House Bill 312 is that it seeks to give an authorization for land given to a Native American tribe that is not listed in the Indian Reorganization Act of 1934 (IRA). In other words, this tribe was not federally recognized back then, and this could present a major problem for them. The Mashpee Indians managed to receive their designation in 2007, but, according to the US Supreme Court, the federal government cannot allocate land to any Native American tribe that is not recognized by the Indian Reorganization Act.

However, the problem is that there are a lot of cases of exceptions being made in similar situations. In other words, governments managed to bend the rules numerous times, and these exceptions did not have any objections. Furthermore, the land that was planned to be allocated to the tribe is only 312 acres wide. Therefore, it seems like there is too much fuss going on about what seems to be a very minor case of concession.

So what made Trump so interested in (opposing) this case? The problem is that the tribe plans on building a casino that would feature 3,000 slots, 150 table games, and a total of three hotels. Their plan is to join forces with Genting Group in order to complete their casino.

Now, Trump has a lot of powerful friends, especially in the casino industry, and it is very likely that some of them actually persuaded the President not to support this cause. The word is on the street that one of the main people to affect Trump is actually Matt Schlapp, who is a lobbyist and a presidential advisor. Schlapp is also closely associated with Twin River Worldwide Holdings, which is a company that, among others, also operates the casinos located in Rhode Island. In fact, they are the sole operator of licensed casinos in this area, with Lincoln casino being one of them. Now, the problem here is that Lincoln is only a 40 minutes ride from the area which is supposed to be granted to the Indian tribe.

At the moment, Trump seems to have succeeded with his intentions as the Democrats in the House made a decision to postpone voting on the bill so as to come up with a different plan that would allow them to proceed with the bill.