MGM Springfield, a casino resort opened by MGM Resorts in Massachusetts last August, has yet to rise to the company’s expectations. Gross gaming revenue (GGR) is substantially lower than predicted, with the venue’s casino operations having only generated about half of what was anticipated.
According to the Massachusetts Gaming Commission (MGC), MGM Springfield took in $22.28 million in May for a 2.14% month-over-month increase. That’s a nice addition, but it isn’t close to what MGM had expected. Across the first ten months of operations, the venue has reported GGR of $212.5 million and had predicted $416 million in its first year when it submitted its bid for the casino license.
The underachievement isn’t deterring MGM Springfield President Michael Mathis, who is a half-glass-full type of guy, at least in public. He told the news outlet The Republican, “We continue to be pleased with our performance. We’re capturing market share and growing loyalty.” This, despite the property coming up $200 million short of its projections.
MGM Springfield should have been able to perform better – it was the only table games operator in the state, a position it held since opening. However, competition is about to increase with the opening of Encore Boston Harbor, a Wynn Resorts property, and MGM Springfield is going to have to fight for customers. Encore is expected to open June 23. Wynn had been reportedly discussing a sale of the property to MGM, but those talks fizzled.
More competition will come via a satellite casino in East Windsor, Connecticut. When that venue opens, it will be a little more than an hour away from MGM Springfield, drawing away some of the local gamblers. That casino is coming thanks to the Mashantucket Pequot and Mohegan Indian tribes, which have been given permission to launch the venue by Connecticut authorities. It is expected to carry a price tag of about $300 million and the tribes are currently looking for investments to fund construction.
MGM Springfield’s numbers, and the company’s reputation, are suffering more damage after the MGC fined the property $100,000 last month. That penalty came after the venue was found to have served alcohol to underage patrons, as well as allowing them to gamble.
