They say it isn’t good to put all of your eggs in one basket. That hasn’t stopped MGM Springfield from betting on the legalization of sports betting to play a significant role in their growth in 2020.
Right now, the casino is one of a number of groups that are lobbying the state legislature to legalize sports gambling within the state of Massachusetts. The casino reported lackluster revenues in 2019 which led to former President Michael Mathis and vice president and chief financial officer Courtney Wenlender stepping away from the company in January.
According to reports, new president Chris Kelley is concerned about stagnant gambling revenue. Employment at the MGM has remained at 2500, which is 500 fewer than what the casino had promised when they first petitioned for a gaming license.
Those numbers may take an even bigger hit should the Massachusetts state legislature approve the opening of a new casino within the state. This idea is being strongly considered after the Mashpee Wampanoag Indian tribe proposed building a casino. In addition, the Aquinnah Wampanoag tribe is looking to add a gambling hall on Martha’s Vineyard.
MGM officials hope sports betting will entice new visitors to come to the casino. It would make them more competitive with neighboring states that already allow sports betting at their facilities (Rhode Island, New Hampshire, and New York). In fact, New York has been quite active in its advertising campaigns, trying to lure residents of Massachusetts to their casinos.
MGM Springfield reported gross gambling revenue in December of last year of just $18.9 million, the lowest monthly total since it opened 16 months ago.
This followed a disappointing November where the casino raised just $19.9 million, the second-lowest monthly total since the September 2018 grand opening. It is already expected that revenues for January are likely to be on the decline as well.
What is making matters worse is that revenues at the Encore Boston Harbor in Everett increased in December, as they reported revenue of $54 million, the highest single-month total since the casino opened last June.
