Disappointing figures
Since MGM Springfield’s casino opened its doors in late August 2018, it has performed well. However, the venue has been unable to meet the projected gaming revenue numbers set during the first-year projections.
MGM estimated the venue would generate $418m in gross gaming revenues within its first year. The casino has fallen well short of that number, earning less than two-thirds of the expected amount.
During its first year of operation, ranging from August 24 2018 until August 31 2019, the property earned $273.8m. MGM Resorts told regulators the new casino would yield an average of $34.8m per month. Yet, the casino was only able to generate an average of $22m monthly.
MGM estimated the venue would generate $418m in gross gaming revenues within its first year
Of the $273.8m generated from its first year in operation, $68.45m was paid in state taxes. ?
August details
August gaming revenue numbers increased for the property when compared to July, at 2.7%. However, gross gaming revenues continued to be on the low end at $20,966,172 when compared to the higher monthly estimates.
According to the president of MGM Springfield, Michael Mathis, the casino focused on having a solid August. The venue’s casino recorded close to 500,000 visitors for the month. The property had an increase in visitors due to four sold-out Aerosmith shows. Large crowds at the comedy club and outdoor concert venue also helped to improve footfall. Mathis said:
We continue to be pleased with how well we’re being received in the market.”
Mathis pointed out that as the second year begins for the casino, MGM is looking forward to opportunities to reaffirm their commitment to the community and the Commonwealth. The property has a full calendar of events planned along with casino promotions.
Competitors results
The Encore Boston Harbor and Plainridge Park Casino are competitors of the MGM Springfield. Encore Boston Harbor reported just over $52m in gross gaming revenue for August. This was a solid increase from the $48.5m earned in July.
For Plainridge Park, the casino offers only slot games. Revenues from the machines generated over $12m for August.
MGM Springfield officials told regulators and investors that it is taking time for the casino to ‘ramp-up’ and be as busy as expected. August totals benefited from the calendar having five weekends instead of the typical four.