MGM Springfield $165M Short On First-Year Revenue Goal, Blames Loyalty To Other Casinos
Western Massachusetts’ only casino is well short of its pre-opening financial projections, but its leader is still calling it a success story.
MGM made $253M in gross gaming revenue during its first 49 weeks, or $165M behind the $418M it projected it would make on the Springfield casino in its first year. Despite the sluggish debut and a drop in employment from when it first opened, MGM Springfield President Michael Mathis says the resort is moving forward and taking into account stronger-than-expected loyalty to nearby Connecticut casinos.
Mohegan Sun and Foxwoods are about 70 miles from MGM Springfield, the Boston Globe reports.
“This market has some really strong competitors that have been in the market for 20-plus years,” Mathis said to the Globe. “We may have underestimated that level of loyalty, and what it would take for those customers to give us a shot.”
The Springfield casino employs 2,300 today, down about 750 from its opening day in summer 2018. Mathis said 40% of the resort’s employees live in Springfield. He also claimed the resort has brought 6 million people to downtown Springfield since it first opened.
But the project still faces headwinds. Encore Boston Harbor opened at the end of June and made $48.6M in gross gaming revenue during its first month. MGM Springfield made $20.4M. Table game revenue at MGM Springfield dropped from a pre-Encore opening $6.2M in May to $4.9M in July.