MGM Springfield Sees Lowest Monthly Revenues Yet in January, Earning Just $19.7M
Posted on: February 17, 2019, 02:00h.
Last updated on: February 16, 2019, 09:51h.
MGM Springfield earned just $19.7 million in gross gambling revenue in January, the lowest figure yet for the casino since it opened in August 2018.
That number marked a nearly nine percent drop from December, and brings the total gross revenue for the resort to over $121 million since opening.
MGM Springfield Falling Short of Expectations
That’s a number that suggests the casino might come in well below the initial estimates it gave to the Massachusetts Gaming Commission. MGM Springfield estimated that it would bring in $418 million in revenue during its first year in operation, which would require it to win nearly $35 million per month from visitors.
In a statement, MGM Springfield President and COO Michael Mathis tried to look past the hard numbers to find positives in the resort and its performance.
“As we enter our sixth month of operation, we continue to gain valuable insights on the market,” Mathis said in the statement. “We remain grateful for the ongoing support of the New England region and look forward to an exciting 2019 bringing more great shows to downtown and introducing legalized sports betting for the first time in the Commonwealth.”
The numbers, released by the Gaming Commission on Friday, come just days after MGM Resorts International CEO James Murren said that gambling at the resort was “slower, but ramping” in an earnings call with investors.
MGM Springfield is one of two gambling facilities that has opened in the state of Massachusetts. The commission also reported revenues for the Plainridge Park Casino, with the slots parlor recording $12 million in January revenue. That’s down about $2 million from December, but almost identical to what Plainridge earned during January in both 2018 and 2017, suggesting that business is fairly stable.
Northeastern Casino Market Shows Signs of Saturation
The new casino is trying to get off the ground in an already competitive northeastern gambling marketplace. Connecticut, Rhode Island, and New York all also have multiple casino facilities, many of which have also been struggling to hit their revenue targets in a regional market that may already be saturated.
Connecticut’s casinos in particular have been struggling to retain business in recent years, a trend that seems to be continuing in 2019.
In January, Foxwoods reported $31 million in slots revenue, the lowest single-month total in 25 years for the Native American resort. Meanwhile, Mohegan Sun earned $40.7 million from slots during the month, which was its lowest total since 2001. Both Connecticut resorts have seen seven straight months of year-over-year declines in slots revenue.
According to a report by The Day, Mashantucket Pequot tribal chairman Rodney Butler said that the decline was due to a combination of the introduction of sports betting in Rhode Island and poor weather during January.
Overall revenues aren’t available for the tribal casinos in Connecticut, as table games revenue is only released quarterly since those winnings aren’t taxed by the state.
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