Massachusetts New Casino Industry Off To Positive Start

On June 24th, 2015, Massachusetts opened its very first casino, Plainridge Park, and by the end of July the gambling venue generated $18.1 million in gross gambling revenues, representing a solid start for the state’s nascent gambling market. However, the Massachusetts Gaming Commission has now released August’s results, which shows revenues trailing off by around 19% to $15 million.
The $250-million Plainridge Park Casino offers 1,250 slots, as well as electronic tables featuring popular card games such as blackjack. According to Massachusetts authorities, the venue is projected to generate around $200 million in revenues by the end of its first year in business, of which 49 percent subsequently goes toward state coffers by way of taxes.
Furthermore, the Bay State will be anticipating further rewards after its other three casinos projects are completed. These include the $800-million MGM casino in Springfield; the $1.7-billion Wynn Resorts in Everett; and a fourth casino possibly in Brockton.
Massachusetts may already have plenty to celebrate following the successful launch of its casino industry, but the same cannot be said for the bordering states of Rhode Island and Connecticut, both of whom saw revenues declines last month. Needless to say, their bottom lines were negatively impacted by the increased competition from their northern neighbor, and already the two states have started contingency measures to protect their businesses. In Rhode Island this includes placing more table games inside its casinos, as well as drawing up plans for a new casino hotel, while in Connecticut, the separate Indian tribe owners of the Foxwoods and Mohegan Sun aim to construct a jointly-run casino along the Massachusetts border, near to where the state is planning to build its MGM Springfield casino. As Mashantucket Pequot Tribal Council Chairman, Rodney Butler, explained in a statement:
“This agreement marks a new chapter in the history between our sovereign nations. While our past may have been marked by conflict and competition, our present and future will be defined by cooperation. With a united front, we can and will defend the thousands of jobs that are under attack.”
Nevertheless, MGM Resorts International is not pleased and has now mounted a legal challenge in the federal district court in New Haven aimed at blocking the potential development.