MGM Springfield Casino Earns $27M During in First Month

MGM Springfield Casino Earns $27M During in First Month

On August 24th, the state of Massachusetts’s first commercial casino operation opened with great fanfare, and during its first eight days of business MGM Springfield generated an impressive $9.5 million in revenue. Recently, the Massachusetts Gaming Commission subsequently released the casino’s financial results for its first full month of operation, revealing that the establishment collected a total of $26.95 million from punters in September.

From that total, slot machines attracted $190 million in wagers, with its hold of 9.5% resulting in $18 million in gross revenues, while table games, such as blackjack and roulette, contributed a further $8.8 million to the overall result. Massachusetts levels a 25% tax rate on the casino’s gross gambling revenues, and in September it collected $6.7 million from the property by way of state taxes.

Less Than Expected

While that figure might seem solid, it is still seen as being on the disappointing side by some analysts as it falls well short of the weekly benchmark set at the end of August. Furthermore, MGM had previously predicted that the $960-million casino property’s annual gaming revenue would reach $418 million during its initial year of operations, or around $35 million per month, while September’s result was almost $8 million below that amount.

MGM Springfield’s performance during its full opening month also compares poorly in comparison with that of another of its East Coast neighbors, MGM National Harbor in Maryland, which collected $41.9 million in December 2016, even though it was only open for three weeks that month. Furthermore, Maryland’s population of 6 million people is around 1 million less than The Bay State, and its casino market is also considerably more saturated with MGM National Harbor competing against five other Maryland casinos. MGM Springfield, by comparison, has just one state competitor, namely Plainridge Park, a slots-only racino which last month generated $14 million from gambling.

Business on Track?

Needless to say, business will need to pick up if MGM’s initial forecast for its 2,550 slots, 120 table games, and 23 table poker room operation is to be achieved. Nevertheless, the property is more than just a gaming destination, and boasts a 250 bedroom hotel, as well as numerous restaurants, bars and other non-gaming facilities across its 14-acres.

September’s results do not include revenues from these other services, either, and commenting upon the casino-resorts overall performance, President of MGM Springfield Mike Mathis said that his company was pleased with the solid visitor numbers experienced last month, stating:

“Our financial performance is on track with our expectations, and we remain grateful for the ongoing support of the Springfield community.”

2k Uber Trips per Week

There are numerous other benefits for the local community from MGM Springfield’s opening. One of them is the hiring of more than 3,000 employees, of which more than a third are Springfield residents. Another is a huge increase in business for local Uber drivers, who have made around 2,000 trips a week to the property since the end of August.

According to reports, the majority of these trips are between the hours of 9 p.m. and 4 a.m., with the most popular destinations being to other Springfield hotels, to Springfield Union Station (train and bus), and to Bradley International Airport in Connecticut. This is obviously immensely positive news, indicating that people are using planes, trains and other public transportation in order to visit the venue located in the city of Springfield.

MGM Resorts and Uber have a corporate partnership arrangement, and on MGM’s website it offers first time Uber users a discount of up to $20 on their first trip. The casino-resort even features a pickup and drop-off zone on Level 1 of its parking garage, and as Mary Kate Depamphilis, of MADD Massachusetts explains:

“As visitors flock to the brand-new MGM Springfield, making ridesharing services as convenient as possible is helping to keep Springfield streets safer for everyone. We encourage all visitors to take advantage of safe options like Uber when enjoying a night out at MGM.”