MGM Springfield calls first year a success

While revenues for the first year are significantly below its own predictions, Mathis said Monday that the casino is doing fine, and he is bullish about the coming year.

“I think there were a lot of naysayers that first said we would never build this; then they said people wouldn’t come because it’s Springfield,” Mathis said during a meeting with reporters “And a year later, 6 million visitors later, we’re knocking the cover off the ball on many, many facets of it.”

The casino opened Aug. 24, 2018. He cited examples of success as bringing in “world class” entertainment" to the downtown, hiring approximately 2,500 employees, and that about 40 percent of its workforce is from Springfield compared to its goal of 35 percent.

In addition, the casino has not caused the traffic congestion and crime that some of the naysayers predicted, Mathis said. "It just hasn't come to fruition," Mathis said.

For the month of July, MGM Springfield’s gross gaming revenue was $20.4 million, a 2.23 percent increase over gaming revenues in June. Since its opening, it has not come close to its expectations of raising $418 million in annual gross gaming revenues during its first full year of operation — or $34.8 million per month.

Its highest gross gaming revenues was during its first full month of operations, September of 2018, when it took in nearly $27 million.
Total gaming revenue and tax revenue are an important part of the casino, but "not the only part," Mathis said. The casino is providing jobs, and local jobs, as well as economic development spin-offs, he said.

MGM Springfield’s revenues increased in July despite the much larger Encore Boston Harbor casino having its first full month of operations. The Encore casino in Everett had $48.6 million in gross gaming revenues in July.

Mathis said the revenue predictions for MGM occurred well ahead of the opening, and the market began to constrict during the construction phase. While he believes predictions were realistic, MGM Springfield has stressed that it expected a three-year ramp-up, he said.

The market has some really strong competitors that have been in operation for many years, Mathis said. MGM Springfield, in luring people to the Springfield casino, has been "really successful in getting return trips."

"It's just a matter of when we are going to be able to get there," Mathis said, regarding revenues. "It's going to take some time in a market like this. If you look at any other facility in the market, there's always a ramp-up."

Regarding competition, Mathis said he believes "we can all co-exist," and he wishes the other casinos well. MGM continues to work on branding the casino and Springfield itself, he said.

The casino is making a number of changes, such as adding bars including a VIP Lounge, adding new amenities, "and we will continue to get smarter about it and chip away into that number," Mathis said. The casino is attracting thousands of new customers every week, benefiting MGM and the community, he said.