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MGM Massachusetts Reports Decline in Gaming Revenue
December 20, 2018 Alex Hoffmann
According to the latest financial report of MGM Resorts in Massachusetts that was published on Monday, December 17th, the numbers aren’t as near as convincing when it comes to gaming revenues.
The property has reported a decline for the second time in a two-month period, which is basically the same scenario in Connecticut, where competitors also declared a negative cash flow.
Down by Almost a Million
As reported by the Massachusetts Gaming Commission, the state’s leading casino operator produced $34.1 million in November 2018, which is significantly less than its October revenue of $35.5 million.
Comparatively, the company’s venue in Springfield, which launched in August thanks to the $960 million investment, reached a revenue of only $21.25 million; again, down from $22.2 in October or even worse, $27 million in September.
Furthermore, Penn National Gaming’s casino, Plainridge Park, managed to produce $12.85 million, down for almost $800,000 as compared with proceeds in October.
Analysis also revealed that MGM Springfield had earned $9.5 million in the first week after the grand opening, ing the earlier statistics that suggested staggering $418m over the first 12 months.
However, the resort obtained only $80 million so far, which is far less than projected in its first three or four months this year.
Mohegan and Foxwoods Also Falling Behind
The report also reads that Foxwoods Resort Casino (owned and operated by the Mashantucket Pequot Tribal Nation) reported a drop in November, as it generated merely $35.3 million which is down by 8% comparing to 2017.
More importantly, the establishment has kept its financial reports pretty confidential, since its last year-on-year news dates back to May…
Accordingly, another reputable land-based casino, under the ownership of Mohegan Gaming & Entertainment, stated that its slots revenue has fallen from $47.5 million to $44m… The tribal operators issued a statement about the declines:
“We expected to take a hit once our big shiny competitor opened across the state line…”
Nevertheless, president of Mohegan Sun, Ray Pineault, said that “the declines are less than anticipated” and that the management is “not at all disappointed.”
It remains to see if the months will make a change in both states, and according to Michael Mathis, MGM Springfield president, the brand is still on an upward trajectory:
“As we move into the holiday season, we continue to be pleased with our overall performance at MGM Springfield. November was another solid month for us as our restaurants, bars, lounges, casino and hotel experienced strong volumes of guests.”
Source:
“MGM’s Massachusetts casino revenue falls for second month”, Peter Amsel, calvinayre.com, December 18, 2018.
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Not sure what’s Massachusetts’ and Connecticut’s stand on gambling but I think it’s quite normal for their casinos to experience a slight drop in revenue during this time of the year, mainly because of the holidays.