MGM Springfield analyses first year of operations

The president of MGM Springfield called the first year of operations successful, despite falling short of estimations.

US.- MGM Springfield is just four days away from its one-year anniversary. Mike Mathis, President and COO of MGM Springfield talked to the media on Monday and said that the casino resort has managed to meet the company’s expectations.

The initial revenue estimations for the MGM Springfield casino were higher than what it actually achieved. Despite the financial results, Mathis said that the casino is performing well. “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. And a year later, 6 million visitors later, we’re knocking the cover off the ball on many, many facets of it.”

Last month, MGM Springfield generated US$20.4 million in gross gaming revenue (GGR), which represents a 2.23% increase over the previous month. However, the overall results fall short of the US$418 million expected in annual gross gaming revenues in the first year of operations. The estimations also said that the casino would raise US$34.8 million per month.

Mathis highlighted that total gaming revenue and tax revenue are important for the casino. However, he says they are not the only things to consider. He added that MGM Springfield is providing stable jobs and economic development spin-offs.

The CEO believes they’ll eventually reach their revenue goals

In regards to revenues, Mathis said that it’s a matter of time to finally reach their goal. “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.”

The opening of Encore Boston Harbor in neighbouring Massachusetts scared the local industry, but during the casino’s first full month of operations, it generated US$48.6 million and did not affect MGM Springfield, which actually increased its numbers in July.