During its first week of operation, MGM Springfield saw huge attendance in August and generated $9.5 million in gambling revenue, according to the state regulator’s latest report. Despite being seen as the main competition of Mohegan Sun and Foxwoods, Massachusetts’ new gaming facility poses little threat to Connecticut casinos, at least for now.
On Monday, the Massachusetts Gaming Commission released its monthly revenue report, which reveals that the new casino in Springfield grossed $9.5 million from gambling during its first week. The 125,000-square-foot facility that cost MGM Resorts International an investment of nearly $1 billion had the city in anticipation for a long time and went for an early opening on August 23. During the first week of operation, it reported daily attendance of around 25,000 people on weekdays, while on weekend days, it drew in 50,000 visitors. For the opening weekend, the figures show 150,000 visitors, much more than initial projections.
The gross revenue consists of $7.3 million generated from slots and $2.1 million from gaming tables. Meanwhile, the two large casinos in Southeastern Connecticut reported slight declines in their August earnings compared to the same period last month.
Mohegan Sun, which has more than 4,500 slot machines had a handle of $635.5 million in August. The handle is a widely used term that refers to the total amount of bets before the payout of prizes. The amount the casino kept or won, was $53.3 million, down 1.1 percent from the winnings it generated in August 2017.
The Mashantucket Pequot Tribe’s Foxwoods Resort reported a handle of $518.9 million last month, less than a percent decrease from the figures in 2017. The year-on-year decline in its win for the month was more significant, around 1.6 percent, to $41.4 million. The casino hosts a little over 4,150 slot machines. The State of Connecticut does not tax winnings from gaming tables and the total amount of funds it generated from the two casinos in August was around $24 million – $13.3 million from the Mohegan Sun and another $10.6 million from Foxwoods.
These figures, however, are for the entire month of August. Since MGM Springfield was operational from August 23, we should look at the numbers for the last week of the month for two Connecticut casinos. Over the eight days from August 23 until August 31, Mohegan Sun generated $14.3 million in slots win, while Foxwoods kept $10.2 million in winnings. In comparison, MGM Springfield won $7.3 million from slot machines.
Despite the increased interest for the latest MGM casino in Massachusetts and the surprisingly high attendance, it could not reach its well-established rivals in terms of revenue. According to most experts, higher winnings are to be expected from a brand new casino, especially from a facility that has been so widely advertised in the area. Still, the revenue report from the Massachusetts Gaming Commission reveals that MGM Springfield’s gambling win is smaller than Connecticut revenues.
Massachusetts Rival Saw Revenue Growth in August
The revenue report by the Massachusetts regulator also shows the winnings generated from the other MGM Springfield competitor within the state. Plainridge Park Casino kept $15.3 million from slot machines in August. This was a slight growth in revenue from the previous month when it generated $15.1 million. The facility offers horse racing which is also subject to a tax. As a result, the state collected approximately $7.5 million in taxes.
In comparison, MGM Springfield, which is around 80 miles west of Plainridge Park Casino in Plainville, forwarded only $2.4 million to the state. The gaming taxes in Massachusetts are 25 percent from the gross gaming revenue of casino operators. This includes the winnings operators generate from both slot machines and gaming tables.
