Record-Setting 2022 Boosted By $91M In May Revenue At Massachusetts Casinos

In May, the three casinos in Massachusetts experienced a slight decrease in gambling revenue, resulting in a total of $91 million in gross gaming revenue (GGR).

In the previous month, the revenue experienced a decline compared to April and March. March had achieved an all-time high in Massachusetts with $102 million in GGR. The state’s casinos have accumulated a remarkable $460 million in GGR during the initial five months of this year, displaying a 16% increase from the previous year’s $385 million.

In the Commonwealth of Massachusetts, MGM Springfield and Encore Boston Harbor function as Category 1 establishments known as “resort casinos” and are subject to a 25% tax rate on their Gross Gaming Revenue (GGR). On the other hand, Plainridge Park Casino operates as a Category 2 “slots parlor” and pays a higher tax rate of 49% on its GGR. In the month of May, the total tax contribution made to the commonwealth by these casinos amounted to $25.5 million.

Encore Boston Harbor tops the list

With earnings of $58 million in May, Encore Boston Harbor unquestionably dominates the list of commercial casinos. As the largest non-tribal-owned casino in the United States, it proudly holds this position. Additionally, it is noteworthy that Encore is the biggest commercial casino, excluding Las Vegas, to be awarded Forbes’ prestigious five-star status.

Encore, the latest addition to the casinos in MA, commenced operations in 2019 and ran successfully for nine months until COVID-19 forced it to close for a duration of three months. However, despite this setback, the business remained resilient, managing to regain its pre-COVID numbers within a year.

Starting from July 2021, it has consistently surpassed pre-COVID-19 GGR with its revenue figures. The highest revenue for a single month was achieved in March, reaching $64.86 million.

In the month of May, Encore’s tax payment amounted to $14.5 million.

MGM Springfield holds steady

MGM Springfield managed to maintain its stronger April performance compared to Encore. The Gross Gaming Revenue (GGR) for May amounted to $21.2 million. Nevertheless, MGM, despite its establishment in August 2018, has yet to experience a year as robust as 2019.

The year-to-date gross gaming revenue (GGR) for 2022 stands at $106 million, which reflects a 4.5% decrease compared to the January-May total of $111 million in 2019.

Last month, MGM Springfield contributed $5.3 million towards taxes.

Plainridge Park struggles to keep pace

Plainridge Park, a casino that solely provides slots and horse racing, has faced challenges in matching the success of nearby casinos, notably Twin River Casino in Rhode Island. Twin River, located merely 12 miles away, boasts a wider range of offerings, including slots, table games, a sportsbook, and even a hotel.

After its establishment in 2015, Plainridge Park experienced its most successful year in 2018. During the period from January to May in 2018, the Gross Gaming Revenue (GGR) reached $71.4 million. However, in 2022, the GGR for the same timeframe has declined by 18% to $58.2 million. In May alone, the GGR was $11.7 million. Initially, Plainridge Park faced a slow start to the year, but it has managed to recover since March. Nevertheless, among the three commercial casinos in Massachusetts, Plainridge Park has experienced the biggest drop in comparison to its 2021 figures.

In May, Plainridge contributed $5.7 million in taxes to the commonwealth.

Massachusetts Casino GGR

Casino	May 2022	April 2022	May 2021
Encore Boston Harbor	$58 million	$63.7 million	$52.9 million
MGM Springfield	$21.1 million	$22.5 million	$21.2 million
Plainridge Park	$11.7 million	$12.9 million	$12.49 million
Approximate Total	$91 million	$99 million	$87 million

MA’s gambling unfazed by nationwide economic woes

Despite the economic challenges of inflation, increasing gas prices, and supply chain shortages affecting the nation, Massachusetts’ robust gambling community seems to be resilient. The state is on track for a record-breaking year, indicating that the gaming industry is not significantly impacted by these factors.

Plainridge Park stands out in this situation. This is understandable considering the expensive gas prices, given that the distance for a round trip from Boston to Plainville exceeds 70 miles. Moreover, there are no commuter rail services available in the vicinity.

Additionally, as stated earlier, the presence of Twin Rivers poses a competitive challenge. Although proposals to introduce table games at Plainridge have been put forward, they are still struggling to gain momentum.