MGM Springfield Posts Positive September With $27 Million In Revenue
MGM Springfield is being hailed a hit after posting close to $27 million in gross gaming revenue (GGR) in its first full month of operations.
But those numbers may be declining already.
The Massachusetts Gaming Commission released monthly revenue figures for MGM Springfield Monday. According to the commission, MGM reported $26,952,096.39 in GGR in September. The figures include more than $18 million from slot machines and $8 million from table games.
MGM Springfield President and Chief Operating Officer Michael Mathis told the The Republican local newspaper MGM is happy with the early returns:
“We are pleased with the solid visitor volume we experienced in September, our first full month of operations. Our hotel and restaurants continue to reflect impressive numbers of guests eager to experience what our new resort has to offer. Visitors from across the region are responding well to the breadth of our overall entertainment strategy.”
MGM Springfield and Plainridge Park make it $41 million combined
The Massachusetts Gaming Commission also released monthly revenue figures for Plainridge Park Casino. The Penn National Gaming slots-only facility posted a little over $14 million in GGR. This helped the pair of Massachusetts casinos generate a combined $41 million in GGR in September.
However, Plainridge actually paid more in taxes than MGM.
As a category two slots facility, Plainridge Park Casino is taxed at a rate of 49 percent of GGR. As a result, it paid a little more than $7 million in gaming taxes in September.
MGM Springfield is a category one resort-casino, and is taxed at a rate of 25 percent of GGR. As a result, it paid just $6.7 million in taxes on gaming revenue in September.
MGM’s own projections have it generating approximately $418 million in GGR in its first year of operations. However, the close to $27 million in September revenue it reported is well below the almost $35 million a month the property needs to generate in order to meet projections.
Regardless, Mathis said MGM Springfield is meeting early expectations:
“Our financial performance is on track with our expectations, and we remain grateful for the ongoing support of the Springfield community.”
MGM daily average declines
The property averaged close to $1.2 million a day in GGR over those eight days in August. However, things are clearly slowing down from the August opening. MGM averaged closer to $900,000 a day in GGR over the 30 days in September.
MGM Springfield features a huge variety of dining, drinking and entertainment options. The 125,000-square-foot casino on the property includes 2,550 slot machines and 120 table games, plus a 23-table poker room.
Photo courtesy of MGM Springfield