According to the latest official release by the MGM Springfield boos, the company’s officials remain optimistic and confident in solving problems despite growing financial issues that this company is currently facing. The boos of the multi-million worth MGM Springfield gaming entertainment facility has asserted that this city-center gaming giant is finally heading in the right direction even though its first-year gaming revenue has been extremely disappointing.
As reported by The Boston Globe newspaper on Monday, the MGM Springfield CEO and President Michael Mathis used a question and answer session in order to discount emerging criticism which surrounds the facility’s disappointing and less than stellar gross gaming revenue and overall financial performance. This Springfield-based facility opened its doors in August of 2018 and the company’s officials had very ambitious plans and very ambitious forecasts.
The facility is owned and operated by the MGM Resorts International company headquartered in Las Vegas. In the beginning, the company’s officials had hoped to generate gross gaming revenues of at least $400 million in the first year of operating. However, as reported by The Boston Globe newspaper on Monday, the property’s casino floor which includes around two thousand and five hundred slot games and around one hundred and forty table games generated only around $250 million which is far away from what the officials had hoped to generate initially while its figure for July is only around $20 million.
Facing Serious Competition from the Foxwoods and Mohegan Sun
The same newspaper which reported of the facility’s more than disappointing gross gaming revenues also revealed that MGM Springfield has also faced some serious competition in this area which definitely increased its financial loss. The two biggest MGM Springfield rivals are the Foxwoods Resort Casino and Mohegan Sun which are both tribal-owned entertainment facilities situated around seventy miles from MGM Springfield in the state of Connecticut.
Following the news about the company’s emerging financial struggles, its CEO and President, Mr. Mathis stated that the company’s officials have probably underestimated their biggest rivals at the very beginning. He also added that they have probably underestimated what it actually takes to entice customers and visitors to give MGM Springfield a shot especially as both of the company’s biggest rivals have been present in the area for quite some time, so they already have loyal fan bases which come back regularly.
MGM Springfield Facing Some New Competition
The market definitely has some strong competition and is getting even stronger with some new rivals coming into the game. To make financial issues for the company even worse, the Springfield-based venue will have to deal with another competition as the Encore Boston Harbor venue is generating record gaming revenues. As it was reported, Encore Boston Harbor has generated around $65 million in gross gaming revenues which is its record.
What is even more, the venue has also generated almost $49 in gaming revenues in July. This Wynn Resorts Limited-owned and operated entertainment facility opened in June of 2018. It has a larger casino space, so it hosts a larger selection of gaming tables and slot machines. Despite some new competition arriving, the MGM Springfield CEO and President Mr. Mathis said to The Boston Globe newspaper that the company’s officials strongly believe that the Springfield-based MGM finally is on a great route especially in the months to come when the venue will host a variety of events with well-known guests and entertainers.