MGM has just replaced its head of casino in Springfield Massachusetts, Mike Mathis, with Chris Kelley after flagging revenue sales, according to the Boston Globe.
The casinos gaming revenues in December came in below $19 million for the first time in 16 months. Its best showing was the first full month of operation, September 2018, when it reached nearly $27 million in revenues, but since then it has been averaging around $20 million a month, far below projections.
But its major competitor the Encore Boston Harbour casino in Everett (previously Wynn Encore) had its best month with $54 million in revenues.
MGM Springfield covers 14 acres and consists of three blocks within in heart of downtown Springfield, and cost nearly $1 billion to build.
MGM CEO Jim Murren is now going to focus on a wider entertainment experience to pull in the customers. They already put on a Red Sox event that sold out with 7,200 in attendance. Hitherto the MGM casino has focussed too heavily on gambling.
The data tells us that Encore Boston drives more money from tables than slots whereas the opposite is true of Springfield.
It seems people go to Encore and stay longer; at MGM Springfield they are what is known as day-hoppers. The day hoppers account for 70 percent of MGM gaming revenues.
Although Encore is in every sense a smart operation it benefits because of its closer proximity to Boston, and that is where the money is.
In the meantime, the Massachusetts Gaming Commission is holding off on the grant of a third casino license in the southern corner of the state.