The December gaming revenue numbers are in. MGM Springfield generated $21.6 million in the month of December posting an increase of $335,311 over November. $14,255,000 was generated from slot machines and $7.3 million from tables games. Out east Plain Ridge casino generated $14 million in the month of December.
Connecticut is reporting that the impact felt at the states tribal casinos from MGM Springfield’s opening is less than expected. The state expected a 25% loss in slot machine revenue with the opening of MGM and Encore Boston Harbor. Now even though Encore Boston Harbor is not open they are adjusting their projections to a 9.2% loss. The state expects to receive $248.6 million in revenue from the two tribal casinos in 2019. This number is up from last year at 223 million. 25% of all slot machine revenue goes to the state. Wow that’s a big number! Just for conversation sake MGM’s been posting between 21 and $27 million a month. Let’s call it $25 million. At 25% that’s 6.25 million a month and $75 million per year. Which is half the projected and proposed income by MGM. When you look at the numbers like this you can see why the Connecticut lawmakers are doing everything they can to keep these tribal funds coming. I’m sure these numbers aren’t falling on blind eyes for Massachusetts lawmakers as well.
MGM projected $418 million in gaming revenue for their first year of operation. Followed by 500 million post market stabilization. It was reported that MGM hasn’t impacted attendance for entertainment and tradeshows at Connecticut Casino’s.
Mohegan Sun’s 145,000 square-foot $80 million earth expo and convention center opened in May 2018. Since they have successfully lured away both the Hartford boat and auto shows among others. This was something that MGM was supposed to know how to do well and bring to the downtown landscape. I also am hoping on more modern Music acts. Stevie Wonder was nice Cher for me personally is So-so and the rumors I’ve heard about upcoming acts. The stars are all over 69 years old. We’re going to have to do better than that. This combined with the hotel issue makes a good case.
Foxwoods has 2,266 hotel rooms and has been enjoying a 90% occupancy rate. Seats at their 4000 Person Grand theater have been steadily selling. Mohegan Sun boasts 1,563 hotel rooms at a constant 95% occupancy rate. Their 10,000 seat arena is well attended. I can’t help to think about one of my earlier rants about the big glass shiny hotel tower filled with visitors and gamblers alike that never came to fruition. Insert we should’ve built the big tower rant here.
On January 10 Governor Baker proposed legalized sports wagering here in the Baystate. His proposal called for both licensed casinos and online platforms to be authorized to take bets. Companies like Draft Kings already capture a large share of the mobile betting in other states. Collegiate and high school sports would be excluded. The estimated $35 million generated in tax revenue would go to local aid in 2020. The license requirement would have $100,000 application fee and the license costing $500,000 which would need to be renewed every five years.
Currently 8 states have legalized and are taking sports bets including Rhode Island. Those states are.
Governor Baker would most like our bill to resemble the one that currently is in operation in New Jersey. The garden state allows for both casino and track in person wagging. It also allows for mobile sports betting. The mobile sports betting accounted for 63% of the $1.2 billion wagered in the state. As I mentioned earlier the fantasy online company Draft Kings accounted for 32% of New Jersey’s mobile betting revenue. With numbers like this it’s easy to see why other states like Rhode Island are now pushing to add mobile sports wagering into their legal system. Currently the tax levied on gaming profits will result to 10% for in person bets and a 12.5% for the mobile bet winner.
Sports wagering is without question the hottest topic in gaming today. MGM gobbled up every major league sports besides the NFL which went to Caesars. It is the hopes of many industry leaders that it will bring many new players to the game.
What do you think about sports betting in the Baystate? The way this sounds it doesn’t leave a lot of room for the independent sports bar lottery operator. Do you believe this is the way sports betting should be handled here in Massachusetts? It’ll be fun to watch the race between Connecticut and Massachusetts and see how all of this plays out no pun intended.
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