During its first year of operations, the GM Resorts casino in Massachusetts produced more than $ 640 million benefiting the state’s economy. Although in the midst of the crisis generated by the coronavirus pandemic, which persists and there is no certainty when it will end, it is difficult to make forecasts about the future of the business.
According to a study by the University of Massachusetts, the MGM Springfield casino located in the southwest of the state had an average 2,538 employees in 2019, when it was the first year of operations of the property, which was opened in september 2018.
The study released wednesday shows that employees earned a combined salary of $ 85.2 million. While the casino and its clients created another 3,740 additional indirect jobs. This increased the total personal income supported by MGM Springfield to $ 357 million.
Results for the first full year of operations for MGM Springfield were $ 974.2 million. Of these 640.1 million dollars constituted added value. The property spent $ 110 million with local suppliers and paid $ 101.5 million in taxes to the state. Casino customers, also spent another $ 66.3 million on off-property services.
MGM had promised the state to create 3,000 jobs for residents with its Springfield casino and was unable to do so. Although I have used a fairly close amount, the payroll was finally reduced to about 2,000.
Currently, the number of casino employees is only 800 after the closure caused by the coronavirus pandemic and its reopening in august at 30% of its capacity. Seeing no signs that it will be able to function normally anytime soon, some 1,000 MGM employees were laid off in august.
The casino also failed to meet pre-opening revenue projections of about $ 35 million per month. The number that came closest to this goal was during the first month of operations, when its revenues reached about $ 27 million. Since then, the average has been about $ 21.5 million.
The state’s three casinos produced a combined August revenue of about $ 71 million, according to data from the Massachusetts Gaming Commission (MGC) released in september.
Of this sum, MGM Springfield earned $ 18.5 million, well below Wynn Resorts’ Encore Boston Harbor which generated $ 42.4 million. While Plainridge Park, specialized in slots and owned by Penn National Gaming, made about $ 10.2 million.
After the MGC authorized its reopening this summer, the MGM and Wynn casinos were unable to offer roulette, poker or craps.
Last week, the regulator announced that it would allow the game of roulette again, albeit with restrictions.
Encore can operate only 16 roulette tables and MGM only seven. On the other hand, of the nine seats at each table, only three can be used. Each must be separated by plexiglas and there may be no standing spectators.