Thursday 27th June 2019, saw Starbucks in MGM Springfield lobby operate for the last time. The lobby will now be replaced with a VIP lounge in a bid to attract high-bettors. The MGM workers who were working at the Starbucks have since been assigned new positions in the casino.
The $1 Billion Springfield-based resort had its doors open less than a year ago on August 2018 and since then, it has struggled to meet the revenues it had projected to meet in year one. The resort, before its debut, looked to win GGR of $416 Million and the figures released after 10 months of business, the Massachusetts-based property had recorded GGR of $212.5Million.
However, there was an increase in GGR won in May as compared to the one won in April. For May’s GGR, the resort won $22.28Million which was an increase from the April’s GGR which was $21.8 Million. For the target they had set at $416 Million, the resort would need to average a monthly GGR of $34.6 Million.
High-level managers disappointed
More recently, the MGM executives have been raising concerns about the resorts as opposed to the confidence they used to have in front of the public about the Springfield casino. Mass Live claim that in May, high-level MGM managers ‘were disappointed in their ability to draw high-roller gamblers to Springfield.’
On Michael Mathis, MGM President, part, he noted that many of the resort’s customers showed more interest in the bars and restaurants as opposed to those who tried their luck at the gaming tables.
Since its opening in August, Massachusetts Gaming Commission (MGC) claims that there has been a change of venue’s composition of table games and slots by the gaming managers in a bid to improve the revenue collection. For the resort in Springfield, there is a gaming space 125,000 square feet, 93 Table Games, 2,500 Slots and 23 Poker Tables.
Encore Boston Harbor competition
The latest move to close down Starbucks, world’s largest operator of coffee shops, to replace with a VIP Lounge for the high bettors, comes in the wake of competition brewed by the recently opened Encore Boston Harbor owned by Wynn Resorts.
The Encore Boston Harbor is the latest $2.9 Billion addition in Massachusetts opened on June 23rd, 2019. The resort nears Boston’s Logan International Airport.
Some analysts have stated that once the new resort picks up, it will be ‘one of the top regional casino property in the States and it will be the dominant gaming destination in New England.’
For a start, Encore Boston Harbor boasts a gaming space of 210,000 square feet which is the largest gambling space in the Bay State.
Gaming companies have always looked for ways to outsmart the rivals and among the ways is luring the big bettors. In Encore Boston Harbor’s case, the VIPs have been offered seats at Boston Bruins and Celtic games and also specialties given for the Red Sox Games.
This year, MGM Springfield signed a marketing deal with Red Sox which would enable the resort to become the team’s official casino resort. MGM has not attracted a lot of visitations from New England and nor has its presence been felt in Eastern Massachusetts where some of the moneyed residents in the States reside. With the latest addition being located in the East, MGM will have to do more.