Downtown Springfield has not seen the revitalization promised by MGM Springfield’s arrival. iStock photo
When it comes to casino gambling in Springfield, the bloom is quite definitely off the rose.
The MGM Springfield opened with grand expectations in August 2018. Hopes were high that the roughly $1 billion casino resort would provide a major boost to the scrappy but struggling Western Massachusetts city, devastated by a deadly tornado in 2011.
Barely five years later, dashed hopes and bitter disappointment are the order of the day. MGM had projected the casino would employ 3,000 people, but the number is half that now, and Springfield officials are not happy.
There are also concerns about crime and complaints that what was supposed to have been a deluxe, downtown resort casino has fallen significantly short of the mark when it comes to amenities, not to mention service and overall quality as well.
In fact, the only real question now is whether MGM decides to stick it out in what has become an unhappy marriage, or instead looks to sell what has the potential to become a real drag on the casino company’s otherwise sterling brand.
Less Money, Fewer Workers
At the end of the day, it all comes down to money. From the day it opened, MGM Springfield has never produced the kind of revenue the Las Vegas gambling giant predicted it would back when it was competing for a state license to build and operate a Western Massachusetts casino.
Back then, MGM was predicting its Springfield casino would be bringing in money hand over fist to the tune of nearly $35 million a month.
Contrast that with the $23.3 million in revenue the casino brought in during the month of May.
Lower than expected revenue, in turn, has meant far fewer employees than MGM had initially projected, with the number hovering at just under 1,500 at the end of the first quarter.
Now MGM says 3,000 is no longer a realistic number, with CEO William Hornbuckle swinging through Springfield earlier this year to deliver the bad news.
Instead, the new benchmark should be 2,000, according to remarks Hornbuckle made to city officials that were recorded by WAMC radio.
“Our original valuation of this market simply was off – full stop,” Hornbuckle was recorded as saying.
“We thought there would be more business here than ultimately materialized – scale, scope, etc. And so, it is what it is. And so we’re pushing forward. We’re trying to make the very best of it,” Hornbuckle said.
Foot-Dragging by MGM
Of course, it’s also possible – in fact even likely – that MGM knew it was puffing up its jobs and revenue projections back when it was competing in the 2010s for a license to build and operate a casino in Massachusetts in the wake of the state’s passage of gambling legalization.
And it’s also possible that MGM never bargained on the projections being that far off, with revenue coming in roughly 37 percent below those bullish predictions made during the bidding process.
As absurd, if not more so, has been MGM’s foot-dragging when it comes to reopening restaurants and other amenities at its Springfield casino closed during the COVID crisis.
Yes, you are reading that correctly: MGM is still in the midst of a “reopening” process, which generated a minor hoopla in the local press in late May when the casino giant reopened a hotel lobby bar and a new poolside bar.
These, in turn, were “all latest steps in a years-long process of reopening and recovery from COVID lockdowns,” MassLive reported with the newspaper story equivalent of a straight face.
I suspect I’m not alone in thinking that sounds very 2021. Even here in Massachusetts, it’s hard to recall the last time anyone was talking about COVID reopenings, but apparently that is still a thing out at the MGM Springfield.
If these bars and other amenities were viable, money-making operations, it’s hard to imagine that the casino’s managers wouldn’t have found accelerating the so-called reopening process by now.
All that is before we get to some other worrisome trends.
Surge in Police Calls
In a grant application to the Massachusetts Gaming Commission, Springfield’s police cited a 53 percent jump in calls withing 500 feet from the casino in 2022 over the previous year, Western Massachusetts News reported.
The Springfield Police Department wound up getting $135,200, which will go towards sexual assault training, steel barricades, a police cruiser, a drone and money to cover overtime expenses.
Scott Van Voorhis
Meanwhile, the reviews are TripAdvisor are mixed at best, with lots of complaints about either not being enough to do, or not feeling entirely comfortable or safe in the area around the downtown casino.
“I am a gold member at MGM and can’t stress enough how much this place has gone downhill since they opened,” wrote one disgruntled patron earlier this year. “I’m not even sure who their target audience is as I was informed I lost my host services.”
This can’t be a good look for MGM.
At this point, it’s clear the MGM Springfield is never going to be the gilded, glitzy resort the casino giant pitched all those years ago when MGM was competing for a state gambling license.
Is MGM looking at an exit strategy? It would be surprising if it weren’t.
Scott Van Voorhis is Banker & Tradesman’s columnist; opinions expressed are his own. He may be reached at sbvanvoorhis@hotmail.com.
