The casino industry in Massachusetts reports surprisingly low revenues for November. In total, companies saw a month-to-month decline of $ 24 million.
MGM at a record low
The casino industry in Massachusetts has been hit hard by the ongoing global pandemic and the tightening of security measures imposed by the state. All three casinos in the state are experiencing a significant drop in monthly earnings.
The surprising monthly figures were released on Tuesday by the Massachusetts Gaming Commission. The report reveals that casino giant MGM Springfield, now worth around $ 1 billion, made just $ 10.5 million in November. This is not only the company's lowest result in 2020, but also the lowest result since the casino opened in August 2018.
What is particularly surprising about this number is that it is even lower compared to July. The MGM did not open for a while in July due to blocking measures and still managed to finish the month with a profit of $ 10.7 million.
Year by year the numbers are dropping even less. In November 2019, MGM earned $ 19.9 million - almost twice as many as this year.
Consequences of restrictions
The drastic drop in earnings can be attributed to the number of restrictions imposed on casinos in Massachusetts.
MGM Springfield, whose mother MGM Resorts recently restructured its corporate team, is currently only open from 8am to 9:30 pm and is occupying a fraction of its capacity. Only a third of all slot machines and gaming tables can be used simultaneously.
In addition, the hotel casino, cinema and spa are currently fully closed and its catering service is limited to approximately 5 hours on Fridays and Saturdays.
The company even warned that in the event of further tightening of measures, it may be forced to layoffs of another 273 employees.
Plainridge and Encore also under pressure
Plainridge Park Casino and Encore Boston Harbor are in a similar position to MGM Springfield. Both casinos suffer from financial pressure from business constraints.
Encore posted $ 11.8 million in gaming revenue in November. Again, this is a significant drop from the $ 17.4 million earned by the casino in October and an even more sharp decline from $ 24.5 million in November 2019. The casino recently warned that measures could force them to lay off up to 1,000 jobs.
The Plainridge experience is the same again: the casino grossed $ 7.6 million in gross gaming income in November - down from $ 10 million last month. And again, even less than $ 11 million last November.
Overall, Massachusetts casinos grossed around $ 45 million in November - nearly $ 24 million less than in October. The sudden slowdown follows several months of slow but steady recovery. Casino numbers are slowly rising every month after a dramatic decline in April, fueling hopes for an improvement.
It is still unclear what the situation is at national level.