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Massachusetts Casinos Performed a Bit Better in December (But Full Recovery Is Still Miles Away)

Article by : Helen Jan 29, 2021

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The figures on the performance of the Bay State’s casino industry in the last month of 2020 are in. Traditionally published on the 15th of each month, Massachusetts Gaming Commission’s report shows that the state’s three casino properties managed to bring in around $50 million in gross gaming revenue in December – up from $45 million in November.

Encore Boston Harbor was doing considerably better last month than the two other venues. The property’s monthly gross gaming revenue accounted for more than half of the state’s combined GGR. It amounted to $29.27 million, with the slot machines pulling in $16.098 million and the table games bringing the business $13.175 million in revenues.

However, Encore’s year-on-year financial results are underwhelming: in December 2019, the venue reported $54 million in gross gaming revenue, twice as much as in the same month in 2020. Besides, its August through September income stayed above $40 million in 2020, after slumping down to $27.35 million in November amidst the third wave of the pandemic in the U.S.

MGM Springfield couldn’t boast such high figures as Encore. The casino reported a monthly revenue of $11.385 million in December 2020, with slot machines accounting for most of it ($9.365 million). However, the year-on-year comparison isn’t as devasting as in Encore’s case: December 2020 monthly revenue was 39.9% lower in the same month in 2019 when it brought in $18.953 million.

Plainridge Park Casino, the oldest casino venue in the state, reported $825.6 thousand in revenues, an insignificant drop compared to $918.59 thousand in revenues in December 2019.

The good news is that all three Massachusetts venues saw a slight increase in monthly gross gaming revenues on a month-on-month basis – around 21% for Plainridge Park Casino, 8.4% for MGM Springfield, and 7% for Encore Boston Harbor. This slow rebound may not continue in January, however. Starting December 26, the Bay State businesses operate under toughened capacity limits – like for casinos, they are restricted by a 25% cap.

On the other hand, state officials claim that casinos will have no problem staying within the capacity limits as they are currently serving fewer guests than that, as reported by MassLive. For instance, in recent weeks, MGM Springfield’s record was 22% of its full capacity, with an average of around 19%.

While the state, like many others, struggles to find more income sources for its budget in 2021, sports betting is off the table for now. There have been talks about including sports wagering in Massachusetts’ economic development bill, but it didn’t make the cut – but state legislators still weigh in on a standalone bill that would legalize it.

We look forward to working on a good sports betting bill next session when we have time to really focus on it.

According to legal sports betting supporters, the new industry could bring the state budget between $20 and $35 million in tax revenues a year. While state officials recognize sports wagering as an “untapped opportunity,” it’s the “how” of legalizing it that legislators still need to agree on. “While some stakeholders want to focus solely on those that have access either because they’re an existing license or a fantasy sports operator, others would like to see a more robust, competitive market,” said Brendan Bussmann, a gaming industry analyst partner at Global Market Advisors.