MGM Springfield return on investment called “less than certain” by analysts

(MGM Springfield)

SPRINGFIELD, Mass. (WWLP) – The temperature outside may have taken another plunge, but the casino border war is heating up

The concrete is being poured on MGM’s Springfield Casino. But what is not concrete is their future finances.

Financial analysts have predicted that up to a third of MGM’s annual profits could come from the Hartford area.

Connecticut is just a vote away from building this competing casino in East Windsor and according to financial analysts, MGMs revenue projections are anything but certain.

“The one that is closer is the one I am going to attend more, but it’s kind of like Six Flags and Lake Compounce. Every once in a while you are going to visit Lake Compounce. Every once in a while, check out the other casino for something different,” said Nick DeJesus of Springfield.

The Connecticut tribes that own Mohegan and Foxwoods have proposed to strategically placed their casino right off I-91 in the hopes of cutting off casino traffic north to Springfield. They are trying to protect an estimated 9,300 jobs and $703-million in revenue over three years. Some say MGM will still be the better destination.

“I think it is probably the best decision that Springfield has ever made because we need more money here. We have the Basketball Hall of Fame that attracts a couple of people, but other than that,” said Dakota Henderson of Springfield.

But another Springfield resident said she would drive past both casinos to get to her favorites in Southern Connecticut.

“I like the drive to do to Connecticut. I don’t think I would frequent the one in Springfield as much, even though I live here. I like to drive to Connecticut. It’s the fun of it like going on vacation,” said Tasha Martinez of Springfield.

At nearly a billion dollars, MGM’s casino is a lot more expensive than the $300 million East Windsor proposal.

22News asked MGM if they are worried about losing annual revenue. This was their response.

“MGM is as committed to MGM Springfield today as it was when we were awarded our license in 2014, and well positioned to be a leader in New England’s multi-billion dollar gaming market, while creating thousands of new jobs and revitalizing the urban hub of Western Massachusetts.

“We are confident that our innovative downtown design, expertise in marketing and strong brands will make our Main street location the region’s premier casino resort destination. We are moving full steam ahead for a fall 2018 opening.”