2019 has been a tough economic year for most businesses, both small and large businesses. It seems two casinos in Massachusetts were not spared by this wave either. News reaching Calvin Ayre is that two casinos in the state recorded low revenues while the state’s newest casino recorded a small increment in its earnings.
This is according to the figures released on Monday by the Massachusetts Gaming Commission (MGC). Encore Boston Harbor in Wynn, the newest casino in town, recorded a total income of 47.3 million dollars in November. This is up 1.5 million dollars from its earnings in October.
These earnings seem to have come from both of Encore’s gaming slots and tables. Revenue from the casino’s gaming slots went up from $500k to $22.8 million, making it the best earnings since its opening in June. However, the money handled at the slots in November, which was $286.9 million, was still below the best ever achieved.
In August, Encore recorded a peak of $359.2 million of revenue handled at the slots. On the other hand, the gaming tables revenue rose by $1 million to surpass $24.5 million. According to Calvinayre.com, despite this being better than the earnings in October, it was the second worst earnings ever recorded since the casino was opened, this is according to comments by the employees who’ve worked at the establishment the longest.
In a statement, the company said that it hoped that this was a sign that things would get better, and that the management is laying strategies to that can help increase the company’s profit margin. This was after the casino realized that its low earnings could be because of its high table bet minimums. This caused it to reduce the minimum bet placed at the table from $50 to $15 and the aim was to increase the number of gamers and fans.
Things were not looking up for other casinos. Take for example MGM Springfield, owned by MGM Resort, recorded total revenue of $19.9 million in November. This is $1.2 million lower than the earnings of October and the lowest recorded in a span of 15 months.
The gaming tables were accused as the cause for the decline in revenue as the slots recorded a minor increase. Plainridge Park, a slots only casino also recorded a decline in its earnings.
Its revenue reduced to $5.4 million, making it the casino’s lowest earnings in its entire history of operation. This was the fourth month in a row that earnings from the casino failed to reach the $6 million mark. Plainridge Park is owned by Penn National Gaming (PNG).
Recently, the casino stated that the economic impact Encore has on its own business is larger than they had earlier expected. This has been one of the major reasons revenue has been declining. Plainridge reduced earnings is also one of the major contributors to PNG failing to hit its quarter three expectations. Lets hope that December treats both casinos better.