For the success of every business, the value and potential of the target market is a very essential component that out to be considered.
However, saturation of the market with similar services significantly reduces the customer base for each of the businesses with eventual reduction in income.
This is what has been going on in New England, where the gambling industry has been oversaturated significantly affecting the income of the individual casinos. According to news by CalvinAyre.com, several gaming facilities in the state have been struggling to meet their financial expectations. MGM Springfield is perhaps the hardest hit by the oversaturation, well according to some experts.
MGM Springfield opened its doors just 16 months ago. It is built in the downtown area of Massachusetts and is worth not less than $960 million. Since the venue was launched, it has struggled to meet its set expectations, with each financial report that is released.
What is even worse is that things have only been getting worse. Income has been on the decline for the past few months, causing the gaming operator to push the legislature to allow sports gambling in Massachusetts, in the hope that this will boost its income.
Perhaps the largest contributor to the dismal performance by MGM Springfield is the two casinos in Connecticut. Mike Mathis, former MGM President once acknowledged to the press that the two tribal casinos were having a dramatic impact on the earnings of MGM Springfield.
The lawmakers of Massachusetts and Connecticut have been considering expanding gambling in the state. Already, a study is being carried out by the University of Massachusetts on the impact of casinos on the state and what additional gaming venues would mean for the state.
In Connecticut, the gaming industry is comprised of two tribal-run casinos. Well, even if there are others trying to come up behind the scenes, these two are the most popular to be precise. There are considerations to change this. A new online sports betting facility is being proposed in iKeno as well as a new gaming facility in Bridgeport.
The presence of casinos in the neighboring Rhode Island and New York that are drawing customers from the state, is one of the major fuels to push for expansion. Lawmakers in Connecticut and Massachusetts are seeking to give gaming options to their residents so that they can keep the money within New England.
The poor performance by MGM Springfield is also affecting the progression of proposed East Windsor in Connecticut. The Tribe Mashantucket Pequot runs the Foxwoods Resort-Casino, and was going to inject relatively around $300 million into the East Windsor project.
However, the tribe seems to be reconsidering the decision. During a meeting with the Massachusetts legislatures’ committee, Rodney Butler, chairman of the Mashantucket tribe, explained that they have revised the initial plan. He said they now know more regarding the New England gaming market and there have been concerns on the saturation of the market.