Commentary: A Shakeup at MGM Springfield
Mike Mathis, the individual who guided MGM Springfield through the permitting and construction phases and then the first 17 months of operation, is out at the South End resort casino. MGM has chosen to go in another direction, leadership-wise, and probably also with regard to how the casino operates.
Mathis’s ouster was announced Tuesday, and it was immediately linked to December’s record-low monthly performance for the Springfield casino when it comes to gross gaming revenues — under $19 million. That same month, Encore Boston had its best month since it opened last summer (with $54 million), and the juxtaposition of the numbers is telling.
What they show, at least from a gaming revenues standpoint, is that MGM is not attracting enough gamblers — it’s not bringing enough people to its doors. Chris Kelley, who ran MGM’s operation in Northfield Park in Ohio and took over in Springfield on Tuesday, will be charged with changing that equation. Mathis will assume a new role as senior vice president of Business Development at MGM, working on various company initiatives.
“We are excited to have Chris lead the MGM Springfield team,” said Jorge Perez, regional portfolio president of MGM Resorts International. “Chris’ experience in Ohio, rebranding and integrating a property and introducing MGM to the community, will be an asset for Springfield as we continue to work closely with the community and strive to not only be a world-class entertainment destination but also a good corporate neighbor.”
That won’t be an easy assignment. Indeed, while MGM Springfield has succeeded in bringing jobs, additional vibrancy, and opportunities for a number of small businesses, it hasn’t really succeeded in its primary mission — bringing people to Springfield.
This has been clear since the day it opened in August 2018, when visitation was well below what was expected. For roughly a year, Mathis repeatedly used the phrase ‘ramping up’ to describe what was happening, with the expectation — based on previous experience at other casinos — that the numbers would improve.
There have been some good months since, but the numbers haven’t improved significantly, if at all. And now that Encore Boston seems to be hitting its stride, it will that much more difficult to improve those gaming revenues.
From the start, the question has always been ‘will people come to Springfield?’ But there have been variations on that query, including ‘will people come to Springfield now that Encore Boston is open?’ and ‘will people come to Springfield instead of Boston, Rhode Island, Connecticut, New York, and all the other places where there’s casino gambling?’
Roughly 17 months after the casino opened, the answer to the question is the proverbial ‘yes, but…’ And the ‘but’ is followed by ‘not enough of them.’
It’s clear that MGM will have to create more draws — like the highly successful Red Sox weekend that brought an estimated 10,000 people to Main Street — to bring individuals and groups to the City of Homes.
In short, people need more reasons to come to the Springfield casino, and it will be Chris Kelley’s assignment to create them.