Sarno, MGM leadership host ‘productive’ meeting on casino’s future

Jan. 31, 2023 | Matt Conway
mconway@thereminder.com

(From left to right) MGM Springfield President Chris Kelley, MGM Resorts International CEO William Hornbuckle, Springfield Mayor Domenic Sarno and Ward 2 City Councilor Michael Fenton met on Jan. 20 to discuss the state of MGM Springfield.
Photo Credit: City of Springfield – Office of Communications

SPRINGFIELD — MGM Resorts International CEO William Hornbuckle joined Mayor Domenic Sarno, MGM Springfield President Chris Kelley and Ward 2 City Councilor Michael Fenton for a Jan. 20 meeting on the state of MGM Springfield. The hour-long meeting concluded with a press conference at City Hall that candidly addressed the status of the casino nearly four and a half years after its August 2018 opening.

The conversation included a slew of positive updates, such as the announcement of MGM Springfield’s on location sportsbook and BetMGM online service on Jan. 31, alongside an honest realization of the casino’s performance thus far. Hornbuckle acknowledged that the casino would possibly have not been built in Springfield had the current market conditions been previously known.

“Our original valuation of this market simply was, off full stop … We thought there would be more business here than ultimately materialized,” said Hornbuckle.

Hornbuckle introduced himself by discussing his ties to the area. He shared that he grew up near Springfield and has been intimately involved in the casino’s development since 2014. Hornbuckle dispelled the notion that the organization is disconnected from the Springfield community.

“The notion that there is not connectivity with what’s important in Springfield with this project is not righteously placed, we have a deep, deep respect for this community,” said Hornbuckle.

Hornbuckle’s visit to the Springfield area is a byproduct of Sarno’s request for a conversation regarding MGM Springfield’s host community agreement. While the organization continues to meet contractual obligations via tax payments, including $107 million to Springfield and $347 million to the state, MGM Springfield has struggled to meet other promises.

Most notably, the casino has not met its job projections. The promise of 3,000 jobs upon opening has rarely been satisfied during the casino’s existence. Hornbuckle shared that MGM Springfield currently features 1,400 employees and 279 open positions. He believes that an employee base of 2,000 workers is now a more realistic goal for the casino.

“We recognize the circumstance we are in … There is capacity in that building for 3,000 jobs, but it’s going to involve making Springfield more of a destination.” said Hornbuckle.

Kelley said MGM Springfield is focused on attracting employees to fill the vacant positions. For benefits, he said dealers are paid to attend dealer school, internship programs are available to pursue different sectors of the casino’s operations and free meals are provided to employees throughout their shifts. Kelley said retention and signing bonuses are also under consideration.

Hornbuckle said he and Kelley are focused on continued growth for the MGM Springfield. He stressed that the organization will be more active in highlighting news on developments going forward.

“We need to do a better job frankly telling our own story,” said Hornbuckle.
The quartet each referenced the coronavirus pandemic as a factor impeding MGM Springfield’s performance to date. Several retail options, such as the Kringle Candle Shop and Indian Motorcycle, and dining facets of the casino, like the Italian restaurant Costa, remain in a limited capacity or are closed altogether.

Hornbuckle said the casino faced some variation of mask advisories until February 2022 after reopening in June 2021. Roughly a year removed from the advisories, Hornbuckle highlighted his vision for gradually returning the casino to semi-normal operations.

“COVID[-19] was devastating … Now, we will begin to reopen some of the things that have gone dark,” said Hornbuckle.

In the first quarter, MGM Springfield will debut its sports book along with expanding several operations, including:

  • Add Sunday operations to Costa, which currently is open Friday and Saturday.
  • Add lunch operations to TAP Sports Bar on Thursday and Friday, which currently is open for dinner seven days a week.
  • Expand Roasted Bean’s hours to 10 p.m. seven days a week.
  • Eliminate the need for reservations at Top Golf Fridays to Sundays.
  • Open TAP Bowling seven days a week, which currently is open Friday to Sunday only.
  • Open Indian Motorcycle retail Fridays to Sundays.

Hornbuckle shared that the Hotel Lobby Bar will reopen on Fridays and Saturdays in the second quarter. Chandler Steakhouse will also expand its weekend operation to Thursdays and a path to reopen Kringle Candle will be finalized. In the third quarter, MGM Springfield will reopen The Salon on Main Street and formally evaluate “ongoing operations to adjust the operations of its amenities as necessary.”

Regarding criticisms of some restaurant spaces featuring limited operations, Hornbuckle said that most MGM locations feature specialty hours of operation for fine dining establishments.

“The fact that a restaurant is closed for a couple of days is not uncommon, especially in our labor market,” said Hornbuckle.

Sarno noted that neighboring restaurant spaces continue to enjoy positive spinoff effects from MGM Springfield, which the mayor noted as an intention of his when attracting the casino.

“You talk to any restaurateur or amenities [downtown] … places are packed, and that was a key thing,” said Sarno.

Hornbuckle admitted that some retail businesses have proven to be in inadequate fit for the city and MGM Springfield. He referenced Indian Motorcycle specifically as one retail space that will need to be reconsidered even after it reopens.

“Indian was a nod to the city and the history and all that entailed … The point there is, its not the right thing for the property or for the company. We need to over time begin to rethink things like Kringle and Indian Motorcycle and other retail that is going to be conducive,” said Hornbuckle.
MGM Springfield also remains involved in several downtown developments. Sarno and Fenton referenced the 31 Elm St. Court Square housing project and redevelopment of the Masonic building on State and Main Street as projects the casino remains financially involved in.

Other MGM Springfield-related developments have halted in progress. When asked about the vacant 1200 Main St. property MGM Springfield owns, Hornbuckle and Kelley noted that there is no progress in developing a vision for the space.

Fenton, who also chairs the City Council’s Casino Oversight Committee, said the added clarity of a post-coronavirus pandemic market will aid the casino in shaping its future vision. He stressed that his focus is on collaborating with MGM Springfield throughout that process.

“My focus as chair of the Oversight Committee, and in conjunction with the administration, is to meet with the organization to talk about what that looks like on a going forward basis … We can expect that 2023 will have some exciting developments,” said Fenton.

When asked by Reminder Publishing about any specific benchmark goals for 2023, Hornbuckle said the organization is focused on improving the vitality of the casino. He did not cite any economic or occupational benchmarks for 2023.

“We don’t have an economic benchmark per say … but bringing this thing back – the vitality, the spirit, the energy, the mindset and the mindshare back for this community – and pushing in the right direction is what’s important for us,” said Hornbuckle.

Sarno expressed gratitude for MGM Springfield’s partnership with Springfield. He highlighted several community projects the casino has been involved with, such as forming a partnership with Rachel’s Table and hosting Rock 102’s annual Mayflower Marathon for the first time in 2022.

“They’ve been there, and they are looking to do more,” said Sarno.

While he acknowledged ongoing challenges facing the casino, Sarno remains optimistic about MGM Springfield’s future outlook.

“We are starting to get our mojo back with MGM,” said Sarno.

Hornbuckle also believes the casino will continue to improve, but admitted the process will not be instantaneous.

“We will get it to a better place … but it will take some time. It will not happen overnight,” said Hornbuckle.

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