MGM Springfield ‘cautiously optimistic’ about the future

Feb. 15, 2021 | G. Michael Dobbs
news@thereminder.com

SPRINGFIELD – Chris Kelley is cautiously optimistic about the future with the pandemic retreating and the potential passage of a sports betting bill for Massachusetts.

The president of the Northeast Group, MGM Resorts, which includes MGM Springfield, told Reminder Publishing “like every business in Massachusetts and around the country decisions are driven by public health conditions at the time.”

Right now, MGM Springfield has been allowed to resume its normal hours of being open 24 hours a day, sevendayss a week.

On Jan. 29, when normal hours began again, Kelley released the following statement: “MGM Springfield returns to 24-hour operations today and it feels like a step toward a level of normalcy. We appreciate everyone having done their part to slow the rise in COVID-19 cases, and we will continue to be vigilant with our health and safety protocols. We are happy to welcome back some team members today, and as the capacity restriction is eased and additional amenities reopen, such as the hotel and Tap, our hope is to welcome back even more.”  

The  Baker Administration has increased casino capacity to 40 percent, and MGM has re-opened part of the hotel to "invited casino guests." The popular TAP sports bar and restuarant has also reopened.

Kelley expressed optimism because of the distribution of a vaccine for COVID-19 business and life will begin approaching “normal,” but he noted status quo might look different now.

While he said the company is “always examining options,” his and the company’s “primary focus is on the strict health and safety protocols.”

MGM Springfield was opened in 2018 and Kelley noted that any casino takes three to five years to perfect its business plan.

“We’re still early in development,” he noted.

In terms of profitability, Kelley said the figures used as projections predated the events of 2020.
“We never considered a global pandemic,” he said.

He noted the casino’s numbers have seen some recent improvement. He added the casino’s management is always focused on refining the marketing of the casino, much of which is done directly to casino patrons who have signed up for the MLife loyalty card program.

He still believes that MGM Springfield is an economic development engine for the region – “A very important part of the MGM story.” He continued, “The $1 billion [construction cost] is the largest private investment in the history of Springfield.”

The parking garage at the casino and the announced redevelopment of 31 Elm St. – fulfilling the contracted market-rate housing that was part of the Host Community Agreement – are two of the features that have made an impact on downtown.

One development that could alter the casino’s future would be the legalization of sports betting in the commonwealth. MGM has had success in 10 states with a sports betting app and Kelley said, “We need to make this a legislative priority.”

What concerns Kelley, besides the amount of money Massachusetts is losing to illegal sports betting, is sports betting in the nearby states of Rhode Island and New Hampshire. Maine is considering the issue, as is New York, according to media reports.

Kelley believes there would be millions of dollars at stake for casinos and the commonwealth with sports betting.  

He said, “The ability to compete with other states is important to our commonwealth.”

Kelley said the company is considering options for the use of the space at State and Main streets, the home to Focus Springfield. The television outlet will be moving later this year.

“We’ve had 11 million visitors since we opened in 2018,” Kelley said. “The value of those visits can be seen in taxes, jobs, etc. That from my perspective is the MGM Springfield story.”

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