I’d like to see MGM Springfield become even more successful

May 24, 2019 | G. Michael Dobbs
news@thereminder.com

I’ve learned over the years that a story may be a series of words or images to some, but it can be a living organism with a life of its own.

Take for example the story about MGM considering a purchase of the about-to-be opened Encore casino in Everett.

I thought this story would be suitable for the front page but its life span was practically that of a mayfly – an insect that dies after a day. So, no front page for it.

It was an intriguing story as it was a case of déjà vu all over again – forgive me Yogi Berra. If you remember about a year ago there were talks about MGM buying out Everett and one of the native casinos in Connecticut buying MGM Springfield.

At that time that story was seen as all rumor and speculation.

Selling a casino is nothing new.  Do a search for “Treasure Island” and MGM to see what I mean. It’s not that unusual.

What made this interesting is that two companies that are rivals in the gaming industry were admitting to having talks for a sale.

MGM is a huge international company and I’m sure the idea that it could be in the Boston market was appealing. I can’t blame them.

In fact, I often wondered why they sought this license instead of that one. Of course, the casino they built is a pilot that, if successful, could be a new model for casinos for urban locations.

Wynn Resorts, which is developing the Encore casino in Everett, was recently the object of a lengthy investigation by the Gaming Commission about issues revolving around its corporate culture and sexual harassment.

The Gaming Commission leveled a $35 million fine to the company and a $500,000 fine to its CEO. Perhaps the company had second thoughts about its stay in the Commonwealth.

It’s not been quite warm and fuzzy for them. I imagine that Wynn CEO Matthew Maddox probably is chafing a bit not only at the half-million dollar fine but also probably does not like having to hire an executive coach to help him change the culture of the company.

Since all the press knows at this point is what has been released in media releases, it’s safe to say we may not ever know exactly why Wynn resorts would want to sell and whether or not MGM was serious in considering a purchase.

It would have been a process with a lot of moving pieces. MGM would have had to fulfill every condition of the Wynn’s Host Community Agreement. The sale would have had to be approved by the government of Everett and the Gaming Commission.    

Here, MGM would have had to sell the Springfield casino as by law no one company can have two licenses.  I’m guessing the Gaming Commission would have demanded the two purchases would have been coordinated so neither casino would be closed.

One group of stock analysts issued an opinion on the website Seeking Alpha that gave a favorable assessment to MGM buying Encore. They believed it would strengthen MGM stocks as well as Wynn’s. The assessment did not mention the impact on Springfield.

Who knows, though? It’s all now just fodder for conversation.

I’m sure that within a week I will be hearing a fair number of rumors about this little incident. That seems to be the cycle swirling around MGM Springfield.

I will readily admit I’m happy that MGM Springfield will stay. I believe the casino is starting to add entertainment offerings and other features that will draw more people to it. I’ve been told by someone who knows these things it takes a casino three years to fully understand its market and make necessary adjustments. I’d like to see MGM Springfield go through the process in order to become even more successful.

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