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For Massachusetts casino revenue, progress is more of a crawl, adhering to the age-old principle of learning to walk before running, which is applicable in various aspects of life.
As limitations on their operations loosen, the three commercial gambling establishments in the Bay State are steadily approaching the levels of activity seen before the pandemic.
The metric showed improvement for the second consecutive month in January 2021. Nevertheless, there remains a substantial gap when comparing year-over-year data. This indicates that the casinos may not witness a return to normal numbers until consumer access and comfort levels normalize.
A look at Massachusetts casino revenue for January 2021
In total, the three casinos collectively generated nearly $58 million in gross gaming revenue during the initial month of the year. If we analyze this figure for each individual facility:
- The amount of $33.31 million is attributed to Encore Boston Harbor.
- MGM Springfield: $14.49 million
- Plainridge Park: $9.79 million
Encore not only recorded the largest hold for the month but also achieved the highest growth in that category compared to December 2020. During that month, Encore held approximately $29.27 million. In January 2021, the combined total for the three facilities increased by about $9 million compared to the previous month.
Following a strong performance in December, Plainridge Park experienced a significant improvement compared to the previous month. In November, their GGR was only $7.59 million, whereas it increased to $9.17 million in December. This consistent growth suggests that the positive trend is likely to continue in the future.
Trend of MA casino revenue could continue
The 9:30 p.m. curfew for casinos was lifted by Gov. Charlie Baker in late January. Additionally, he granted casino operators the freedom to allow up to 40% of fire code capacity within their establishments at any given time. However, the casinos have opted to maintain their limit at 25% thus far.
If local and relevant COVID-19 metrics continue to improve, the operators have the option to move in that direction. Similarly, the distribution of vaccinations follows the same pattern. According to the Massachusetts Department of Public Health, there have been decreases in cases, hospitalizations, and deaths over the past week.
Like other businesses in the state, casinos are optimistic that these trends will persist. They anticipate that this will not only result in a relaxation of restrictions but also boost the confidence of patrons who have been hesitant to visit.
Putting January 2021 numbers in another context
In January 2020, the three commercial casinos in Massachusetts generated over $80.25 million in GGR, prior to the world-altering effects of the pandemic. However, this year’s figures for the same month indicate a decline of approximately $22 million.
However, it is important to note that achieving full capacity will require more than just time and a surge in vaccination numbers. The comfort level of both residents and visitors towards being physically present at these casinos also plays a significant role.
It will most likely necessitate a large-scale media campaign by the operators, along with a considerable amount of time. The message will undoubtedly emphasize that despite the removal of safety measures, guests can confidently return and enjoy themselves.
Once revenue numbers return to pre-pandemic levels, it will indicate that casinos have successfully created a sense of security among their guests. Until then, they will continue to face the same challenge as other businesses in the state.
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