Plainridge Park Has Big Month, But Can It Compete With Wynn And MGM?

Although Plainridge Park Casino did not meet its initial revenue expectations, the modest slots parlor is gaining traction in the tranquil town of Plainville, Massachusetts.

In terms of gross revenue, July 2017 marked the casino’s second-highest performing month to date. The only month that surpassed it was July 2015, which coincided with the casino’s initial opening to the public under Penn National Gaming’s ownership.

Top line numbers for Plainridge Park Casino

• Last month, Plainridge generated a revenue of $15.5 million.
• The slot handle at the casino fell just a little short of $200 million, reaching $194.6 million. Ever since Plainridge Park opened, the total amount wagered has surpassed $4.2 billion.
• During the month of July, the slot machines at the casino had a reported payout percentage of 92 percent.
• In July, Plainridge Park’s total tax assessment amounted to $7,566,627, with a tax rate of 49 percent on slot revenue. State taxes accounted for $6.2 million, while an additional $1.4 million was allocated to the Race Horse Development Fund.
• Over the course of its existence spanning two years, Plainridge Park Casino has contributed a substantial $166 million in tax revenue to the state.

Where Plainridge Park’s taxes go

Plainridge Park Casino is required to pay a tax obligation amounting to 49 percent.

Plainridge allocates 40 percent of its revenue to the state in the form of taxes, which is specifically designated for local aid initiatives like the groundbreaking new town hall project in Plainville.

In July, the remaining nine percent of its tax obligation, totaling $1.4 million, is allocated towards the Race Horse Development Fund, providing financial support to Massachusetts’ horse racing industry, which is currently facing challenges.

A boon for the MA horse racing industry

Prior to the injection of casino funds into the horse racing economy, the Massachusetts industry was in a critical condition, barely surviving.

Interestingly, Plainridge Park itself is one of the primary recipients of the funds being contributed to the RHDF by the park.

According to the Statehouse News Service, Plainridge Park has a long-standing heritage as a harness racing track, predating its current casino status. This heritage is still preserved today, as live harness racing is undergoing a notable “revival.”

The revival at Plainridge Park Casino was spurred by both increased foot traffic at the property and the infusion of RHDF money. Consequently, there was a notable rise in the number of live racing days and an expansion in the size of the purses.

According to local reports:

Plainridge Park Casino has increased its number of racing days from 80 to 125. Additionally, the purses have experienced a significant growth, rising from $2.6 million in 2014 to $7.4 million in 2017. The live racing handle has also more than doubled, soaring from $7.6 million to $18 million. Moreover, the number of annual registered yearlings, referring to one-year-old standardbred horses, has risen from 36 to 51.

Two more casinos are on the way

Massachusetts is eagerly anticipating the completion of two resort-style casinos, as opening day draws near.

The opening date for MGM Springfield is set for September 2018, whereas Wynn Boston Harbor is targeting the autumn of 2019 for its official ribbon-cutting ceremony.

When compared to the soon-to-open MGM Springfield and Wynn Boston Harbor, the revenue generated by Plainridge Park will be relatively insignificant. Nonetheless, the disparity in tax payments between each casino won’t be significant.

When all three casinos are fully operational, Massachusetts Gaming Commission Chairman Stephen Crosby estimates that the state will generate approximately $300 million in tax revenue each year.

Crosby’s projections rely on both MGM and Wynn’s contributions of approximately $75-$100 million each. Additionally, Plainridge Park’s anticipated amount is expected to reach roughly $80 million, owing to its higher tax responsibility.

Plainridge, being a slot parlor, is required to pay 40 percent of its gross gaming revenue. In contrast, Wynn and MGM will be taxed by the state at a rate of 25 percent of their gaming revenue.

The responsibility for the nine percent allocated to the RHDF will be borne by all three properties.