- MGM Resorts CEO Bill Hornbuckle has admitted to MGM misreading the Springfield gambling market.
- Massachusetts Gaming officials questioned MGM’s commitment to the city with its current employment level nearly just one-half of what it originally committed.
- That commitment and a discrimination case filed by a former Diversity Manager were the reasons why approval of MGM Springfield’s retail sports betting license was delayed.
MGM Resorts’ top official said last Friday that it is “not a real notion” to expect MGM Springfield to have its previously projected 3,000 employees.
During a visit to the Springfield casino together with city officials, MGM Resorts President and CEO Bill Hornbuckle said that his company’s initial promise of 3,000 jobs was “simply off”. Hornbuckle told officials that the casino currently has 1,440 permanent employees with 279 openings.
Per Hornbuckle:
Hornbuckle was in Springfield last week after Springfield officials questioned his company’s commitment to the city. They pointed out the casino’s employment numbers and a discrimination lawsuit filed by a former manager.
CEO of MGM Resorts International William Hornbuckle in town to discuss MGM Springfield's adherence to it's community host agreement with the city. pic.twitter.com/LAgppKkKQb
— Duncan MacLean (@DMacLeanWWLP) January 20, 2023
MGM Misread the Market
MGM Springfield opened in 2018 with roughly 2,900 employees on its payroll. The numbers significantly dropped in the months following its launch and have since been significantly cut due to the effects of the COVID-19 pandemic. However, company officials refuse to put the blame on the pandemic, rather they admitted to “misreading the market”.
During an interview, Hornbuckle said:
When it applied for a casino license, MGM officials projected that the Springfield casino would make $412 million during its first year with the number rising to $525 million in Year 5. But with a crowded market, the casino fell short by well over $100 million in Year 1. Year 4 was supposed to generate $512 million but current gambling revenues are at an estimated $22 million per month or less than $300 million per year.
To help the casino “spring back to life” Hornbuckle told city officials that they have reopened and expanded the opening hours of some restaurants and non-gambling activities. He also said that the casino expects to start offering in-person sports betting next month, which should help with the property’s revenue numbers.
The Same Issues Delayed the Approval of Retail Sports Betting License
MGM Springfield has built a 4,586-square-foot BetMGM sportsbook with stadium seating, a 45-foot viewing wall, betting windows, and self-service sports betting kiosks scattered around the property. But the opening of that retail sports betting shop has been delayed.
When the Gaming Commission started hearing sports betting license applications last December 7, commissioners voiced out “simmering concerns” that the state is not getting its full due from the casino and that casino officials have not been wholly honest about the casino’s employment diversity status.
Aside from the issue of employee count, commissioners were also wary about the case filed against the casino by its former diversity manager. The former employee, Chalen Brown, alleged that she was fired after going to higher management to complain about the diversity reports being sent to the commissioners were not accurate. The case was dismissed by the Massachusetts Commission Against Discrimination but the Commission but was reopened by the same authority weeks later.
Despite those, MGM Springfield was still able to secure a retail sports betting license. However, with Hornbuckle making the trip to Springfield last week for the same reasons that the approval of their retail sportsbook license was delayed, it remains to be seen how MGM Springfield’s relationship with the Commission will be affected, if at all, moving forward.
