New casino properties are all on the cards. The MGM Springfield is expected to open doors as early as August 24 and it will afford New York gamers a chance to experience one of the most accomplished brands out there on the markets first-hand. However, all good things come with at least one caveat. Local operators are worried that all their customers will leg it up to Massachusetts where they will be able to play at the $960 million resort.
Progress Demands Sacrifices
Still, executives from MGM Springfield and the other looming casino, Resorts World Catskills, have been quite composed in the face of local operators worries. It’s just business, as the popular saying goes. However, nobody really knows what will happen to the local market in earnest.
According to Moody’s Investors Service, the market has been growing saturated and casinos may now be competing against demand and the density of players, effectively trying to elbow one another outside of business. It’s about to get ugly some fear.
Whilst places like New York have nothing to fear in the heartland, they will certainly be pressured in the North where borders meet. Casinos that build close to the borders are not doing so out of ‘the best view in the region’ reasons. They expect to bite a juicy bit out of the competition’s patrons. And that’s okay, too, but it imperils as many jobs as the new casinos create.
Capital Region – The Regulated Land
Capital Region has been for a while the legal area where New York casinos could operate. However, its facilities have been reporting losses. Saratoga Casino Hotel has been in business for over a decade and its revenue dropped 20.2 percent. Quite the staggering sum and all of this occasioned by Rivers Casino & Resort, which have been in hot water over underage gambling allegations.
Meanwhile, MGM is setting itself up and gearing for war. MGM Springfield will be located within 110-minute drive from Rivers, adding even more competition to an already contested sector.
MGM Springfield is also not letting off the idea to target Capital Region and the customers that can be found there. The casino will be marketing itself to these gamers in full force, following its own business logic of customer acquisition and future expansion.
Rivers is also troubled by the size of its competitors. After all, Rivers costs $350 whereas the already discussed MGM is at a total price of $960 which will definitely make a difference in the long game. Locations are also important and of the two, MGM is better slated to crash the minnows.
The Resorts World is another project that will come in causing a major upheaval in local preferences and the landscape.
Interestingly enough, casinos continue to delve deeper into their bastions – casino games rather than thinking about expanding their sports betting activities. Newly legalized, sports betting is definitely a virgin market that merits future exploration and more efforts invested in the segment as a whole. Casinos may soon have to look up.