Massachusetts & New York Expansion is the Beginning of the Local Gaming Era

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I read an interesting article about the Massachusetts casinos in progress.  Ray Porier, from “GamblingToday.com wrote that MGM & WYNN are ignoring the suggestion of gambling saturation in the northeast with their casino projects. He suggests that their confidence in the Massachussets market is actually ignoring the additional competition in New York.
Artist rendering of MGM in Springfield
Artist rendering of MGM in Springfield

In the case of MGM Springfield, it seems that urban revitalization is the key. And that is exactly what plays into the local gambling era. Wynn insists on testing the limits by wanting to add more hotel rooms and an additional entertainment venue.  Wynn continues to think the world will revolve around him, but with so many casinos, people may just want to stay close more often than visit the resorts.  Just ask the Connecticut casinos how difficult it is to keep their New York and Rhode Island patrons with New York’s expansion and Rhode Island’s additional table games.

Shouldn’t every casino be afraid of the future in the northeast?  Ray Porier reports that “….Michael Paladino of Fitch Ratings Services was quoted as saying, “We do think the market in the Northeast is saturated, particularly with the competition coming online in New York and Massachusetts. It means that, generally, new competition has limited ability to grow the market, and essentially cannibalizes existing properties to a great degree…”  And, a casino expert from Boston College, Richard McGowan, goes even further, saying, “In the long run…you’re going to see a repeat of Atlantic City, eventually.
In my opinion, Massachusetts projects will eventually cut back – much like Foxwoods & Mohegan Sun have done over the past two years – as they, too, will struggle to keep a hold on to their market share.
What once seemed to be a nice offering of casinos in four New England states could turn out to be a blood-thirsty competition to the very last dollar.  It’s gonna be a war out there and only the savviest of promoters will survive.
That’s all for now.
Binbin