Foxwoods and MGM Joint Venture
If ESPN can show games from previous years, NETimeGambling will dip into our archives and bring some of the best in our coverage of New England’s Casinos. So, today, we go back to 2013. We covered the Foxwoods and MGM joint venture and the breakup that followed. I hope you enjoy this look back at sixteen years ago. This is one of our first posts at NETimeGambling. Foxwoods and MGM Joint Venture Ended in 2013
The Lion Will Roar No More in Connecticut
Foxwoods Resort Casino parted ways with Las Vegas-based MGM Resorts International in 2013. They announced the end of the licensing agreement that enabled Foxwoods to brand its second casino tower, MGM Grand, at Foxwoods. The “Wonder of it All” used a six-month transition period to complete the change. (The result was the Fox Tower & the Fox Casino) This is the rest of the story……
The “lion” hasn’t been roaring much in the past six years. Terrific entertainment in the MGM Grand Theater, outstanding restaurants, and the club Shrine have been highlighted. However, the MGM property has been underwhelming. The small casino has a minimal personality. The fact that MGM had to go through Foxwoods’ Rewards Club also hampered its clientele. Being able to play in Vegas and spend in Foxwoods, or vice versa would have increased popularity and solidified the future growth of the property. Still, both gambling companies seemed to have different paths in mind.
The Recession – Foxwoods and MGM Joint Venture
The tribe and MGM International — then known as MGM Mirage — signed the agreement in 2006. It was at a time when both were eager to pursue gaming opportunities in the Northeast. MGM Grand was built next to the tribe’s Foxwoods Resort Casino complex and cost more than $700 million. It opened in May 2008, just as the Great Recession’s effects were beginning to be felt. As a result, New England people thought this was an ill-timed project like yours.
Scott Butera, then Foxwoods president and chief executive officer, said the decision was related to an ongoing Foxwoods makeover. “We wanted to consolidate our property under the Foxwoods brand,” he said.
(Please note – MGM supported off-reservation projects as long as they were a part of it. However, since 2015, MGM has done everything in its power to deny these projects happening due to competition in Springfield.)
MGM Looks to Massachusetts
Both parties were “mutually agreeable” to the dissolution of the Foxwoods-MGM licensing agreement. MGM hoped to develop a resort casino in Springfield, Mass., less than 80 miles from Foxwoods. MGM is quite confident they will be chosen over the other CT casino’s interests in Palmer by the Mohegan Sun, which was true.
“With MGM working toward a significant presence on the East Coast, it was the opportune time to review our relationship (with Foxwoods) and dissolve the licensing agreement.” In addition, recent attention to expansion into Maryland, Massachusetts, and even Great Britain presents a global expansion out of Nevada. It all follows MGM’s successful casino in Macau, China. (MGM Springfield did open successfully. And while it has continuously underachieved in revenue, MGM International continues to tweak things, adding better and more diverse gambling, a VIP Lounge, and extending more privileges to lower cardmembers, such as free parking and many more promotions.)
Foxwoods Looks To Build Another Casino
Foxwoods was also involved in a Massachusetts casino proposal. It sought a license to build a $1 billion project in the Greater Boston town of Milford. However, community opposition and late deadlines due to planning changes made Steve Wynn, their obvious choice from the beginning, the leader in this region.
Related Post – Foxwoods Massachusetts Plans to Increase Size of Casino Development
In 2013, Foxwoods made significant changes and renovations due to Butera’s national gaming experience. Between Butera, who jumped to MGM, and Felix Rappaport, Foxwoods sought to move toward other revenue sources. Restructuring debt and putting 1,000 slots and 100 tables into storage were essential to making their resort less gaming-centric. The concentration was with amenities going from 20% of Foxwoods revenue base to 30%-35%, similar to the Las Vegas Strip properties.
Related Post – Thrill Rides and Family Entertainment at Foxwoods
Imagine the likes of Wynn, MGM, Foxwoods, and Mohegan Sun in a radius of 90 miles. Competition can only be good for the consumer! (In fact, the other three casinos, Rhode Island’s monopoly on legal sports betting, and saturation of casinos in the area have only recently started to present competition.)
That’s all for now.
Binbin