Yesterday witnessed the reboot of the MGM Springfield casino in Massachusetts, but under very different operating procedures. The hotel attached to the venue isn’t ready to open its doors to guests yet and the gambling area is only operating at about one-third of what it normally wants to see. The “biggest challenge” of the casino industry as a result of the coronavirus pandemic is forcing changes on a number of different levels and, as the MGM property tries to put the shattered pieces back together, it’s hoping its home city of Springfield will show it some mercy. 

The MGM Springfield cost almost $1 billion to build and was expected to be a huge source of jobs and revenue for Springfield. Things got off to a good start, but increased regional competition slowly began to eat away at the casino’s position and COVID-19 made things even worse. With no hotel, only a few eateries and a much smaller gaming floor, only a handful of the property’s employees have been asked to return to work. 

According to MGM VP and general counsel Seth Stratton, while giving a tour to reporters, “It’s the biggest challenge our industry has ever faced. I don’t know what customers will show up. That said, we are working very hard to welcome them back in a safe environment.”

In working out a deal to put a casino in Springfield, MGM made several financial arrangements with the city. Those arrangements are now in peril, as the casino may not have the necessary capital needed to cover its obligations. MGM is working with the city to reduce or delay payments; however, the talks have taken a break as everyone looks to see what type of public reaction there is to the reopening of the casino – perhaps MGM will be surprised and receive a windfall.