By Josh Resnek
Last week’s release of the casino earnings report by the Massachusetts Gaming Commission revealed huge earnings by Encore Boston Harbor that dwarfed the other two casinos operating in Massachusetts.
It also revealed that the state got its cut from Encore’s take that amounted to slightly over $12 million for the month of July.
That figure was right on the mark for the state which had projected almost exactly that amount of tax revenue for the month.
However, Encore’s earnings projections were not met.
With the total take at $48 million, that’s about $600 million annualized for the gaming colossus.
That is about $400 million short of what Encore is ultimately hoping for when everything about getting fully going is developed and underway.
The $400 million disparity between what was projected for the year and came in is not considered onerous, according to industry experts.
Encore has just jumped out of the starting gate.
There is a long way to go in the development and expansion of the casino’s customer base.
In addition, the general flow of a percentage of the more than 35 million visitors to Boston during a given year is expected to dramatically expand attendance at the casino over time.
It is a very competitive regional industry right now with Foxwoods and Mohegan Sun locking horns with Encore for survival.
If Encore’s earnings don’t rise over time, industry sources claim it could be problematic.