Steep drop follows dramatic rise
By Josh Resnek
Gaming revenues fell by more than 12% or $7.6 million at Encore Boston Harbor Casino and Hotel last month.
Total gaming revenues came in at $55.6 million for November, sinking to $55.6 million in revenues, according to official figures released by the Massachusetts Gaming Commission late last week.
Gaming table revenues slumped rather dramatically, falling by more than $5.4 million. Slot machine revenues dropped but not as significantly as gaming table revenues.
Slot machine revenues declined by $2.1 million.
“It is impossible to know what exactly caused such a downturn in revenues. Encore is hard to get to. There have been a number of higher profile incidents reported by police. This could factor into it. Also, it is hard to know just who stayed away. Who didn’t comer to the casino who had been coming to the casino and caused its numbers to spike during the past three months?” said a casino analyst who wished to remain unnamed.
“Usually December is a good month with private parties and groups leading up to the holidays. Then business tends to slack off just a bit, picking up again in March. We will have to see what happens,” added the source.
MGM Springfield reported slightly higher earnings, from $21.4 million in October to $21.6 in November.
Plainridge Park Casino – a slot machine parlor – reported a slight decline to $10.9 million to $11.7 million.
Encore had been running up big month to month gains in revenues before this bump in the road.
The hotel has been nearly fully occupied Friday through Sunday for several months now.
The early days of the week remain problematic as does international travel which has been derailed again by a rise in COVID-19 and now the Omicron strain of virus which is spreading like wildfire causing anxiety and concern more than severe illness and deaths.
Steve Wynn built the casino believing it would attract an international gaming force of high rollers, Asians, preferably who attend school in Boston, their parents and businesspeople from all over the world looking for a five star casino experience.
This has never fully materialized. Wynn stock price is near its 52 week low as the new week began.
It was hovering around $80.
The 52 week low is $76.
The 52 week high was $145.
The stock has been buffeted by CEO Matt Maddox announcing his retirement from his $25 million a year job.
Also, the company’s right to do business in Macau, where it earns 75% of its revenues, is up for question as the Chinese government needs to renew its license in the coming year.