MGM Resorts has gone on the offensive against the tribal operators Foxwoods Resort Casino and Mohegan Gaming & Entertainment by directly targeting customers in their home base of Connecticut, upping the ante in fierce competition for market share in the US northeast.
MGM Springfield has launched a shuttle bus service to nine Connecticut cities and towns, as well as door-to-door driving services to Massachusetts and Connecticut.
The tribal operators, Foxwoods and Mohegan, for many years had only each other as major competitors, drawing guests from all parts of the US northeast.
MGM Springfield, which opened in August, is now giving them much stiffer competition. Based in Springfield, Massachusetts, its location to closer to the main populated areas of the region. By now reaching directly into Connecticut as well, MGM is attempting to poach customers from the tribal operators’ own backyard.
It is already having a financial impact. Mohegan has reported a decline in revenue and profitability in the July-September period, just as MGM Springfield was opening. Overall revenues declined 3% to US$275 million in the quarter and profits fell off 22% to US$55 million.
Mohegan President and CEO Mario Kontomerkos acknowledged that the dip was “in part due to the impact of a recent competitive opening in the Northeast gaming market.” (AGB Nippon)