Plainridge Park Casino revenue down 19% in Q3 due to additional competition in Massachusetts

The head of Plainridge Park Casino —Plainville, Massachusetts— acknowledged Thursday that a new casino in Everett has cut into his revenue, but he said he doesn’t plan any major changes to the way Plainridge does business.

“We’re not going to get into an arms race,” General Manager Lance George said, speaking to the Massachusetts Gaming Commission at Plainville Town Hall, as reported by The Sun Chronicle. He said revenue was down nearly $8.7 million last quarter, as it fell from nearly $45 million to $36 million, representing a 19 percent decline.

George told the commission the slump is due to the additional competition from the newly opened Encore Boston Harbor in Everett. He said there is always a rush to a new casino when it opens and Plainridge knew there would be an impact.

In response to a question from commission member Gayle Cameron about a possible change in business strategy, George said Plainridge expects the losses to lessen after the rush to Encore settles. He said he expects some lost customers to return to Plainridge while others might divide their time between Plainridge and Encore. Encore will likely also tone down its aggressive marketing once it gets established, he said.

“We’ll let it work its way out and not change dramatically,” George said, emphasizing Plainridge is a much smaller casino than Encore. He did not touch on the fact that Plainridge only offers slot machines while Encore and other casinos have far more gambling options.

Local legislators, including state Rep. Betty Poirier, R-North Attleboro, have filed a bill to allow tables games such as blackjack at Plainridge, but the House has yet to take up the measure.

In addition to Encore, Plainridge has new competition from a Twin River facility in Tiverton and a MGM casino in Springfield. George told the commission that Plainridge still views Twin River in nearby Lincoln as its main competition.

His comments came at a commission meeting that was held in Plainville, home of Plainridge, rather than the board’s usual site in Boston. Plainridge was the state’s first legal casino and is also home to a harness horse racing track.

In other action, the commission approved another season of harness racing at Plainridge for 2020, running from April through the end of November; learned that Lottery ticket sales at Plainridge declined by 8.6 percent; voted to increase by 5 percent the split Plainridge receives from a 9 percent horse-development-fund tax on slot machines.

Research updates impacts of Plainridge Park Casino

Moreover, a University of Massachusetts Amherst researchers from the Social and Economic Impacts of Gambling in Massachusetts (SEIGMA) said that the Plainridge Park Casino has created job opportunities for the unemployed and underemployed, among other economic benefits, without an increase in problem gambling, as reported by Phys.org.

Three new reports, which are part of the most in-depth and comprehensive investigation ever undertaken into the impact of introducing casino gambling, were presented Thursday to the Massachusetts Gaming Commission in Plainville. The first report on the social and economic impacts from 2013 to 2018 found largely positive effects from the state's only slot parlor. The SEIGMA team summarized some of the findings in two fact sheets on traffic and public health impacts.

No change in the rate of problem gambling was detected, likely due to a pre-existing high rate of gambling by Plainville-area residents at nearby casinos in Rhode Island and Connecticut, in operation since the early 1990s.

Researchers also discussed results from a survey of the slot parlor's new employees in 2017-2018 and released an economic impact report covering the slot parlor's first four years of operation.

Plainridge Park revenues rose 6.25 percent in the three years it was operating as the sole casino in the state, from about $160 million in fiscal 2016 to $170 million in fiscal 2018. In fiscal 2019, after the opening of MGM Springfield, revenues dropped slightly to $169 million.

The number of Plainridge Park Casino visitors has decreased each fiscal year, though the average gross gaming revenue per patron has increased by 27 percent, driving the rise in revenues. "While the economic impacts of Plainridge Park Casino to date are clearly positive, it is somewhat concerning to see an increase in spending per patron because it suggests that a smaller number of individuals are spending more," says Rachel Volberg, principal investigator of the SEIGMA study and research professor in the UMass Amherst School of Public Health and Health Sciences. "If this increase in spending is affecting patrons' ability to meet other financial obligations, it would suggest the need to raise awareness about the importance of keeping gambling entertaining and not spending more than one can afford."