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The University of Massachusetts Donahue Institute has conducted a study on the impact MGM Springfield has had on the local economy, public services, and people two years after the casino first opened in August 2018.
What they found is that MGM did indeed generate more consumer spending - just not to the level MGM had forecast.
The Donahue Institute estimated that MGM visitors accounted for $66.3 million in new, off-site spending at local restaurants, shops, grocers, fuel stations, and more.
“One of the big findings we have is that 61.7 percent of patron spending was new to the state and would not have occurred had it not been for the casino,” said Thomas Peake senior research analyst at the UMass Donahue Institute in a statement.
In its first year, MGM Springfield created more than 2.500 jobs paying $85.2 million in salary and wages, the Donahue report found.
People coming in from out-of-state represented about 43 percent of the casino’s gambling revenue from Oct. 2018 to Sept. 2019, the report stated.
However, when MGM was selling Springfield on the casino, developers said MGM would create 3,000 new jobs and generate $35 million in revenue per month. The casino peaked in its first full month of operations at just under $27 million and has averaged only around $21.5 million ever since, according to CalvinAyre.com.
The COVID-19 pandemic and economic shutdown began in March 2020 and did have an impact on jobs and revenue at MGM.
To learn more about the effect MGM Springfield has had on the region, visit UMass Donahue Institute at donahue.umass.edu.
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