IT'S NEARING A YEAR SINCE THE OPENING OF MGM SPRINGFIELD.
THE CASINO MADE A BIG SPLASH WHEN IT LAUNCHED LAST AUGUST,
AND HAS BEEN A STEADY PRESENCE IN DOWNTOWN EVER SINCE.
RAY HERSHEL SAT DOWN WITH MGM SPRINGFIELD PRESIDENT MICHAEL
MATHIS TO FIND OUT HOW BUSINESS HAS BEEN, WHAT CHANGES THEY'VE
MADE ALONG THE WAY, AND HIS THOUGHTS ON THE CASINO'S FUTURE
AS IT APPROACHES THE ONE-YEAR MARK.
>> SOMETIMES IT FEELS LIKE IT WAS JUST YESTERDAY WE OPENED AND
SOMETIMES IT FEELS LIKE IT'S BEEN A BUNCH OF YEARS.
YOU KNOW, IT'S -- WE'RE REALLY HAPPY WITH HOW WE'VE DONE SO
FAR.
OUR VISITATION IS REALLY HIGH AND THE DIVERSITY OF OUR
VISITATION -- AT THIS POINT WE'VE HAD OVER 3 MILLION
VISITORS AND FROM ALL 50 STATES AND I THINK THE APPEAL OF THE
PROJECT AND THE UNIQUE DESIGN AND THE MGM FLAG HAVE BROUGHT
NEW -- CERTAINLY NEW CUSTOMERS TO MARKET SO REALLY EXCITED
ABOUT THAT.
I THINK OUR FOOD AND BEVERAGE, OUR HOTEL -- A LOT OF NONGAMING
AMENITIES, ENTERTAINMENT WERE REALLY WELL RECEIVED AND WE'RE
HAPPY WITH THAT.
THE GAMING SIDE IS A WORK IN PROGRESS, YOU KNOW, WE'VE ALWAYS
VIEWED IT AS A 3-YEAR RAMP-UP TO GET STABILIZED AND THAT'S PRETTY
COMMON IN THE INDUSTRY.
WE WENT THROUGH OUR FIRST NEW YEAR'S EVE AND THROUGH OUR
FIRST WINTER AND SPRING AND TRYING TO FIGURE OUT HOW TRAFFIC
PATTERNS WORK AND HOW CUSTOMERS RELATE TO.
WE GET NEW CUSTOMERS EVERY DAY GROWING OUR DATABASE AND I'M
EXCITED WHERE WE'RE AT.
>> I UNDERSTAND ABOUT HALF OF THOSE CUSTOMERS ARE FROM
MASSACHUSETTS IF I'M CORRECT.
WHAT DOES THIS TELL YOU IN TERMS OF, YOU KNOW, OF THE CLIENTELE
THAT ARE COMING INTO THE CASINO?
IS YOU PROJECTED AND EXPECTED IN
HALF OF THE BAYSTATE AND THEN COMING IN THE STAY AND GOING
HOME AS OPPOSED TO STAYING TIME IN THE CITY?
>> YES.
YOU KNOW, I THINK THAT BREAKDOWN IS RIGHT ALONG WHAT WE HAD HOPED
FOR BECAUSE WE ARE LOOKING TO SERVICE OUR LOCAL MARKET BUT
ALSO DRIVE NEW VISITATION ACROSS STATE LINES AND WE GOT GREAT
CUSTOMER BASE IN CONNECTICUT, NEW YORK, NEW JERSEY,
PENNSYLVANIA.
I'M SURPRISED WHEN YOU WALK THE GARAGE HOW MANY DIFFERENT
LICENSE PLATES YOU SEE SO IT'S A COMBINATION OF A SORT OF DRIVIN
LOCAL MARKET AND PULLING PEOPLE FROM FARTHER OUT.
I THINK THAT BREAKDOWN BODES BECAUSE WE CAN CONTINUE TO BUILD
THAT DATABASE AND BRING NEW PEOPLE IN THE MARKET AND WE'RE
LOOKING TO GROW -- GROWTH EXISTING GROUP -- GROW THE
EXISTING GROUP AND BRING FLU VISITORS FOR HOUSING AND
HOSPITALITY.
>> GETTING BACK TO THE REVENUE BASE, MARCH WAS A GOOD MONTH FOR
YOU.
I THINK YOU WERE UP 19% FROM THE PREVIOUS MONTH.
IT'S BEEN SORT OF AN UP AND DOWN SITUATION SINCE LAST AUGUST
WHERE YOU'VE HAD SOME BETTER MONTHS THAN OTHERS.
HAD YOU EXPECTED THAT UP AND DOWN OR ARE YOU -- OR ARE YOU
SUSPECTING A CONTINUAL INCREASE IN REVENUE?
>> YOU KNOW, OUR PATTERNS ARE IN SOME WAYS TYPICAL OF WHAT YOU
SEE THROUGHOUT A SEASON, SO IF YOU LOOK AT THE EXISTING MARKET
BEFORE WE EVEN CAME IN, YOU KNOW, THE STRONGEST MONTHS ARE
MARCH AND MAYBE THE SUMMER.
THE WEAKER MONTHS ARE, YOU KNOW, THE WINTER.
LIKE A FEBRUARY -- JUST BY FUNCTION OF THE NUMBER OF DAYS,
YOU'RE GOING TO SEE -- YOU'RE GOING TO SEE FLUCTUATIONS.
WE LOOK TO GROW EACH MONTH REALLY THROUGHOUT THIS 3-YEAR
RAMP-UP SO IN SOME WAYS-YEAR 1 IS A BASELINE AND THEN YOU TRY
TO IMPROVE MONTH AFTER MONTH AND YEAR-OVER-YEAR FOR THAT PERIOD
SO I'M EXCITED HOW MONTH TURNED OUT BUT YOU'RE GOING TO SEE SOME
FLUCTUATIONS TURN OUT AND THE COMPETITION IF THEY END UP DOING
A LOT OF PROMOTIONS AND SPENDING A LOT OF MONEY SORT OF BUYING
THE BUSINESS THEN WE LIKE HAVE A WEAKER MONTH BUT AND VICE VERSA
WE'RE GOING TO HAVE A TREMENDOUS AUGUST.
WE HAVE FOUR AEROSMITH SHOWS SO THAT'S AN EXAMPLE OF WHAT WILL
BE A REALLY LARGE MONTH AND WE SORT OF, YOU KNOW, PROGRAMMED IT
ACCORDINGLY.
>> HOW ABOUT THE PROGRAM BASES WHAT YOU PROJECTED.
I THINK YOU GOT 500 EMPLOYEES FULL AND PART-TIME AND I THOUGHT
PROJECTIONS INITIALLY MIGHT HAVE BEEN AROUND THE 3,000 MONTH.
IS THAT STILL ON TRACK OR, YOU KNOW, WHAT'S THE EXPLANATION FOR
THE EMPLOYEE BASES.
IS IT STABLE NOW OR WILL IT BE INCREASING?
>> WE'LL BE GROWING IT.
THAT'S SIMILAR TO OUR REVENUES I THINK IT'S DIFFICULT TO LOOK AT
AS A SNAPSHOT.
WE APPROXIMATED 3,000 AND THAT'S REALLY A CAMPUS-WIDE NUMBER SO
WHAT OUR DIRECT EMPLOYEE NUMBERS DON'T COUNT ARE THE TENANT
EMPLOYEES AND REGAL MOVIE THEATER, SOME OF OUR OTHER
RETAILERS, THEIR EMPLOYEE NUMBERS SHOULD GET FACTORED INTO
THE CAMPUS-WIDE NUMBER AND WE CONTINUE TO GROW SOME OF OUR
PROGRAMMING SO OUR SUMMER SERIES, FOR EXAMPLE, WE'LL HAVE
A LOT MORE EMPLOYEES SERVICING OUR CONCERT SERIES
AND OUR OUTDOOR EVENTS AND WE'RE ALWAYS
LOOKING TO GROW IT BECAUSE THAT'S A FUNCTION OF VOLUME AND
HOVER AROUND THAT 3,000 BUT IT'S GOING TO BOUNCE AROUND A LITTLE
BIT FROM TIME TO TIME.
>> I KNOW YOU'VE LEARNED THINGS, TOO, SINCE THE CASINO OPENED AND
YOU'RE VERY TUNED IN TO WHAT THE CUSTOMER BASE IS SAYING IN TERMS
OF SUGGESTIONS.
WHAT HAVE YOU LEARNED FROM YOUR CUSTOMERS SINCE I OPENED AND CAN
YOU TALK ABOUT SOME OF THE CHANGES THAT HAVE BEEN IMPLEMENT
AS A RESULT OF THAT CUSTOMER FEEDBACK.
>> IT'S FUNNY, WE THINK WE'VE DESIGNED EVERYTHING AND
ANTICIPATED EVERY NEED AND THE CUSTOMER WILL TELL YOU DAY ONE
WHAT YOU GOT RIGHT AND WHAT YOU DIDN'T SO WE'VE DONE A COUPLE OF
CAMPAIGNS CALLED YOU SAID IT WE DID IT AND IT'S REALLY A
NOTIFICATION TO THE CUSTOMERS THAT WE GOT YOUR FEEDBACK AND
SOME ARE THE CHANGES THAT WE'VE MADE BASED ON THE MADE AND IT'S
AN SIMPLE AS EXTENDING OR CHANGING OPERATING HOURS FOR OUR
RESTAURANTS.
WE ADDED A BRUNCH, FOR EXAMPLE, OVER THE WEEKEND BECAUSE THERE
WAS A NEED FOR SOMETHING BEYOND OUR TAP AND OUR SOUTH END
MARKET.
WE'VE ADDED DIFFERENT TABLE GAMES AND SLOT MACHINES TO THE
FLOOR.
SOME OF THESE ARE REALLY UNIQUE, INTERESTS, CUSTOMER DEMANDS THAT
ARE UNIQUE TO THE MARKET AND WE'VE CHANGED UP THE MIX AND PUT
NEW GAMES OUT THERE.
WE'VE CHANGED TABLE LIMITS, FOR EXAMPLE.
INITIALLY, WE KEPT THEM HIGH BECAUSE OF THE HIGH DEMAND BUT
AS WE STABILIZED WE BROUGHT IN LOWER LIMITS AND ALLOWED
DIFFERENT TIMES OF THE DAY FOR PEOPLE TO BE ABLE TO GET ON THE
TABLE IN THE DOOR.
>> SYMPHONY HALL WHICH MGM IS SORT OF TAKING OVER.
WHAT'S THE VISION FOR SYMPHONY HALL MOVING FORWARD?
>> I'M REALLY EXCITED ABOUT TAKING OVER THAT VENUE IN TERMS
OF MANAGEMENT.
WE KNEW ENTERTAINMENT WAS IMPORTANT.
I THINK WE'RE REALIZING HOW IMPORTANT ENTERTAINMENT IS AND,
YOU KNOW, WILL LOAN IS THE MANAGEMENT TEAM PROBABLY A
LITTLE TOO QUIET IN TERMS OF ENTERTAINMENT AND WE FELT IT IN
THE NUMBERS AND BRINGING A EXCELLING ROSTER OF
ENTERTAINMENT AND THE SIZE OF THE VENUES MATTER IN TERMS OF
THE ACTS YOU ATTRACT AND MAKING IT FINANCIAL AND HAVING A
2500-SEAT ENVIRONMENT IS ANOTHER OPPORTUNITY TO BRING
ENTERTAINMENT WE'VE GOT A GREAT ROSTER NOW THAT WE'LL TAKE OVER
MANAGEMENT.
>> TALK ABOUT A CONNECTICUT CASINO BETWEEN HEART FIELD AND
SPRINGFIELD.
ARE YOU CONCERNED ABOUT THAT?
>> YEAH, I THINK LIKE ANY COMPETITION WE CERTAINLY MONITOR
IT, YOU KNOW, THIS IS A VERY COMPETITIVE MARKET.
YOU'VE ALREADY GOT OTHER BUSINESSES PERHAPS GOING TO BE A
BOSTON REALLY STRONG COMPETITOR.
RIVERS, SKENECKNEY SO THIS IS A REALLY COMPETITIVE MARKET WE
REALLY VIEW IT AS TWO DIFFERENT PRODUCTS EVEN WHAT THEY'RE
PROPOSING ISN'T THE FULL MIXED USE RESULT THAT THIS WOULD BE
WITH ENTERTAINMENT AND DINING AND ALL THE THINGS THAT DOWNTOWN
ENTERTAINMENT SO IT MAY -- WE MAY COMPETE FOR CUSTOMERS ON THE
MARGINS BUT AS CLOSE AS WE ARE I THINK WE CAN MAKE A EXCELLING
CASE TO CONTINUE ON FOR ANOTHER 10 MINUTES AND BE AS A
FULL-FLEDGED RESORT.
>> A FINAL QUESTION BEFORE WE LEAVE THAT IS WHAT CAN PEOPLE
EXPECT NOW MOVING FORWARD THROUGH THE SUMMER?
WHAT CAN THEY LOOK FORWARD IN TERMS OF THE MGM CASINO?
>> YEAH, A REALLY GREAT ACTIVE OUTDOOR PROGRAM AND THAT'S WHEN
OUR PROPERTY REALLY SHINES.
WE'RE STARTING FOOD TRUCK FRIDAYS, FOR EXAMPLE, IN THE
BEGINNING OF MAY AND AS A CHANCE TO SHOW OFF NOT ONLY ALL THE MGM
DIFFERENT FOOD OFFERINGS IN OUR FOOD TRUCKS BUT WE'RE INVITING A
BUNCH OF REGIONAL FOOD TRUCKS AND LOCAL FOOD BEVERAGE
OPERATORS SO I'M LOOKING FORWARD TO A GREAT ACTIVE OUTDOOR
PROGRAM NOT JUST ENTERTAINMENT BUT TOURNAMENTS, FARMERS MARKETS
ALL THOSE FUN THINGS TO DRAW PEOPLE THAT AREN'T YOUR CASINO
CUSTOMER BECAUSE THAT'S WHAT THE PROJECT WAS DESIGNED TO DO.
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