Boston, MA 06/17/2014 (wallstreetpr) – Massachusetts Gaming Commission (MGC) approved the license of MGM Resorts International (NYSE:MGM) to operate a resort casino in Springfield. The Commission’s decision came after extensive background investigations and hearings for last two years. The approval of MGM Springfield is the first to get a license in the Commonwealth.
MGM Springfield
MGM initiated the process for a resort casino at Springfield in August 2012 and designed for an investment of $800 million. Both MGM and the City of Springfield signed an agreement to pay an upfront payment of $15 million through installment during the construction phase. The City will receive payment of $25 million annually once it starts operating. The MGM Resorts International (NYSE:MGM) expects to open the service by 2017.
The place locates on ~14.5 acres of land that includes 25 story hotels with a capacity of 250 rooms having world class facilities, 125K square feet of gaming space, and 55K square feet for retail and restaurant and also have multi-level parking facility.
Opportunity For Springfield
MGM Resorts International (NYSE:MGM) is looking forward to continuing work with the residents and businesses of Springfield. It helps to enhance the urban life and also create an opportunity in business and economy within the region.
The Company expects to bring around 3,000 permanent jobs and approximately 2,000 construction jobs in the downtown of Springfield. The Company plans to hire 90% of its workforce from the region including 35% from the city of Springfield. In addition, MGM also signed an agreement to provide financial support to the neighboring communities.
Risk Factors
All the casino projects in the Commonwealth continue to witness threat from the ballot repeal of the casino law. MGM Resorts International (NYSE:MGM) entered into an agreement with MGC for the approval of resort casino (single category) license for Western Massachusetts (Region B). The repeal efforts are yet to resolve the issue that may affect the license as well as related fees paid to the City of Springfield.
