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Date: 12/27/2022
SPRINGFIELD – Following years of preparation and several hurdles, MGM Springfield received a sports betting license from the Massachusetts Gaming Commission on Dec. 19. MGM Springfield joined Encore Boston Harbor as the only casinos in the state to be granted a sports betting license at the time. Since then, Plainridge Park Casino received a temporary Category 1 sports wagering operator license.
Crossing the sports betting license finish line was a complex process for MGM Springfield. After initially missing the deadline for the sport’s betting application, the casino originally met with the gaming commission on Dec. 7. MGM Springfield President Chris Kelley and his team presented their sports wagering pitch.
“This is without a doubt a milestone moment among many recently, but it’s worthy to point out that this has been a journey,” said Kelley during the Dec. 7 meeting.
Kelley showcased his vision for sports betting in MGM Springfield. He highlighted the development of a “several million dollars” sports betting lounge constructed in August 2021. The lounge includes stadium seating and a 45-foot-long viewing wall comprised of several different TV screens.
“It’s something we believe creates an unparallel experience for guests in this region,” said Kelly.
Kelley also highlighted the betting window constructed within the lounge space. He viewed the connectivity of sports betting within the lounge space as a potential economic driver for MGM Springfield’s other amenities.
“When we have guests engaged with this amenity, they often engage with other elements of the resort at the same time,” said Kelley.
Kelley noted how the impacts of sports betting will be embedded throughout MGM Springfield. He highlighted the development of a VIP viewing lounge developed in TAP Sports Bar as another opportunity to heighten the guest experience stemming from sports betting.
“This is an opportunity to bring small groups of people together and create a heightened experience for them in this space,” said Kelley.
The implementation of MGM Springfield’s sports book will lead to the hiring of an additional 15 employees, according to Kelley. MGM Springfield is expected to launch their sports book in 2023.
Ultimately, the Massachusetts Gaming Commission decided to delay MGM Springfield’s sports betting license request on Dec. 7. The delay was caused by concerns sprouted from MGM Springfield’s unclear reliance upon MGM’s sports betting app, BetMGM. BetMGM also underwent review from the Massachusetts Gaming Commission.
Massachusetts Gaming Commissioner Nakisha Skinner highlighted this concern in her remarks.
“The application doesn’t explicitly detail the relationship between MGM International and BetMGM … I’m not terribly pleased with much of the application referencing the BetMGM application,” said Skinner during the Dec. 7 meeting.
The MGM Springfield team met again with the gaming commission on Dec. 19.
One topic introduced during that meeting was the civil lawsuit filled by Chelan Brown against MGM Springfield. Brown, who formerly worked as MGM Springfield’s diversity manager, said she experienced discrimination and retaliation under the stewardship of former MGM Springfield President Michael Mathis.
Brown spoke about her lawsuit during a press conference outside of MGM Springfield on Dec. 14. One of Brown’s claims included Mathis submitting falsified diversity hiring reports to the Massachusetts Gaming Commission.
“It had become clear to me that reports provided to the Massachusetts Gaming Commission regarding diversity goals and certain vendor contracts were not being reported accurately,” said Brown during the Dec. 14 press conference.
When asked about the lawsuit and its allegations, MGM Springfield legal counsel Jed Nosal denied the allegations.
“We deny all allegations,” said Nosal, who said MGM expects to “vigorously defend itself” if the case goes to trial.
The Massachusetts Gaming Commission then further discussed the dynamic between MGM Springfield and BetMGM. Nosal shared that BetMGM is a joint venture between MGM International and Entain. That means MGM International possess 50 percent ownership of the sports betting phone application compared to its complete ownership of properties like MGM Springfield.
After hours of extensive deliberation between the Massachusetts Gaming Commission and MGM Springfield, the gaming commission unanimously approved MGM Springfield’s sports betting license request. BetMGM also received a sports betting license from the Gaming Commission on Dec. 19.
In his closing remarks, Kelley considered the approval a “gift” to MGM Springfield and the community.
“As its been referenced on the calendar, it’s aptly-timed for the gift of this decision, what it means for this city, what it means for the community and what it will ultimately mean to the state … we are extraordinary excited about in the not-too-distant future transitioning an extraordinary sports lounge into a sports book,” said Kelley.
Local opposition
In the aftermath of the decision, state Rep. Angelo Puppolo issued a press release criticizing “MGM Springfield’s caviler and lackadaisical behavior” throughout the sports betting licensing process.
“One of the most important financial supplements that MGM Springfield has hounded the legislative delegation about is sports betting and yet they can’t even file that application on time. To me that speaks volumes to their full commitment to the area and to our residents, and I question the management here,” said Puppolo in his press release.
Puppolo called for MGM Springfield to be fined $250,000 for submitting their application late to the Massachusetts Gaming Commission. He said the Gaming Commission should have enforced that MGM Springfield pay the fine, along with delaying MGM Springfield’s sports betting application until speaking with the state’s legislative delegation.
“Why reward MGM Springfield for bad behavior? It’s inexcusable to file such an important application late and then to reward them for being late is unconscionable – every other in-person application was filed on-time – they should be penalized. If people file income taxes late, property taxes late or credit card payments late they are penalized – so shouldn’t MGM Springfield,” said Puppolo.
Puppolo also highlighted other concerns stemming with MGM Springfield’s operation, including not honoring their host community agreement with Springfield. Some promises, such as providing over 3,000 jobs and opening all operations again in the aftermath of the coronavirus pandemic, have not been executed. Currently, MGM Springfield boasts a staff of roughly 1,300 employees.
“MGM has been a bad bet for the area. The payoffs have been worse than playing roulette and that is not right,” said Puppolo.
Readers can learn more about MGM Springfield at https://mgmspringfield.mgmresorts.com/en.html.