MGM Appoints Chris Kelley as President of Massachusetts Casino

Casino operator MGM Resorts International has tapped an experienced industry leader to get at the helm of its MGM Springfield resort as the property has been grappling with disappointing gaming revenue very much for the entirety of its existence.

MGM announced Tuesday that Chris Kelley will serve as President and Chief Operating Officer of the company’s Springfield hotel and casino resort. Mr. Kelley replaces Michael Mathis, who steered the $960 million property through its development and opening in August 2018.

Mr. Kelley has extensive experience in the US casino and hospitality industry. Most recently, he served as President of MGM Northfield Park near Cleveland, Ohio. MGM finalized the acquisition of what had formerly operated as Hard Rock Rocksino Northfield Park in the spring of 2019.

Mr. Kelley oversaw the transition of the former Hard Rock-branded facility into an MGM-operated one.

The new MGM Springfield President had also served as Vice President and Chief Financial Officer of MGM Grand Detroit and before that had worked at Viejas Casino & Resort in San Diego for just under two decades.

As for Mr. Kelley’s predecessor, MGM announced Tuesday that Mr. Mathis would become Senior Vice President of Business Development at the company and would report to MGM President Bill Hornbuckle. Mr. Mathis will return to the casino giant’s Las Vegas headquarters.

Declining Revenue

MGM Springfield opened doors in downtown Springfield in August 2018 as the first full-blown commercial casino resort on the territory of Massachusetts. Before the property, which cost $960 million to build, was launched, MGM executives told the Massachusetts Gaming Commission that casino portion of the complex would generate a monthly average of $34.8 million in gross gaming revenue.

However, MGM has never really met those initial revenue projections. The property generated a monthly average of $21.54 million in revenue from its table games and slot machines during its first 16 full months of operation.

Earlier this month, MGM Springfield reported gross gaming revenue of $18.9 million for December – its worst month yet. The disappointing revenue report followed nearly as disappointing numbers in November when the casino floor of the downtown Springfield resort grossed just $19.9 million.

In comparison, the property generated gambling revenue of $21.6 million in December 2018. It reported its highest revenue in September 2018, its first full month of operation, when its table games and slot machines grossed $26.9 million.

MGM Springfield’s failure to meet revenue projections also resulted in the property failing to employ the previously promised 3,000 people. It currently has about 2,500 employees. And promises that commercial development would take off around the 17-acre site of MGM Springfield have too failed to materialize.

Bringing in an experienced hand like Mr. Kelley, it seems that MGM is looking to take proper actions and finally reverse its Springfield property’s declining revenue.

Source: MGM names new executive to lead Massachusetts casino

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