The Encore Boston Harbor has only been in operation for a few months now, but it is already having a negative impact on the nearby Twin River Casino in Lincoln. The casino has seen stock prices plummet as well as announced the potential for layoffs due to their poor performance regarding the venues table games.
Lost Stock Value
Twin River is facing several issues at the moment, including a drop in stock value. The company recently saw a 37% loss in value from a 52-week high of $33.98. By closing on Tuesday, the stock had dropped to $21.07. The stock issue is just one of many the company is facing, with a portion of the blame being placed on the new Encore Boston Harbor casino.
The new casino in Everett is not only affecting the stock price but also employment. Twin River has stated that they plan on exploring with employees a voluntary reduction of hours first in order to try and lower the number of laid off employees. Right now, the company believes that around 30 table game supervisors will be affected.
The casino will be making changes to have supervisors on staff to cover the current traffic flow. The table games have not done well as of late. In July, table game revenue at the property saw a record drop. The casino was down to only $7.6 million in table game revenue earnings, which is 34% less than the year prior.
The drop in revenues has been attributed to the Encore Boston Harbor, a brand new $2.6 billion integrated resort. The casino opened at the end of June and was able to bring in $16.8 million in revenues during the very first week of operations. The casino continues to do well and seems to be taking some of Twin River foot traffic, which has hurt the Lincoln venue.
Encore Boston Harbor has been super busy with continual traffic flow. Players who frequented the Twin River facility in Lincoln are most likely traveling to the Everett casino to see what they have to offer.
On top of the low stock and potential layoffs, Twin River is also being investigated both on a state and federal level. Twin River Worldwide Holdings is under investigation on several different matters, though what exactly is unclear. One issue was recently solved as the company reached a settlement agreement involving 72 supervisors, with the company having to pay close to $800,000in back pay for overtime wages.
The investigations against the company come at the same time as an expansion effort. The group wants to grow in Rhode Island, but efforts may be stalled as the Twin River Casino was recently raided by the Attorney General and state police. The raid was part of an ongoing criminal investigation, yet no real information on the investigation has been provided.
On Twin River’s part, they have stated that they are cooperating fully with the state police and feel the focus in on activities of one of the company’s tenants.
The company also recently acquired two casinos from Eldorado Resorts, one located in Missouri and one in Mississippi. Twin River certainly has their hands full at the moment and much to worry about. With investigations, new properties and issues with venues in Massachusetts, it seems a ton is going on at one time.