Twin River Struggling Due to Encore Boston Harbor Competition
Twin River Worldwide Holdings is the only operator in the state of Rhode Island when it comes to casino gambling. The Tiverton and Twin River casinos are popular gaming facilities that offer the only option for casino players in the state. While they have no competition in Rhode Island, they are struggling due to outside competition. After reviewing their third quarter financial earnings, the company is preparing to reveal a negative outcome due to issues regarding the Encore Boston Harbor in nearby Massachusetts.
Loss of Revenues
Rhode Island gaming regulators have released the gross gaming revenue numbers for the state, with Twin River Tiverton and the Lincoln facilities dropping 9% during the latest quarter. The time frame represents the first full quarter in which the Encore Boston Harbor has been in operation. The Twin River group is finally getting an idea as to how their property will be affected with the new casino now offering services.
The Encore Boston Harbor is operated by Wynn Resorts who reportedly has spent a good bit of cash on promotions and marketing. They are driving traffic to their slot business and remain at elevated numbers as well as revenues and visitors are concerned. Analysts feel that the strong performance of Encore will affect the margin performance of the two Twin River properties over the next few quarters.
Since opening, the Encore Boston Harbor has been a formidable opponent. The casino has affected not only other gaming venues in Massachusetts but also the two casinos in Rhode Island. A decrease in revenues has been seen at the MGM Springfield as well as other properties. While they are doing well, it is not expected that the Encore will reach the expected $800 million in GGR during their first year of operations.
Twin River Worldwide Holdings is rolling with the punches and trying to come up with ways to see a turnaround. For months now, the company has struggled with ways to improve performance. Back in the summer, the company reported a drop in table game revenues of 34% lower than the previous year during the month of July.
By August, the table game revenues had dropped to 40% below the previous year’s numbers. Without a solid plan of action, the decrease in revenues may only continue. Of course, a drop was expected due to the opening of the Encore and hopefully there will eventually be a levelling out of revenue numbers.
Thankfully, the brand is doing well in other areas like Delaware. The company operates Dover Downs and have seen a nice payoff since completing recent upgrades. The venue offers both online gaming and retail options.
Perhaps when the brand officially releases the Rhode Island figures, they will also provide a plan of action to see a turnaround. Only time will tell if the properties in the state will continue to be affected by the big business taking place at the Encore Boston Harbor.