New Casino Seen Spurring New England Competition

The addition of Plainridge Park Casino, the first to open in Massachusetts, has heated up the competition for gamblers, according to Fitch Ratings.

Penn National Gaming owns Plainridge, which sits near the Rhode Island line.

Fitch analysts recently visited Plainridge as well as Twin River in Lincoln, R.I. and the two tribal casinos in Connecticut, Foxwoods and Mohegan Sun.

"The trip confirmed our view that Plainridge will deliver solid return on investment at least in the first three years until Wynn Everett [outside Boston] opens in late 2018," Fitch said in a statement July 30.

According to Fitch, Twin River will continue to get considerable business from Massachusetts, though less and at a lower margin.

"We anticipate only modest impact on the Connecticut casinos, but expect Foxwoods to be hurt more than Mohegan Sun given its closer proximity," it said.

Fitch estimates Plainridge will generate $176 million and $44 million of annual revenue and EBITDA, respectively, until Wynn Everett opens. This represents 18% return on investment and will enable Penn National to cover more than 60% of project cost before additional competition comes online.

 

 

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