Mohegan Tribe Reports Record Profits

  In the three months of April, May and June the Tribe earned $321.1 million, a 3.8 percent increase the corresponding period in the prior year from gambling while slots brought in $227.7 million and table games dealt $89.9 million in revenue. Overall, net income from operations was up 11.3 percent to $4.4 million.

On a per patron basis, Mohegan Sun an average of $115 per visit during the quarter.

“Obviously, you know, this is just a great quarter for us overall and obviously Mohegan Sun,” Michael Etess the Gaming Authority’s CEO told analysts on a conference call this week. “It was a record third quarter for gaming revenues, a record third quarter adjusted EBITDA of $96.5 million and … we continue to gain market share here in Connecticut currently at about 53%. We continue to capture more and more of the market here as our customers become more and more pleased with what’s happening. “

According to Etess, the success of Mohegan Sun is attributable on a variety of fronts including the utilization of cutting edge data warehousing tools, strong performance of the Mohegan Sun Arena which is bringing in top acts such as Cold Play and Jimmy Buffet and is also home to the WNBA’s Connecticut Sun. The property also debut a new high limit table game suite the hotels 36th floor, which is getting strong feedback from the casino’s upper echelon customers. This month a new food court concept is scheduled to open.

However, going forward the Authority is quietly voicing increased uncertainty over the long term viability of its operations in Pennsylvania. According to the Tribe’s Chairman Bruce “Two Dogs” Bozsum, the state’s take from the casino in regards to taxes is a rather onerous 55 percent. There is now a possibility the tax rate would increase, which could prevent the Tribe from building permanent facility at the Pocono Downs site. 

Bozsum told analysts they are “still vitally concerned over the local share tax effect and its impact on our return on our investment at Pocono Downs. Our efforts will focus on favorably resolving this issue and we will continue exploring all possible options regarding the property.”

 

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Work has stopped and the Tribe is holding off on some of its soft costs and slot machines at the temporary site and a job fair has been cancelled. So far MTGA has spent between $35 and $36 million on Pocono Downs.

The MTGA is also advising the Cowlitz Tribe in Washington on a casino it would like to build. Etess said they are working with the Bureau of Indian Affairs and will file the requisite paperwork to begin work on the property he said has an “amazing location. It makes Mohegan Sun here seem like it’s off the beaten path.”

In Kenosha, Wisconsin MTGA is working with the Menominee tribe on a casino concept at the Dairyland Racetrack. However, pending legislation may prevent this project from breaking ground if new rules are passed limiting new casinos to authorized tribal land.

Analysts also tried to get more information out of Etess on the next Mohegan Sun expansion to no avail.

Etess said work is progressing on a master plan with design firm Wimberly Allison Tong and Goo and that the main goal of the plan is to ensure it is fully integrated with the resort. He acknowledged the demand for hotel rooms far exceeds the property’s supply, but refused to drop any hints regarding the scope of the next expansion project at this time.


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