Gambling Glory Days Over?

The CT casinos are struggling with debt, laying off workers and Region’s health tied to casinos would lead one to believe there's a chance of recovery. Not!

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This is the economic legacy of casinos as failure to create economic engines.

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It's sad that some still believe in spite of the experience of many others.

Something for Nothing and Casino Gambling didn't work for global investments and won't work to create sustainable economies.

Not morals! Just economic facts.

The glory days of huge gaming profits and unprecedented growth came to a crashing halt last year, and the impact is still being felt today.

The financial well-being of the two gaming institutions is an important factor in the region’s economy, particularly because the two tribes are the largest employers in Eastern Connecticut. Both have been forced to reduce their work force and take other cost cutting measures in response to the slumping economy.


The Mohegan Tribe appears to have a slightly better financial footing than the Mashantuckets, whose debt is a major concern for investors. The most recent financial report showed the Mohegan gaming operations reporting a profit in the third quarter. But that profit is more a result of less than stellar third quarter earnings the year before, and the cost cutting measures taken this past year.

But of more immediate concern is Standard & Poor’s recent decision to cut the Mashantucket’s credit rating, a move that raised concern among the financial community — and could very well affect the ability of other tribal gaming operators, such as the Mohegans, from obtaining funding at favorable interest rates in the future.

That’s an important consideration for the Mohegans as they continue to eye the prospects of expanded gaming opportunities in Massachusetts. But it’s not just the financial impact of a slow economic recovery that tribal leaders will have to contend with.

Both tribes have fought state efforts to impose new rules and regulations, such as this year’s second attempt to impose a full smoking ban, as well as potential state competition for gaming revenue, such as the proposed — although later abandoned — idea of expanding the state lottery with the introduction of Keno games.

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Casino slump could pinch state revenues

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A continued downturn in slot machine play at Connecticut's two casinos could add millions in red ink to a $38 billion state budget that's already running a deficit.

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Although most attribute the drop in Connecticut's slot revenue to the ongoing recession, increased competition from slot machines in Rhode Island and the Empire City Casino at Yonkers Raceway in New York is also believed to be cutting into the take, experts generally agree.

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The Mohegan and Pequot Indian tribes are not the only casino owners facing reduced gaming revenue. Slot and table game revenue in Atlantic City and Las Vegas also dropped significantly during 2009 and has yet to recover, indicating the recession is not over.