The financially insolvent Mohegan Sun waved the banner of
"Destination Resort Slot Barn"
and many flocked to rally around the May Pole.
No facts. No data. No consideration of the impacts and costs. Or even that pesky little 'infrastructure cost' that will bankrupt the Town.
And of course, Palmer refused to release or air the Casino Study Committee Report that disproved the financial bonanza. Let's not let facts get in the way of backroom promises!
So, now Mohegan Sun is promoting a Slot Barn - even the not-so-bright, after reviewing the trends across the country and elsewhere could have figured that out. Except for the ever-faithful cheerleader, The Republican!
Check this out - not my words --
Moody's Lowers Mohegan To Highly Speculative
DOW JONES NEWSWIRES
Moody's Investors Service moved the Mohegan Tribal Gaming Authority to highly speculative territory, saying the operator of casinos could find it difficult to refinance significant debt maturities without some impairment to bondholders.
What do you think might justify these polling results except that Mohegan Sun has not been the best neighbor? --
70% Oppose CT Gambling Expansion
Scaled-back casino plan prepared by Mohegan Sun
By JIM KINNEY
Business writer
SPRINGFIELD - The issue of expanded gaming is expected to come before the state Legislature soon, and when it does, the Mohegan Tribal Gaming Authority will push for a scaled-down version of their earlier proposed resort-style casino in Palmer.
Plans for that $600 million casino have shrunken in four years since it was first proposed from 3,000 slot machines to 2,500 slot machines in the plans today and from a theater with seating for up to 5,000 to a multi-use ballroom of 1,000 to 1,500 square feet, said Paul I. Brody vice president of Mohegan Gaming Advisors, during an editorial board meeting with The Republican Wednesday.
Did he say this with a straight face? 1,500 SQUARE FEET?
"This isn't a build-it-and-they-will-come business model anymore," Brody said.
"It is a very tightly-margined business and you have to watch how much you spend."
A law allowing casino gambling in Massachusetts failed in the waning days of the last legislative session. That bill included a resort-style casino - one with table games, a hotel and other amenities in addition to slot machines - for Western Massachusetts.
But Gov. Deval L. Patrick rejected last year's bill because it would not provide for competitive bidding for slot machines at race tracks. House Speaker Robert A. DeLeo, D-Winthrop, has such tracks in his district and has pushed hard to establish slots-only gambling at those tracks.
In Western Massachusetts, another entity has proposed a casino for the Wyckoff Country Club in Holyoke.
The recession has changed the gambling industry, said Mohegan Tribal Gaming Authority President and Chief Executive Officer Mitchell Grossinger Etess.
"Gaming is discretionary income," he said during the meeting.
The authority will look for investors if it gets permission to site a casino in Palmer.
"It is a different financial climate than 2004 and 2005," Brody said. "I don't think a lot of companies are financing projects off their balance sheet. I don't think that is a bad thing."
Etess said the Mohegans are being courted by potential investors in the Palmer project.
They said the organization is financially sound with its flagship casino in Uncasville, Conn., a facility in northeastern Pennsylvania and a deal in the works with an American Indian tribe in Washington state.
The company reported a 2.3 percent increase in earnings from $59.5 million in the fourth quarter of 2009 to $60.9 million in the fourth quarter of 2010. But much of that improvement came from cost cutting, according to a Mohegan news release. Gaming revenues fell from $309 million in the fourth quarter of 2009 to $307 million in the fourth quarter of 2010.
The company laid off 475 workers in Uncasville last year.
CT: Spectrum Gaming Report #12 Crime
CT: Spectrum Gaming Report #11 Low Wage Jobs
Mohegan Sun and Foxwoods: DUIs
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