Mohegan Sun mired in debt, well......maything helps, even a few million to keep up the payments.
Moody's Gives Thumbs Up To Mohegan's Atlantic City Deal
Mohegan may soon have a foot on Atlantic City's boardwalk.
Mohegan Tribal Gaming Authority announced this week in Atlantic City that its subsidiary Mohegan Gaming Advisors will enter into an agreement to manage the Resorts Casino Hotel, New Jersey's oldest casino.
Moody's Investors Service Wednesday called the Mohegan partnership "credit positive," noting that a success there could result in additional management contracts.
As the tribal gaming authority also eyes a casino license for a new location in western Massachusetts, the partnership provides an entrance into Atlantic City's competitive gaming landscape and makes it the first American Indian-run casino in the major gaming market.
"The timing is right," said Mitchell Etess, Mohegan's chief executive. "We have long looked at the Atlantic City market as an excellent opportunity, and with a solid commitment by state and local agencies to revitalize the area, the addition of notable partners and new offerings like Jimmy Buffett's
Margaritaville, this is the perfect time to align our brands."
Resorts announced plans in July to open a Margaritaville complex at the casino by May 2013.
Through the Mohegan partnership, which is pending regulator approval, Mohegan will market and promote offerings across its three locations — Mohegan Sun, Mohegan at Pocono Downs and Resorts Casino. The casino operator said that that guests would be able to use rewards points at any of the three casinos.
Gary Van Hettinga, Mohegan Gaming Advisors' president who will guide the Atlantic City casino's transformation, said that the company's management of operations will improve both guest and employee experience.
In late 2010, Resorts Hotel Casino was sold when its owner, Resort International, said it would not be able to pay its mortgage. Gaming executive Dennis Gomes and financial backer Morris Bailey bought the casino for $31.5 million. When Gomes died in February 2012, Bailey searched for a managing partner for the casino, which he found in Mohegan.
If regulators approve the partnership, Mohegan gaming operators have their work set out for them. Lower slot betting sent overall gaming revenue at Resorts down 7 percent in June, to $12 million. The slice of revenue from table games, about $3.3 million, was relatively stable.
http://articles.courant.com/2012-08-09/business/hc-mohegan-atlantic-city-deal-20120809_1_revenue-from-table-games-mitchell-etess-casino-operator
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