Gambling Market Saturation and Excessive Debt define the Northeast Gambling Market as reports of declining revenues of the Connecticut facilities indicate.
Don't bet on Massachusetts doing any better!
October 15, 2012
CT's Foxwoods, Mohegan post Sept. slot losses
Connecticut's two casinos each lost more than $5 million on slots in September amid mounting out-of-state gambling competition.
Foxwoods Resort Casino in Mashantucket said Monday it generated $46.3 million in slot revenues in September, a 13 percent decrease from the $53.2 million in slots revenue in the same month last year.
Mohegan Sun resort casino in the Uncasville section of Montville also reported Monday generating $54.7 million in slot revenues last month, a 9 percent decrease from the $59.8 million in slots revenue a year earlier.
The two casinos have been losing slots revenue steadily over the past decade as the slumping economy caused overall gambling revenues to drop and more casinos have popped up on the landscape in the Northeast.
Foxwoods and Mohegan Sun were the only two casinos in the Northeast when they opened, but they now face competition in New York, Rhode Island, and Maine, with Massachusetts looking to add its own casinos in the next few years.
Slots revenues is the only revenue stream the casinos are required by Connecticut law to report, but they also generate money from includes table games, hotels, restaurants, live entertainment, and shopping. As gaming revenues have declined, Mohegan Sun and Foxwoods have adjusted their businesses. Foxwoods restructured its $2.2 billion in debt, which was signed off by creditors on Monday; and Mohegan laid off more than 300 employees in September.
As part of their agreement to operate in Connecticut, the casinos give more than 25 percent of their slots revenues to the state government general fund. In September, Mohegan gave $13.7 million while Foxwoods gave $11.8 million.
http://www.hartfordbusiness.com/apps/pbcs.dll/article?AID=/20121015/NEWS01/121019896
Posts
No comments:
Post a Comment