Paint the illusion as you choose.
Mohegan Sun is up to its ears in debt, has gone from +10,000 low wage employees
and still hasn't stopped bleeding red ink.
The Gambling Market is saturated.
The 'experts' can jiggle and juggle the numbers all they want, the market isn't there.
The tribal gaming authority said in March it had refinanced about $1 billion in debt to gain more time to improve its business and established about $225 million in credit.
[And that's before we discuss the Palmer Citizens' Casino Study report that determined the
annual cost to host Mohegan Sun's Slot Barn would be $18 MILLION to $39 MILLION
annually, not including the $50 MILLION to bring water from the Quabbin.]
Business
Kostrzewa - Mohegans try to cover the field
October 2, 2012 8:44 am
Smart companies cut expenses to meet short-term revenue declines even as they keep their commitment to long-term investments.
Consider the Mohegan Tribal Gaming Authority.
With slot revenue off 8 percent this year, the managers of the Mohegan Sun Casino said 282 workers would be laid off immediately and another 46 by the end of the month. That follows a cutback of 356 in 2010. Still, the casino complex employs 6,400 workers in Uncasville, Conn.
Comparing August 2012 to August 2007, the decline is a staggering 32.6 percent.
From: Mohegan Sun: Re-Shuffling Deck Chairs on the Titanic
While the short-term restructuring is underway, company leaders have recommitted to applying for a license to build a $600 million resort casino on 152 acres off the Massachusetts Turnpike in Palmer. The state gambling commission will award licenses for three casinos and a slots parlor in 2013.
The Mohegan's thinking: The new Massachusetts casinos will drain revenue from their operation in Connecticut and threaten its viability. So build a new casino in western Massachusetts to protect its investment in Connecticut and grab revenue that would have been lost.
Said Mitch Etess, CEO of the Mohegan's authority: "We get most of our business from Connecticut and New York but there's no doubt that gaming in Massachusetts will have an impact to our revenues in Connecticut. That's why we are pursuing Palmer."
http://news.providencejournal.com/business/2012/10/kostrzewa---mohegans-try-to-cover-the-field.html
Mohegan Sun lays off 300 in Conn., replaces CEO
Posted: Thursday, September 27, 2012
John Kostrzewa
With slot revenue off 8 percent this year, the managers of the Mohegan Sun Casino said 282 workers would be laid off immediately and another 46 by the end of the month. That follows a cutback of 356 in 2010. Still, the casino complex employs 6,400 workers in Uncasville, Conn.
Comparing August 2012 to August 2007, the decline is a staggering 32.6 percent.
From: Mohegan Sun: Re-Shuffling Deck Chairs on the Titanic
While the short-term restructuring is underway, company leaders have recommitted to applying for a license to build a $600 million resort casino on 152 acres off the Massachusetts Turnpike in Palmer. The state gambling commission will award licenses for three casinos and a slots parlor in 2013.
The Mohegan's thinking: The new Massachusetts casinos will drain revenue from their operation in Connecticut and threaten its viability. So build a new casino in western Massachusetts to protect its investment in Connecticut and grab revenue that would have been lost.
Said Mitch Etess, CEO of the Mohegan's authority: "We get most of our business from Connecticut and New York but there's no doubt that gaming in Massachusetts will have an impact to our revenues in Connecticut. That's why we are pursuing Palmer."
http://news.providencejournal.com/business/2012/10/kostrzewa---mohegans-try-to-cover-the-field.html
Mohegan Sun lays off 300 in Conn., replaces CEO
Posted: Thursday, September 27, 2012
The Mohegan Sun casino is laying off more than 300 employees and replacing its CEO, the Mohegan Tribal Gaming Authority's chief executive said Thursday.
Mitchell Etess told The Day of New London (http://bit.ly/QXYt7n) that casino CEO Jeffrey Hartmann has departed and will be replaced by Bobby Soper, CEO of Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa. Hartman had been a Mohegan Sun executive since 1996 and the casino's CEO since 2011.
Etess said 282 employees were being laid off immediately and another 46 will be let go at the end of October when the casino closes a restaurant, which will reopen under new management. Etess said the casino is also shutting down its keno operation.
"You have to put this in the context of the amazing decline in business we've experienced," Etess told The Day. "The last thing we ever want to do is lay people off, but we had to do this to make the size of our workforce appropriate to our business volumes."
He said the layoffs affect workers in nearly every department and job level. Mohegan Sun cut about 350 workers two years ago. About 8,000 workers remain.
The casino and nearby rival Foxwoods have blamed recent revenue declines, including key slot machine revenues, on the weak economy and regional competition. A major competitor has been Resorts World Casino at the Aqueduct racetrack in New York City, which opened a year ago.
The tribal gaming authority said in March it had refinanced about $1 billion in debt to gain more time to improve its business and established about $225 million in credit.
___
Information from: The Day, http://www.theday.com
http://www.timesonline.com/news/state/mohegan-sun-lays-off-in-conn-replaces-ceo/article_bea8f6f9-77a2-5f67-9442-d07d85feea89.html
Mitchell Etess told The Day of New London (http://bit.ly/QXYt7n) that casino CEO Jeffrey Hartmann has departed and will be replaced by Bobby Soper, CEO of Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa. Hartman had been a Mohegan Sun executive since 1996 and the casino's CEO since 2011.
Etess said 282 employees were being laid off immediately and another 46 will be let go at the end of October when the casino closes a restaurant, which will reopen under new management. Etess said the casino is also shutting down its keno operation.
"You have to put this in the context of the amazing decline in business we've experienced," Etess told The Day. "The last thing we ever want to do is lay people off, but we had to do this to make the size of our workforce appropriate to our business volumes."
He said the layoffs affect workers in nearly every department and job level. Mohegan Sun cut about 350 workers two years ago. About 8,000 workers remain.
The casino and nearby rival Foxwoods have blamed recent revenue declines, including key slot machine revenues, on the weak economy and regional competition. A major competitor has been Resorts World Casino at the Aqueduct racetrack in New York City, which opened a year ago.
The tribal gaming authority said in March it had refinanced about $1 billion in debt to gain more time to improve its business and established about $225 million in credit.
___
Information from: The Day, http://www.theday.com
http://www.timesonline.com/news/state/mohegan-sun-lays-off-in-conn-replaces-ceo/article_bea8f6f9-77a2-5f67-9442-d07d85feea89.html
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