And just think what would happen if Mohegan Sun had to pay taxes!
The Gambling Market is SATURATED!
Mohegan Sun profits down 68% from 4th quarter of last year
Published: Thursday, November 29, 2012
By Joe Amarante, Register Staff
Mohegan Sun’s corporate parent on Thursday reported lower profit numbers for the fiscal fourth quarter ending Sept. 30, with officials on a conference call citing continuing economic weakness in New England as the chief reason.
Net income attributable to the Mohegan Tribal Gaming Authority was down 68.3 percent from the fourth quarter of fiscal 2011, at $14.8 million.
The Authority owns and operates the Mohegan Sun in Uncasville and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa.
Bruce “Two Dogs” Bozsum, chairman of the Tribal Council of the Mohegan Tribe, said while results are less than he’d like, he’s “certainly not surprised” and attributes them to a continued weakness in discretionary spending.
Net income attributable to the Mohegan Tribal Gaming Authority was down 68.3 percent from the fourth quarter of fiscal 2011, at $14.8 million.
The Authority owns and operates the Mohegan Sun in Uncasville and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa.
Bruce “Two Dogs” Bozsum, chairman of the Tribal Council of the Mohegan Tribe, said while results are less than he’d like, he’s “certainly not surprised” and attributes them to a continued weakness in discretionary spending.
He noted that former Mohegan Sun offical Robert J. “Bobby” Soper, who had been CEO of Mohegan Sun at Pocono Downs, recently returned to Mohegan Sun as CEO (replacing Jeffrey Hartmann). Soper said he’s still getting settled but mentioned opportunities for cost savings and marketing and that some real estate at Mohegan was “underutilized.”
MTGA CEO Mitchell Grossinger Etess said that Mohegan continues to take “significant actions” to control costs, referring to the recent 330 job cuts in Connecticut that are part of moves to save $20 million in labor and operating costs in fiscal 2013.
Officials also noted published reports about median annual household income being down in Connecticut and that while new slots competition at the likes of Aqueduct Raceway continues to cut into Mohegan’s business from New York players, there is also a drop in business from northern Connecticut and Massachusetts players due to the anemic economy.
The MTGA reported income from operations was down 24.6 percent and gaming revenues were down almost 7 percent from a year ago, but hotel business was up 10.8 percent and officials are continuing talks with developers to add another hotel on the Connecticut property despite the Authority’s $1 billion-plus debt, possibly breaking ground within three to six months on that project.
Another measure of the drop in gambling revenue at Mohegan Sun was that adjusted earnings before interest, taxes, depreciation, and amortization — or cash flow — fell 10.5 percent from 2011 to $81 million.
Officials continued to express confidence in Mohegan’s bid to win one of three new casino licenses in Massachusetts, for a site in Palmer, Mass., but the doors would not open before sometime in 2016.
MTGA CEO Mitchell Grossinger Etess said that Mohegan continues to take “significant actions” to control costs, referring to the recent 330 job cuts in Connecticut that are part of moves to save $20 million in labor and operating costs in fiscal 2013.
Officials also noted published reports about median annual household income being down in Connecticut and that while new slots competition at the likes of Aqueduct Raceway continues to cut into Mohegan’s business from New York players, there is also a drop in business from northern Connecticut and Massachusetts players due to the anemic economy.
The MTGA reported income from operations was down 24.6 percent and gaming revenues were down almost 7 percent from a year ago, but hotel business was up 10.8 percent and officials are continuing talks with developers to add another hotel on the Connecticut property despite the Authority’s $1 billion-plus debt, possibly breaking ground within three to six months on that project.
Another measure of the drop in gambling revenue at Mohegan Sun was that adjusted earnings before interest, taxes, depreciation, and amortization — or cash flow — fell 10.5 percent from 2011 to $81 million.
Officials continued to express confidence in Mohegan’s bid to win one of three new casino licenses in Massachusetts, for a site in Palmer, Mass., but the doors would not open before sometime in 2016.
Finally, in response to a question, a top official said the MTGA had entered into a partnership with Bally’s for a “back-end system” of free-play online poker in Connecticut to put the operation in position to be ready for the legalization of online gambling in the state.
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2 comments:
MR one thing about the US encourages me! You are all working very hard to make sure that casino harms are better known...but also, people do seem to be really listening in much greater numbers...or am I in fool's paradise? I see much more reference and challenging questioning in your media, to caution against the 'advantages of casinos. We do not get that nearly enough over here! You are all doing a great job, from what I can see! It may not be happening as fast as you would like, but awareness is rising much more rapidly in your country I feel. Congrats! xoxo
The facts and statistics of Predatory Gambling are universal just as people's behavior is universal.
What is impressive is that the same arguments to defend the Gambling Industry are used around the globe.
We appreciate your efforts to continue to share information about a Predatory Industry that exists only because of the Least among us.
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