Profits Sink As Mohegan Sun Reports Lower Gaming Incomes

The Hartford Courant

The parent company of Mohegan Sun reported Thursday a dive in operating profits at the Uncasville casino from lower slots revenues and a drop in what the house keeps on high-end table games.

Higher non-gaming sales from retail and restaurants wasn't enough to outweigh flagging gaming volumes, a problem the casino says is due to a "continued sluggish economic environment."

Mitchell Grossinger Etess, chief executive of the Mohegan Tribal Gaming Authority, said in a written statement that he would have "preferred more normalized table game hold and thus better operating results at Mohegan Sun," though he is encouraged by "recent volume trends, as well as our other significant accomplishments."

The tribal casino authority has proposed a $1.3 billion resort casino on the grounds of Suffolk Downs racetrack in Revere, Mass., as the state looks to establish three casinos throughout the state. Its pursuit of the one eastern license was the primary reason corporate expenses jumped 68 percent to $9.6 million, the authority said.

Operating profits from Mohegan Sun fell 28 percent during its first fiscal quarter to $34.6 million from $48.1 million last year. Gaming revenues fell 6.2 percent, while non-gaming sales — a smaller source of overall net revenue — grew 8.1 percent. Those net revenues fell 4.4 percent in the quarter.

At Mohegan Sun, slot revenues were down 2.6 percent to $138.9 million, while table games slid 13 percent to $65.7 million. The lower take through table games came because the casino won 13.3 percent of all that was wagered, instead of the 16.3 percent kept last year.

Mohegan Sun Tribal Gaming Authority, Mohegan Sun's parent company which also runs a casino in Pennsylvania, reported 36.3 percent lower operating profits and a net loss of $67.3 million.

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