NEW YORK – Mohegan Tribal Gaming Authority, the operator of Mohegan Sun casinos in Connecticut and Pennsylvania, is seeing smaller slot-machine revenue declines and stabilizing table play, CEO Mitchell Etess said.
“We’re starting to see a little more vibrancy in our tail end of the business and we’re hoping that the decreases in slots are finally getting to the bottom,” Etess said Thursday in an interview.
Mohegan Sun and Foxwoods Resort Casino, which is owned by the Mashantucket Western Pequot Tribe and also based in Connecticut, were hurt by the recession and continue to face competition from neighboring states.
Closely held Mohegan Sun, which is being advised by Blackstone Group LP and Credit Suisse Group AG, continues to work on restructuring its debts, Etess said. Its debt totaled $1.6 billion as of June 30, of which $765.7 million matures within the next year, according to a regulatory filing.
“We are working diligently on a holistic resolution,” he said, declining to provide details.
Etess said consumer spending at closely held Mohegan Sun’s casinos in Connecticut and Pennsylvania has declined while visitation has remained stable.
“People are modifying their behavior to fit the current economic situation,” he said.
Massachusetts Gambling
The Uncasville, Connecticut-based casino operator is pursuing a license in Massachusetts, where the state Senate Thursday approved a bill for casino gambling. The proposal would authorize up to three full-scale casinos, with one in western Massachusetts, another in the southeast and a third in or around Boston or Worcester. The plan also allows a slot-machine parlor, which could be located anywhere in the state.
“What we’ve been working on primarily is solidifying our position in Palmer,” Etess said, referring to the town in Massachusetts where he aims to build a casino resort. “We’ve made ourselves available to legislators. Our position has always been, when Massachusetts is ready, we’ll be there.”
License assignment may take 12 to 18 months after the bill is signed, Etess said.
The final legalization of gaming in Massachusetts looks “more than likely,” Joe Greff, an analyst with JPMorgan Chase & Co. in New York, said in a note yesterday.
Mohegan Sun is also working with Concord Associates LP to rebuild the Concord Resort in Kiamesha Lake, New York. The $600 million project will include a casino and a horse-racing facility. Mohegan Sun is “hoping to get in the ground before the winter,” Etess said.
