October 15, 2018

Competitive pressures weighing on Mohegan, Foxwoods' slot revenues

PHOTO | Joe Cooper
PHOTO | Joe Cooper
Foxwoods' Grand Pequot Tower.

Connecticut's tribal casino operators saw their slot revenues decline for a third consecutive month in September as they face new competitive pressure from MGM's recently opened Springfield gaming and entertainment facility.

On Monday, Mohegan Gaming & Entertainment reported it recorded $47.2 million in slot revenue last month, down 8.8 percent from the $51.8 million it recorded in Sept. 2017.

The amount slot bettors wagered in September, known as the "handle," was over $585.3 million, also down about 10 percent vs. the $652.7 million wagered in the year-ago period.

The casino's slot revenues dropped less than 1 percent in August, 1.3 percent in July and was flat in June.

Mohegan contributed more than $11.8 million to the state last month.

Meantime, Foxwoods Resort Casino reported a 5 percent drop in slot revenue in September.

The casino, operated by the Mashantucket Pequot Tribal Nation, on Monday said it netted slot revenue of $38 million last month, down 5.2 percent from the $40.1 million it recorded in the year-ago period.

The handle was $470.5 million, also down 5.7 percent vs. the $498.8 million wagered in Sept. 2017.

Foxwoods said it contributed $9.8 million to the state in September.

The casino's year-over-year slot revenue has also decreased the last three months, suffering a 1.6 percent and 5 percent decline in August and July, respectively. Foxwoods recorded a 5.7 percent hike in slot revenue in June.

The lower slot revenues come as MGM Springfield enters the second month operating its new $960 million casino and entertainment complex.

Mohegan Sun and Foxwoods have also teamed up to build a proposed $300 million entertainment complex in East Windsor to fend off competition from MGM.

But the development is now in doubt as a federal judge recently said Connecticut and the Mashantucket Pequots have no legal standing to convince the Department of the Interior to allow for changes to the state's current gambling agreement with the tribe.

Meantime, the Massachusetts Gaming Commission said MGM recorded over $9.4 million in gaming revenue during its first eight days in operation. That includes $7.3 million in slot revenue and $2.1 million from table games.

This story has been updated to note Mohegan's slot revenue in September

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