Connecticut casino operators had just reported a serious drop in revenues for 2019. As stated by casino management, regional rivals are potential culprits for such a situation.
According to the report from media outlet, The Day, two leading casino operators in Connecticut - Foxwoods Resort Casino and Mohegan Sun Casino - had reported negative results over the previous last months ending September 30, 2019. However, the declining trend has significantly slowed down compared to the same period last year.
Mohegan Gaming and Entertainment recorded an overall income of $1.39b which is 2.4% better result compared to the result from 2018. However, Mohegan Sun based in Connecticut marked a slight decline of 7.2% reaching $992m. All money earned by the parent operator came from a deal signed for the operation of the Niagara Falls Ontario venue.
Foxwoods venue, which is held by Mashantucket Pequot Tribal Nation, recorded a 5% fall in revenues reaching $787.8m. Both operators consider that regional casino rivals caused an overall decline in profits. As a reminder, two leading venues have been opened over the same period - Encore Boston Harbor and MGM Springfield. These wonderful venues take place just across the border of Connecticut, making casino performance even worse.
According to the gaming compacts with the state of Connecticut, both Foxwoods and Mohegan Sun are required to share revenues from slot machines with the state. It means that amounts of slot revenues are published on a monthly level. However, both operators reported an ongoing increase in slot revenues since the opening of MGM Springfield in summer 2018.
Connecticut-based Mohegan Gaming and Entertainment and Foxwoods venue reported slight year-on-year growth in this past October. It means that the decline in revenues started to stabilize and we can only wait to see whether the upcoming period will come with better figures.
If we take into consideration employees' salaries, we can also see negative trends. Both full and part-time workers felt the negative impact of Connecticut casinos' decline in revenues. Starting from September 30, Foxwoods venue lost about 550 employees while Mohegan Sun was left with 440 workers.
Source:
“Connecticut’s tribal casinos blame regional rivals for revenue dip“, Peter Amsel, calvinayre.com, January 3, 2020.