In October, Connecticut slot machines in the two tribal casinos reported an increase in revenue for the first time since June 2018.
Initially, the Mohegan Sun and Foxwoods casinos had reported a continued decline of gross slot machines revenue in several months. However, that ended in October, Mohegan Sun, owned by Mohegan tribe, posted $43.6 million of gross slot machines revenue. While Foxwoods, owned by Pequot, and reported revenue of 34.5 million from its terminals.
Mohegan Sun represented a 2.6 percent gain compared to the same month in 2018, while Foxwoods gain was less by 0.5 percent compared to the same month in 2018.
In Connecticut, the agreement between the state and the tribes is that they should pay 25 percent share of revenue they get from slot machines. However, the revenue generated from table games is exempted and usually not reported. In October, the state pocketed $19.7 million from the two casinos.
Winning Streak
While the October slot revenue has been pleasing to the tribes, the Mashantucket and Mohegan tribes have been in a legal battle, which involves federal officials and MGM. Connecticut signed a non-reservation casino to keep the slot revenue from going to Massachusetts.
MGM is said to have been lobbying the US Interior Department in an attempt to prevent the approval of Connecticut amended gaming agreement with the tribes. The amendment allows the tribes to build commercial casinos outside their sovereign land.
Last week, Casino.org reported that the Interior Department had disapproved a claim by MGM that it blundered in the authorization of casinos in East Windsor. Now MGM is opposing the establishment of commercial tribes owned by the tribe, citing that they failed to adhere to the bidding process.
Crowded Market
Mohegan and Foxwoods casinos blame competition in the northeast for their slot machines revenue decline. When the casinos were established in the 90s, there were no commercial casinos in neighboring states. Today, New York, Rhode Island, and Massachusetts have casinos.
