Connecticut casino operators reported a drastic drop in revenue during 2019 and the cause of this situation would be in the regional competition, according to casino management.
A report from The Day site indicates that local operators Mohegan Sun Casino and Foxwoods Resort Casino reported negative financial results for the last months before 30 September last year. This downward trend, however, significantly slowed down when compared to the same period of 2018.
Both casinos recorded a general income of more than $ 1.39 billion, which is 2.4% higher than the result of the previous year. The Mohegan Sun casino in Connecticut had a 7.2% decrease to $ 992 million. The profits obtained by the casino’s parent operator were the result of an agreement signed to operate the bookmaker of Niagara Falls Ontario.
As for the Foxwoods casino, whose owner is the Mashantucket Pequot Tribal Nation, the drop in revenue was 5% to reach $ 787.8 million. The two tribal operators accuse rival regional casinos of reducing their profits. During the same period, two playgrounds were opened: MGM Springfield and Encore Boston Harbor.
Both sites are nice places located right next to the Connecticut border, which further affects the state’s casinos.
The contract with the state of Connecticut states that Foxwoods and Mohegan Sun have an obligation to share the income of slot machines with the state. So the slot revenue is published monthly. Despite this the two operators reported a continuous increase in the income of the slot machines, after MGM Springfield opened in the summer of 2018.
The two operators, Mohegan Gaming and Entertainment, based in Connecticut, and the local Foxwoods casino reported having achieved small year-on-year growth in October 2019. That indicates that the trend in revenue declines has begun to stabilize, so it is expected that in the subsequent reports the situation has improved even more.
Negative business trends are also observed in staff salaries. All employees, both full-time and part-time at Connecticut casinos, were affected by the decrease in income. After September 30 last year, Foxwoods had to do without about 550 employees and Mohegan Sun had to keep just 440 workers.