The two tribal casino operators based in Connecticut reported a decline in their annual revenue for 2019. The reason for this fall was attributed to the new regional competition that just came on board.
The Day reported that they were able to lay their hands on the yearly report that was filed by Mohegan Sun Casino and Foxwoods Resort Casino. Together, these two companies were able to form a monopoly on all casino operations in the state of Connecticut.
For 12 months which ended on the 30th of September, 2019, the two casinos showed a negative net revenue growth. As luck would have it, the decline was not as bad as the previous financial year.
MGE (Mohegan Gaming & Entertainment) posted a revenue of $1.39 billion, a 2.4 percent increase when compared to the revenue of 2018.
However, the Mohegan Sun based in Connecticut, posted a decline in revenue of about 7.2 percent to $992 million.
The gains which the parent company enjoyed were because of the benefits accrued from the deals signed in the middle of the year to manage all casino operations in Ontario, Canada.
According to Calvin Ayre, Foxwoods, which is run by the Mashantucket Pequot Tribal Nation, posted a result that was slightly better, as their earnings fell by 5 percent to $787.8 million. Both Mohegan Sun and Foxwoods blamed spiraling gaming revenue on the general net revenue slide. They didn’t stop there, they also blamed the new regional casino rivals as the primary source of this dip.
On the other hand, Massachusetts saw the unveiling of Wynn Resorts’ glitzy new $2.5 billion Encore Boston Harbor which took place in the middle of last year. MGM Resorts also unveiled its MGM Springfield property which is situated close to the Connecticut border two years ago.
These new casinos have been the major reason for the dip in revenue most of these venues apart from Connecticut. They are also responsible for steep decline at the slots-only Plainridge Park Casino of Massachusetts.
The gaming deals that Mohegan Sun and Foxwoods have with Connecticut mandate them to share their slots revenue with the state government.
Because of this, slot is the only gaming numbers the 2 casinos that is reported publicly every month. The 2 casinos had reported declining slots revenue since MGM Springfield unveiled its property in August 2018.
This decline did not happen in October last year, as the two Connecticut casinos posted fair year-on-year gains in slots earnings. It is simply a matter of time before we can say they’ve been able to arrest the decline or it was just a one-off thing.
This would be good news for employees of the two casinos as they’ve been severely hit since this crisis began. In 12 months, most of them have lost their jobs because both companies had to downsize in order to stay afloat.
As of 30th of September last year, the full time and part time employees for Foxwoods dropped to 5,144, while Mohegan Sun had to relieve 140 part time and 300 full-time staff of their duties.