The pandemic has not been kind to Connecticut’s two casinos. Reportedly, Mohegan Sun, owned by the Mohegan Tribe, saw a drop of 28%. Both Mohegan Sun and Foxwoods have revealed their fiscal year 2020 figures to the US SEC, and they look bad.
Limits on travel and stay at home orders are clearly the culprit. Casino income derives from gaming, food and beverage, hotel, retail, entertainment, and management and development services. When they tank so does the net revenue. In addition, 25% comes from slots. The rest goes to the tribe.
Mohegan Sun’s net revenue was $715.67 million compared to $992 million the previous year. The Mashantucket Pequot casino had a net of $539.2 million, constituting a 31.6% year-over-year decline.
Sadly, the Mohegan Tribe and Mashantucket Pequots have encountered devastating setbacks. In fact, they have folded their East Windsor joint venture that would have stemmed the tide of gamers running to Massachusetts.
Teetering on the edge
According to the tribes, the $200 million-$300 million development is no longer a viable project. Nonetheless, the outlook is not dismal. In a press release from Mohegan Gaming and Entertainment (MGE), it was stated,
“We remain positive. Our business has been optimized to benefit from what
we foresee to be significant pent-up demand for leisure consumption ahead.”
Of note, MGE owns or operates casinos in Pennsylvania, Atlantic City, Canada, Washington, and Louisiana. Companywide, the net revenue reached $1.114 billion, a 20 percent decrease from the previous fiscal year.
What lies ahead?
Despite circumstances, MGE intends to expand its footprint. The company will soon run casino operations at Virgin Hotels Las Vegas. It is spending billions to open integrated resorts in Incheon, South Korea, and Athens, Greece.
The recent SEC filings also revealed a dire employment picture. The global workforce totals about 11,000 people, with 70% working full-time. Not surprisingly, this is down considerably from the 12,000 staff force noted in 2019.
The average salary is around $25,600 annually. Compare this to Mohegan Gaming CEO Mario Kontomerkos’ compensation at $949,299.
As for Foxwoods, the full and part-time staff total approximately 2,500 workers. Prior to COVID-19, more than 5,000 were employed. Executive compensation was not disclosed.