The tribal operator of Mohegan Sun on Thursday said its Connecticut casino posted a 21 percent decline in third-quarter profits thanks to declining gaming revenues.
For the quarter ended June 30, Mohegan Gaming & Entertainment (MGE), whose subsidiaries also include casinos in Pennsylvania and Canada, said Uncasville-based Mohegan Sun recorded net income of $48.8 million, down from $61.7 million in the third quarter of 2018.
The Connecticut casino also posted net revenues of more than $251 million, down 7.2 percent from the $270.4 million recorded in the year-ago period. Gaming revenues at Mohegan Sun, like at Foxwoods Resort Casino, have declined in 12 consecutive months.
Mario Kontomerkos, CEO and president of MGE, in Thursday’s earnings release said gaming volume at Mohegan Sun remains “robust despite the increased competitive pressure in the Northeast.”
Including all of its gaming properties, MGE said its profits declined 13.6 percent to $55.2 million.
Its net revenues in the three-month period rose 0.8 percent to $347.6 million. MGE said higher non-gaming revenues from hotel, retail, entertainment, and food and beverage purchases were squandered by a significant dip in gaming revenues.
Total gaming revenues sunk about 20.3 percent to $235.4 million. MGE earned $51.2 million from retail and entertainment sales, $37.1 million from food and beverage sales, and almost $24 million from hotel stays.
MGE said profits at its Pennsylvania casino, Mohegan Sun Pocono, rose 3.8 percent to $10.6 million.
The tribe said its third-quarter revenues were helped partly due to 20 days of operating a recently acquired bundle of casinos in Canada.
Kontomerkos said MGE’s acquisition of Casino Niagara, Fallsview Casino Resort and the Niagara Falls Entertainment Centre, represent its efforts to diversify earnings and expand internationally.
Furthermore, MGE is also building a $1.6 billion entertainment and gaming complex, luxury hotel, shopping center and 15,000-seat arena in South Korea. That venue is scheduled to debut in early 2022, he said.
Mohegan and Foxwoods are currently in the middle of an ongoing debate at the state Capitol over whether to legalize sports betting and where to build the state’s third casino and entertainment complex.
Some argue that the Mohegan and Mashantucket Pequot tribes should hold the exclusive rights to sports betting and to develop a casino in Bridgeport and East Windsor, while others are advocating for an open bidding process.
On Wednesday, MGM Resorts International, which operates a one-year-old casino in Springfield, sued the U.S. Department of the Interior in a renewed bid to bar the tribes from building an off-reservation casino in East Windsor or pursuing rights to another one in Bridgeport.
