The tribe running the Mohegan Sun resort casino in Uncasville on Tuesday took over operational control of the longest established casino on Atlantic City’s famed Boardwalk in New Jersey.
Mohegan Gaming Advisors, a subsidiary to the Mohegan Tribal Gaming Authority, entered into a management and investment contract with Resorts Casino Hotel, the oldest operating Atlantic City casino recently remodeled by owner Morris Bailey in a 1920s theme. The Resorts features 942 hotel rooms.
Financial terms were not disclosed.
The contract gives the Mohegans operational control over its third casino, the other two being Mohegan Sun in Uncasville and Mohegan Sun at Pocono Downs in Pennsylvania. The tribal authority plans to offer cross-marketing and promotional opportunities at all three properties, including reward points.
“We have long looked at the Atlantic City market as an excellent opportunity and with a solid commitment by state and local agencies to revitalize the area,” said Mitchell Grossinger Etess, chief executive officer of the Mohegan Tribal Gaming Authority.
Long dominant in the gaming market, Atlantic City casinos have struggled due to increased competition, including from the likes of Mohegan Sun and Foxwoods Resorts Casino in Connecticut. The two Connecticut casinos as well have struggled to maintain revenues over the last five years, as the economic slowdown and increased competition in New York and New England have eroded their customer base.
The Mohegans solution to this financial problem has been to diversify, opening the resort in Pennsylvania, establishing the Mohegan Gaming Advisors subsidiary, and now adding a property in New Jersey. The tribe also is seeking a casino license in Massachusetts.
The Resorts Casino Hotel operations will be led by Gary Van Hettinga, president of Mohegan Gaming Advisors.
The deal is subject to New Jersey regulatory approvals.
