New Niagara Falls casino operator wins contract over high-profile opponents
Mohegan Gaming operates eight resorts in U.S., South Korea; will take over next summer
A new operator has been picked to run Niagara Falls’ two casinos.
And it’s not Caesars Entertainment Corp. or Hard Rock Café International, the two high-profile Las Vegas names among the final three competing for the rights.
Ontario Lottery and Gaming announced Monday that Mohegan Gaming and Entertainment, which runs seven U.S. casino resorts and one in South Korea, will take over sometime next summer.
Based in Uncasville, Conn. and owned by the Mohegan Tribe of Connecticut, Mohegan employs more than 12,000 workers at its properties in Connecticut, Pennsylvania, Atlantic City, N.J., Washington State, Louisiana and Incheon, South Korea.
Perhaps most important to Niagara Falls residents, the approximately 4,200 full- and part-time jobs at Niagara Fallsview Casino and Casino Niagara are protected for at least 12 months after Mohegan takes control.
“We operate the top properties in each of our respective markets, and our success is due precisely to the incredible efforts and talents of our team members …,” said Mohegan chief executive officer Mario Kontomerkos.
“The employees of the facilities in Niagara will be no different, and we have no expectation of any changes at this time.”
Under the 21-year deal, Mohegan will be paid by OLG to operate both Niagara Falls casinos, as well as the new entertainment centre due to open in June 2019.
“We have spent a lot of time studying the market and what makes it tick,” said Kontomerkos.
He added “the addition of even more well-known shopping and restaurant brands as well as the world-class concert and entertainment programming that Mohegan is known for” will bring in more customers.
Niagara Falls Mayor Jim Diodati said he and other city officials met with Mohegan representatives — as well as members from the other bidding groups — over dinner a few months ago. Mohegan had already done its own tour through the Falls properties, Diodati said, and “were eager and excited” by the possibilities.
“The big message we wanted to convey when we met with potential operators is that we believe there is way more potential” than has been realized, he said.
“The vast majority of our customers are Canadian, and there’s a huge, huge U.S. market.
“You know we’re a day’s drive from 120 million people,” Diodati said.
“By having a U.S. partner like Mohegan Sun, they’ve already got customer data bases and will market to their current clientele … when we met with them they were really eager and excited about the potential.”
The agreement also provides short-term security for the future of Casino Niagara, which opened in 1996.
That property is owned by
‘‘ The big message we wanted to convey when we met with potential operators is that we believe there is way more potential ...
Canadian Niagara Hotels.
“Mohegan will not be permitted to close Casino Niagara, which is a leased property … or significantly reduce the number of gaming (tables and slots) for the duration of the current lease, which ends in 2025,” said OLG spokesman Tony Bitonti.
As well, the operating deal will not affect the share of casino revenues the City of Niagara Falls receives each year, as a host community. Last year it got approximately $26 million from OLG.
Niagara Falls MPP Wayne Gates called Mohegan a strong player in the North American gaming market, noting it also owns the Connecticut Sun women’s pro basketball team as well as the New England Black Wolves professional lacrosse team.
It also operates a 10,000-seat arena that hosts sports and bigname entertainment such as Janet Jackson and Keith Urban.
“The big issue for us … is that the jobs are protected and there is economic development.”
“I’d like to see a 21-year contract that guarantees everyone a job, but I also understand we need to look at what’s happening in the economy,” Gates said.
“But the reality is they have said they’ll keep both casinos open and will invest in both casinos.”
He’s written to Mohegan officials asking for more information on job security beyond the first 12 months.
Diodati agreed he’d like more assurances over job security, but “given the situation and that this is OLG-driven, the most successful thing we could do outside OLG guaranteeing jobs was to find a good partner that would be aggressive in their marketing and their expansion ideals, and was willing to grow the business.”
Currently, the two Niagara Falls casinos employ 4,196 fulltime, part-time and contract workers.