The Register Citizen (Torrington, CT)
Mohegan Sun sees boom after pandemic ‘bubble’
In comments ranging from sports betting to its popular food buffets — one prodded along by the pandemic, the other a possible casualty — Mohegan Gaming & Entertainment’s CEO expressed confidence Thursday that patronage will bounce back at its Mohegan Sun casino in Eastern Connecticut, even as it readies to expand with a new venue in Las Vegas.
For the final three months of 2020, Mohegan Gaming & Entertainment reported revenue of $166 million at the Mohegan Sun resort in Uncasville, a 31-percent decline from a year earlier. Overall revenue was off 42 percent to $231 million, due to precautionary closures of two smaller casinos Mohegan Gaming & Entertainment operates in Pennsylvania and in Ontario opposite Niagara Falls.
On a Thursday conference call, CEO Mario Kontomerkos said fear of COVID-19 infection continues to keep many resort patrons home, but predicted a “robust” recovery for the sector as vaccinations roll out generally to vacationers who have been cooped up for much of the past year. Through mid-afternoon on Friday, Mohegan Sun slot players had racked up more than $4.2 million in winnings on the day, with intervening machines turned off to encourage distancing between visitors.
Kontomerkos said Thursday the company is counting on Connecticut approving sports wagering and online games, with negotiations ongoing between the state, Mohegan Sun, and Foxwoods Casino Resort, and Gov. Ned Lamont continuing to express support this week.
“The governor ... shared some sentiments that we share with him, in that Connecticut should not let some of these other states benefit from onling gaming and digital gaming activity any longer — the time to act is now, ” Kontomerkos said Thursday. “We are ready to offer these new products the same way we have invested in the world-class, land-based facilities that we have here in Connecticut, that can compete with anybody on any stage.”
Mohegan Sun entered October with 5,800 employees, of about 11,000 in all Mohegan Gaming & Entertainment properties including more than 3,600 on furlough from the Ontario resort that remains closed. Mohegan Sun is readying to open a new venue in Las Vegas the last week of March.
“As the properties were closed over the summer and as we’ve reopened portions, ... it’s given all of the leadership teams at the properties to reimagine how they operate,” said Ray Pineault, chief operating officer. “The buffets at all the properties have not reopened — we continue to evaluate the cost structure of those and whether it’s worth it.”
Mohegan Sun has hosted sports at its arena throughout the pandemic, including college basketball’s ‘bubbleville’ games along with boxing and mix martial arts — all without fans. The Mohegan Sun Arena is scheduled to host the Big East women’s basketball tournament in March.
Mohegan Gaming & Entertainment recorded a $26.8 million operating loss for the first quarter of its 2021 fiscal year ending in early January. During the quarter, Mohegan Gaming & Entertainment refinanced debt coming due this October, calling it an “important milestone” after issuing a warning to investors last year of a possible insolvency if it could not raise fresh capital.
“Throughout the pandemic, there’s been obviously starts and stops in multiple jurisdictions where we currently operate,” Pineault said. “When you look at the Northeast, I would say for the most part things are back to a normal, equal playing field. While the Rhode Island facilities were closed, we did see some low, double-digit (visitation) improvement from Rhode Island — but even after Rhode Island opened back up, we were seeing 5 percent increased visitations from Rhode Island to Connecticut, so hopefully those are permanent gains.”