Casino net and gross receipts in Connecticut have fallen for two of the state’s biggest operators with Mohegan Gaming and Mashantucket Pequot reporting worse fiscal results YOY.
Casino Receipts Fall in Connecticut in FY 2020
Connecticut has reported a substantial declined year-over-year from its casino receipts for fiscal 2019/2020 that ended on September 30, 2020. The state saw most of its major casinos report weaker results than a year before, with Foxwoods Resort Casino collecting 539.2 million in net revenue, or 31.6% drop year-over-year.
In comparison, for 2018/2019, Foxwoods collected a total of $787.8 million. Mohegan Sun’s revenue fell to $715.7 million or down 27.9% from a year before when net revenue stood at $992 million.
Globally, Mohegan Gaming & Entertainment, Mohegan Sun’s parent company, has posted $1.11 billion, or a 16.7% decrease. The result was better than the Connecticut decline owing to a diversified portfolio that spans multiple regions.
The numbers come directly from MGE’s annual report submitted to the U.S. Securities and Exchange Commission (SEC). In the company’s quarterly report, Mohegan Gaming noted that the firm was experiencing “infections in virtually all of our markets globally,” leading to a notable slowdown in developments.
One of Mohegan’s flagship projects, the casino resort under construction in Incheon, South Korea, has been delayed with the $1.5 billion project now threatened by a rising number of Covid-19 infections.
Mohegan has also taken a hit in Canada as well as a scheduled casino opening in Las Vegas. Nevertheless, the quarterly report shows a positive outlook, as stated by MGE CEO Mario Kontomerkos with the company expecting to see a significant demand for gaming products once restrictions are eased up.
Pandemic Bites into Results
Commenting on the pandemic, the report admitted that revenue has suffered significantly due to the lockdown. A similar sentiment is shared by the Mashantucket Pequot tribe which owns Foxwoods.
Mohegan Gaming decided to shutter all of its casinos beginning early in March and beginning to restart some of its properties in May, but waiting until June 2 to reopen the Mohegan Sun Pocono in Wilkes-Barre and until July 2 before reopening Resorts Casino Hotel in Atlantic City, New Jersey.
MGE’s business naturally took a hit, prompting some redundancies and layoffs. However, by mid-September the company was still employing 11,000 people around the world, with 70% of those employed full time.
This was 1,000 people short from the workforce a year before in 2019, when 12,000 people were employed by the company worldwide. Meanwhile, Foxwoods’ parent company has obtained $54.4 million in federal aid under the Coronavirus Aid, Relief and Economic Security.
Connecticut’s governor Ned Lamont in the meantime has pushed for the legalization of sports betting, as has NY Gov. Andrew Cuomo. Alternative sources of revenue have been dearly needed by states which wrestle with gaping deficits.