Opinion: Tribal casinos in Connecticut facing more threats

Tuesday, September 18, 2012  

"US gambling casinos are in trouble. The two largest casinos in the world, Foxwoods and Mohegan Sun (both in Connecticut), have real problems. With $2.3 billion in debt, Foxwoods is struggling. It just reported August 2012 slot revenue of $50.5 million, a 3.3% decline compared to the same month a year ago. Foxwoods is not bullish on its gambling market. So it is building a 300,000-square-foot retail center, including space for 75 outlet stores. Mohegan Sun? It is having to deal with $1.6 billion in long term debt.

As Table 1 indicates, US casino gambling revenues continue to fall. In Las Vegas, total gambling revenues are down 16% since the July to June 2006 - 2007 year, with slots revenues down even more. Both Connecticut casinos are doing worse with slots down 25% and 24% for Mohegan Sun and Foxwoods respectively.

As I have suggested in an earlier piece, things will probably get worse for the Connecticut casinos as new casinos are built in Massachusetts and New York."

Get the Story:
Elliott R. Morss: Foxwoods And Mohegan Sun: Coming Threats From New MA/NY Casinos (Seeking Alpha 9/17)