Foxwoods, Mohegan Sun report rough June
Slot revenue falls compared to 2008
--------------------------------------------------------------------------------
By WILLIAM SOKOLIC
For The Norwich Bulletin
Posted Jul 15, 2009 @ 11:21 PM
--------------------------------------------------------------------------------
The region’s two casinos reported another month of declining slot revenue in June.
Mohegan Sun posted an 8.8 percent decline compared to the same month in 2008 in figures sent to the state Division of Special Revenue. Foxwoods Resort Casino and MGM Grand at Foxwoods posted a decrease of 9.1 percent compared to June 2008.
Mohegan Sun reported a slot machine profit of $61.8 million for June; the state received $15.4 million of the revenue, equal to 25 percent of the win.
The casino won $9,164 per machine last month from 6,747 machines while winning $11,309 per machine last June with 5,998 machines. But the payout percentage to customers rose from 91.57 percent to 91.68 percent in June 2008.
According to Mashantucket Pequot Tribal Nation, Foxwoods’ owner, the casino won $57.8 million in June, paying $14.5 million to the state. The casinos brought in $7,611 per machine last month and $7,812 in June 2008. As with Mohegan Sun, Foxwoods’ payout to gamblers rose from 91.46 percent to 91.6 percent this June compared to last.
“I’m disappointed by the numbers,” Mohegan Sun President and CEO Mitchell Etess said. “We hoped decreases would be under 5 percent.”
Atlantic City worse
Both casinos outpaced Atlantic City, N.J., which experienced a 13.6 percent decline in June over the same month a year ago. All but two casinos had double-digit decreases.
“I’m pleased that we continue to outperform the industry as a whole,” said Michael Speller, president of Mashantucket Pequot Gaming Enterprises.
“The gap year over year is getting smaller,” said Robert Victoria, senior vice president of consumer marketing at Foxwoods. Table game play at Foxwoods has not dipped as much, he said.
Working together
The revenue decline continues a string of decreasing year-over-year results blamed on the general economic doldrums. To help offset these trends, Mohegan Sun and Foxwoods this month launched a cooperative marketing campaign aimed at stealing business from Atlantic City.
The strategy will take a couple of months to have an impact. The first two days, the Web site drew 2,000 hits. Foxwoods hopes to see results by the end of July, Victoria said.
But Etess does not expect to see immediate results. The campaign is more long term. “People are not going to see the billboard and turn around,” he said.
Mohegan Sun is crowded, but visitors are spending a lot less, Etess said.
“We’re doing all the right things. But our hands are tied. We need to see the public feel better about the economy,” he said.
July and August are historically the strongest months of the year.
By the numbers Mohegan Sun June 2008 June 2009
Total bet in slot machines $804,717,941 $743,182,987
Casino profit* $67,828,998 $61,829,535
Profit percentage 8.43 percent 8.32 percent
Payout 91.57 percent 91.68 percent
Slot machines 5,998 6,747
Profit per slot machine $11,309 $9,164
Source: Mohegan Sun
Foxwoods June 2008 June 2009
Total bet in slot machines $745,359,584 $688,115,766
Casino profit* $63,647,951 $57,827,406
Profit percentage 8.54 percent 8.4 percent
Payout 91.46 percent 91.6 percent
Slot machines 8,147 7,598
Profit per slot machine $7,812 $7,611
Source: Foxwoods
*25 percent of the casino profit is paid to the state.
EDITORIAL FOOTNOTES; June results for the Mohegan Sun Casino are bad. Think about the fact, that we (the Mohegan Tribe) had losses last year, too. Losses on top of losses.
Is there going to be losses to the Mohegan Tribal Government, because of the performance of the casino? Will the Mohegan Tribal Government be able to bring over enough revenue to run the Mohegan Tribal Government? Is the tribal government coming up short already?
The ultimate financial situation, the Mohegan Tribe finds itself in, is the responsibility of the Tribal Council. The present Tribal Council is failing us. Those are the facts.
When you vote, think of where we are, and how we got there. The results of the casino fall directly on the shoulders of the Tribal Council. We may not be able to change much, but we can change our leadership.
We need new blood. We need new ideas. We need people who will tell us the truth. We don't need to bury our heads in the sand. We can not continue to go down the present path that our Tribal Council is leading us? What do you think?
Subscribe to:
Post Comments (Atom)
2 comments:
You are absolutely correct !
I'm very concerned about our Tribe's financial future. I don't think the council is doing everything in it's power to combat the situation with the economy we are now living in. There are still a lot of positions they don't need over at the Tribal office that I feel is weighing us down. What's going to happen if there isn't enough money to pay our stipends!! Are they going to make cutbacks at the Tribe and Casino again?? Still a lot of unanswered questions out there. I hope there is some kind of plan in place in case the economy doesn't fall back in place right away or by now like predicted. We have to have a plan to protect us.
Post a Comment