It’s not as though they didn’t see it coming or didn’t prepare for it for years.
The opening of the MGM Springfield on August 23 correlated with declines in slots revenues in August for the Mohegan Sun, operated by Mohegan Tribe, and Foxwoods, operated by the Mashantucket Pequot Tribal Nation. The two Connecticut gaming tribes have been preparing for the rival’s opening for several years.
Slot revenues at Foxwoods was $41.4 million at Foxwoods, a 1.6 percent drop from one year before. The Mohegan Sun’s slots profits were $53.3 million, 1.1 percent less than in 2017.
The $960 million MGM Springfield raked in $9.5 million in revenues during its first week, with $7.3 million from slots.
Political Science professor Paul DeBole said he had been expecting worse figures. “I just thought with the hype and grand opening it would be higher,” he said.
When September’s figures are tabulated a clear picture of the dent MGM is making in Connecticut gaming will be clearer.
The tribes have formed a joint authority, MMCT Venture, to develop a “satellite” casino in East Windsor to try to deflect some of the effects of MGM’s inroads. That site is about a 15 minute drive from Springfield.
The tribes had hoped to have the casino open by now, however MGM has skillfully fought them at every turn, including in federal court, and more tellingly, in the halls of power, where the company has allegedly successfully lobbied the Department of the Interior to delay an approval the tribes need to move forward.
Nevertheless, the tribes say they expect to open their casino in early 2020.
Unable to stop the flow of money away from itself on one front, the Mohegan tribe has opened up a second front. It was recently named by Ontario Lottery and Gaming to operate OLG’s two Niagara Falls gaming properties. It will begin overseeing operations at Niagara Fallsview Casino and Casino Niagara within weeks as part of a 21-year contract. It will also operate a new entertainment center that will open next June.
Mohegan CEO Mario Kontomerkos commented, “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. “We have spent a lot of time studying the market and what makes it tick.”
Niagara Falls Mayor Diodati told reporters, “The big message we wanted to convey when we met with potential operators is that we believe there is way more potential.” He added, “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 Mohegan tribe will not be allowed to close any casino or significantly lower the number of slots or tables. As host community Niagara Falls will continue to be paid about $26 million from casino revenues.
