The Mohegan Tribe of Connecticut -- an investor in the Cowlitz Tribe’s casino proposal for nearly five years -- is reeling under a series of financial challenges.
For the past few quarters, its mother ship, the Mohegan Sun casino in Uncasville, Conn., has experienced significant declines in gambling revenue. In September the Mohegan Tribe put its $734 million casino expansion on hold. In November its credit rating took a hit when Moody’s Investors Service lowered it from Ba2 to B1, a rating indicating securities that “lack characteristics of a desirable investment.”
Then, in early January, the U.S. Department of the Interior rejected a casino proposal from the Mohegan Tribe’s Wisconsin-based partner, the Menominee Tribe. The Menominee and Mohegan tribes had been working together for at least six years in an effort to develop a $1 billion casino at Kenosha, Wis.
The next week, The Day newspaper out of Connecticut reported that Mohegan tribal and casino officials had “presented a sweeping plan to rein in costs in the face of declining casino revenues and dire economic forecasts.” It includes salary cuts for all 9,800 casino employees, suspended 401(k) matches, a reduction in number of employees, reduced casino profit distributions to tribe members and discontinued construction of an $80 million community center.
Despite its troubles at home, the Mohegan Tribe is continuing its uphill battle with the proposed Cowlitz casino and supporting the Menominee Tribe’s plans to fight the federal government for approval of its proposed casino.
Tuesday, January 27, 2009
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