DECLINING PERFORMANCE AT MOHEGAN SUN RAISES
FINANCIAL ISSUES FOR THE FUTURE
Despite a story in last week’s Columbian which had Mohegan tribal leaders declaring a Cowlitz casino at La Center still “viable,” the project’s principal financial backer continues to face declining performance from its major gaming properties, the Mohegan Sun in Connecticut and from their casino at Pocono Downs in Pennsylvania.
According to “The Day” in New London, CT, “The Mohegan Tribal Gaming Authority reported Thursday that their profits plunged by more than half in the third quarter of its fiscal year compared with the same period last year.” Another performance measure showed a 13.8 percent decrease in the quarter compared with last year.
Mitchell Etess, chief executive of the gaming authority and Mohegan Sun, called the performance, “disappointing,” and in a later interview said, “It really is a lack of consumer confidence and a change in people’s spending habits.”
Mohegan Tribal members receive annual payments from tribal gaming activities which are expected to reach $59 million this year. However, Chief Financial Officer Leo Chupaska said of next year’s member distribution, “I think I can safely say it will be less than the current year.”
The information was disclosed during a quarterly conference call with tribal gaming leaders and interested financial parties. The tribe is currently carrying a debt load of some $ 1.6 billion.
