Casinos posted revenue, profit gains in 2016 fiscal year
Both of the region’s tribally owned casinos posted revenue gains in the fiscal year that ended Sept. 30, annual reports filed this week show.
Mohegan Sun, the Mohegan Tribal Gaming Authority’s flagship casino, had net revenues of $1.02 billion, a 2.8 percent increase over the $994 million it earned in the previous year. Mohegan Sun’s finances are combined with those of the authority’s other operations in Connecticut, including the Connecticut Sun WNBA franchise, the Mohegan Sun Golf Club and the New England Black Wolves of the National Lacrosse League.
Mohegan Sun Pocono, the authority’s racetrack casino in Wilkes-Barre, Pa., had net revenues of $298.7 million, a 1.2 percent increase over the previous year. Overall, the gaming authority’s net revenues in fiscal 2016 totaled $1.33 billion, up 3.3 percent over the previous year.
The authority’s annual report appears on the website of the U.S. Securities and Exchange Commission.
Foxwoods Resort Casino’s net revenues were $858.2 million in fiscal 2016, a year-over-year increase of 1.5 percent, according to the Mashantucket Pequot-owned enterprise’s report, posted on the website of the Electronic Municipal Markets Access system.
The report indicates the Mashantuckets’ forbearance agreement with its senior lenders, first entered into on Sept. 25, 2014, has been extended through Dec. 31, 2017. In August 2014, the tribe acknowledged that it was not in compliance with the terms of a 2013 debt-restructuring agreement.
As of Sept. 30, the tribe’s outstanding debt exceeded $1.8 billion.
“We’re quite satisfied with the fiscal year we had,” Bobby Soper, the Mohegan gaming authority’s president and chief executive officer, said Thursday. "There was growth in revenue and profit. … It’s partly a reflection that consumer confidence has increased some and partly the work of our whole team across our properties. We continue to innovate."
Foxwoods executives did not immediately respond to a request for comment.
In its annual report, the Mohegan gaming authority reported net income — profit — of $133 million for fiscal 2016, a 4.4 percent increase over the previous year. Foxwoods reported net income of $64 million, up 70 percent over the previous year.
Soper was reluctant to predict whether the upturn in his casino’s fortunes is likely to continue in 2017.
“The trends are clearly more positive,” he said. “We saw stabilization in the impacts of the economy and we’re now starting to see growth. We’ll have to see how the general economy performs and whether consumer confidence continues to improve.”
He noted that no new direct competition is scheduled to come online next year. MGM Springfield, a $950 million resort casino under construction in Massachusetts, is scheduled to open in late 2018.
The Mohegans and the Mashantuckets are jointly pursuing a casino project in the Hartford area to offset the anticipated impact of MGM Springfield. Soper said the tribes still intend to settle on a proposed casino site during the upcoming session of the General Assembly, which has yet to consider approving commercial, off-reservation gaming in the state.
In fiscal 2016, the Mohegan gaming authority’s top three executives were paid more than $1 million apiece, the authority's annual report shows.
Soper received a base salary of more than $1 million as well as a cash bonus of $500,000. Mario Kontomerkos, the chief financial officer, received a base salary of $823,000 and a cash bonus of $400,000. Tom Burke, the chief operating officer, received a base salary of $720,000 and a cash bonus of $350,000.
Foxwoods’ annual report does not list executives’ compensation.
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