Casinos' slots revenues down in July
Editor's note: This version reflects corrected slot "win" totals.
Declines in slot-machine revenues at Foxwoods Resort Casino and Mohegan Sun returned to single digits in July, figures the casinos released Friday show.
Foxwoods, which announced Thursday that it was in talks with senior lenders after failing to comply with “certain financial covenants,” reported keeping $44.3 million in slots “win” last month, an 8.9 percent decline over July 2013.
Mohegan Sun kept $52.6 million in July, 3.6 percent less than in the same month the previous year.
A month ago, Foxwoods and Mohegan Sun reported June slots-win declines of 13.1 and 10.3 percent, respectively.
Win is the amount of slots wagers the casino keeps after paying out prizes.
Foxwoods’ “handle” — the total amount wagered at its slots — fell 7.0 percent in July, while Mohegan Sun’s handle was down 4.1 percent.
“We’re focused on profitability,” Bobby Soper, Mohegan Sun’s president and chief executive officer, said. “We feel we’re using our marketing dollars wisely. Hopefully, some months of small declines and overall stabilization are ahead in the not-too-distant future.”
Soper said Mohegan Sun continues to monitor the mix of its slot machines and has made “no material changes on the gaming floor.”
The Connecticut casinos’ slot revenues have been eroding for the past seven years, wreaking havoc with their ability to meet their financial obligations.
In 2009, the Mashantucket Pequot Tribe, which owns Foxwoods, defaulted on debt of $2.3 billion, eventually reducing it to $1.7 billion in a restructuring process concluded in July 2013. On Thursday, the casino announced that as of June 30, 2014, it was not in compliance with certain terms of the restructuring.
“That being the case, the Tribe and its financial and legal advisors have begun discussions with our lenders to address the situation,” the Mashantucket Pequot Tribal Council said in a notice distributed to tribal members.
The tribe has offered no details of its current financial predicament.
Late last month, the Mohegan Tribal Gaming Authority, which operates Mohegan Sun and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa., reported that as of June 30, 2014, it was in compliance with all of its financial covenants.
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