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    Thursday, August 11, 2022

    Annual reports: Casino revenues dipped in fiscal ’18

    Revenues at southeastern Connecticut's two casinos fell slightly in the last fiscal year, annual reports show.

    Mohegan Sun’s net revenue in the fiscal year that ended Sept. 30 was down 1 percent over the previous 12 months, dipping to $1.07 billion from $1.08 billion, according to Mohegan Gaming & Entertainment’s end-of-year filing with the U.S. Securities and Exchange Commission.

    Foxwoods Resort Casino, which posted its annual report on the website of the Electronic Municipal Markets Access system, reported that its net revenue for the 2018 fiscal year totaled $828.9 million, a 2.3 percent decline over the previous year’s $848.1 million.

    The casinos, owned by the Mohegan and Mashantucket Pequot tribes, respectively, posted their annual reports last month.

    MGE, the corporate entity that comprises Mohegan Sun, Mohegan Sun Pocono in Wilkes-Barre, Pa., and other gaming enterprises around the country, reported that the company’s overall revenues were $1.36 billion, down 1.8 percent over the previous year’s $1.38 billion.

    The $1.07 billion in net revenue attributed to Mohegan Sun includes revenues generated by the Uncasville casino, the Mohegan Sun Golf Club in Baltic and the Mohegan Tribe’s two professional sports franchises, the Connecticut Sun of the Women’s National Basketball Association and the New England Black Wolves of the National Lacrosse League.

    Mohegan Sun Pocono’s net revenue last year was $265.7 million, reflecting a 4.7 percent decline over the previous year.

    In its report, MGE said Mohegan Sun’s decrease in revenue was primarily the result of lower slot-machine revenue “driven by declines in both volumes and hold percentage” and lower entertainment revenues “driven, in part, by a weaker overall entertainment calendar featuring fewer headliner shows.” The declines were partially offset by an increase in table-games revenue, according to the report.

    Foxwoods’ report shows that its gaming and nongaming revenue fell by the same percentage. A decline in table-games revenue offset an increase in slots revenue.

    Both reports list what the casino owners describe as “substantial” debt, which, in each case, is about $1.9 billion.

    The casinos’ reports provide information about the size of their workforces, which have shrunk in recent years.

    MGE’s report indicates that as of Sept. 30, its Connecticut operations employed about 4,810 full-time employees and 2,140 seasonal, part-time and on-call employees. In Pennsylvania, the company employed another 820 full-timers and 425 seasonal, part-time and on-call workers.

    Foxwoods employed about 5,700 full- and part-time employees as of Sept. 30. It reported that in the 2018 fiscal year, its payroll costs, excluding severance, decreased by $10.7 million, or 3.6 percent, over fiscal 2017. The number of “full-time equivalents,” or FTEs, was reduced by 250, or 5.1 percent, the casino’s report says.

    Regarding executive compensation, MGE reports that its chief executive officer, Mario Kontomerkos, and its chief operating officer, Thomas Burke, who retired at the end of 2018, each received more than $1 million in compensation in the last fiscal year. In accordance with SEC rules, MGE calculated its “CEO pay ratio,” comparing Kontomerkos’ compensation with that of the company’s “median employee.” It found that Kontomerkos’ fiscal 2018 compensation of $1,376,300 was 63 times as much as the median employee’s compensation of $21,711.

    Foxwoods’ report does not list executive compensation.

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