The Mohegan Tribe will officially step down from its management role at Atlantic City’s Resorts casino at the conclusion of 2024, both sides revealed on February 26.
End of deal:
This step will end the contract that the Mohegan Gaming Advisors, the gambling arm of the aforementioned tribe, offiically entered into with Resorts back in 2012, and which occured 6 months following the death of the co-owner of the casino, Dennis Gomes, the veteran gambling executive. In addition, Gomez’s death caused Resorts to be left without much-needed experience and knowledge to participate in the increasingly crowded casino market in the US northeast.
The successful operation of the tribe’s casinos in various markets involving Pennsylvania and Connecticut attracted Resorts, which led to it becoming the 1st casino in America to officially open outside of the Silver State during 1978. At the moment, the casino can thrive independently.
In this regard, the owner of Resorts, Morris Bailey, commented: “Mohegan has been a valuable partner, and we are grateful for their contribution to our success. We entered into a management agreement with Mohegan at a time when Resorts faced many operational, economic and market challenges. Mohegan brought stability and direction to Resorts by helping to assemble a stellar management team which will remain in place. We are happy that, with Mohegan’s help, Resorts has reached a point where it is able to operate independently.”
As a large portion of a 2012 agreement, the tribe purchased a 10% ownerhip stake in the Atlantic City’s Resorts, and decided to keep it. In addition, the said casino officially became the 1st casino in Atlantic City owned by an Indian Tribe.
Regarding this, CEO and president of Mohegan, Ray Pineault, commented according to the Associated Press: “We’re extremely proud of our relationship with Resorts Casino Hotel and what we have helped accomplish. We want to express our deepest gratitude to our Resorts team members, guests and the Atlantic City community for their support and dedication throughout our tenure as manager.”
Also, the president of the Resorts, Mark Giannantonio, congratulated the tribe “for the outstanding partnership over the past decade.”
Economic situation of Resorts:
The said casino collected $130.8m in gambling income during 2012, based on the gambling regulators in the state. That amount grew to $163m in 2023.
Throughout the period the tribe managed Resorts, the said casino entered into an agreement with Draftkings bookmaker and debuted an online arm called Resorts Digital, which collected more than $822m in 2023, which represents a growth of more than 50% compared to the former year. Additionally, as far as cross-marketing between Mohegan casinos and Resorts is concerned, it will be finished when 2024 officially ends. However, Resorts intends to debut fresh programs regarding marketing.
Relatedly, Mohegan Gaming Advisors is an affiliate of the Mohegan Tribal Gaming Authority.
Beside aforementioned Pennsylvania and Connecticut, Mohegan manages casinos in Nevada and Washington, including in Incheon (South Korea), Niagara Falls (Canada) and it is the owner of the Connecticut Sun WNBA team.
Mohegan INSPIRE Entertainment Resort in South Korea recieves five-star hotel rating, foreigner-only casino to open:
In other news, a long-expected Mohegan INSPIRE Entertainment Resort got awarded with five stars by Korea Tourism Association and now it can open the casino in the resort. In addition, the resort had to undergo a serious examination and comply with the requirements of the Korea Tourism Association in order to get the rating. According to Mohegan, the rating has been issued after a “rigorous assessment” that complies with the Korean Hotel Rating System. Among the conditions for achieving the rating were the quality of the facility, hygiene, as well as service standards, which had to be on the highest level.