Mohegan Sun, Foxwood post gaming revenue declines in fiscal 2023
Mohegan Sun and Foxwoods reported declines in gaming revenue in their latest fiscal years.
In the first year of tribal casinos operating in conjunction with Connecticut-legal iGaming, brick-and-mortar casinos saw a decline in gaming operations.
Uncasville-based Mohegan Sun reported gross gaming revenue (GGR) of $598.96 million for fiscal 2023, which ended Sept. 30, according to financial disclosures. This was a decrease of 5.15% compared to the previous year.
At Foxwoods in Ledyard, retail GGR totaled $515.54 million during the same 12-month period. This represents a 1.2% decline in Tribal Casino's 2022 financial results.
Tribal Resort Sales Decline
The decline in tribal gaming was partially offset by other resort amenities.
Food and beverage sales at Mohegan Sun increased nearly 8% to $97.7 million. Hotel room revenue increased nearly 1% to $95 million, and retail and entertainment revenue increased nearly 4% to $128.4 million.
However, Mohegan Sun's consolidated net sales of $920.2 million were approximately $20 million lower than in fiscal 2022, when the integrated resort's revenue was approximately $940.3 million.
Mohegan Sun Casino spans 310,000 square feet and offers 3,495 slot machines, 245 gaming tables and a FanDuel sportsbook. The destination features a 10,000-seat concert hall, 84 dining and retail outlets and 1,562 hotel rooms.
Mohegan Sun's earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $258.2 million. That represents an 8.4% drop in profits compared to the casino's fiscal 2022.
Mohegan Sun officials said in the financial report that "lower gaming volumes and lower table holdings" were responsible for the decline in gross gaming revenue.
At Foxwoods, the casino reported "non-gaming revenue," which includes food and beverage, retail, hospitality and entertainment, of just over $177 million, up about 2 percent. Food and beverage revenue increased 11% to $47.4 million, hotel revenue was flat at $68.8 million and retail and entertainment revenue increased 5% to $60.8 million.
Foxwoods' EBITDA was approximately $110.7 million, down 16% compared to fiscal 2022 due to higher administrative expenses.
Foxwoods officials noted labor costs are $29.8 million higher than last year. The integrated resort said "other operating expenses" increased by $42.3 million. The spending was due to the hotel's "increased gaming operations and expansion of our non-gaming facilities, as well as current inflationary pressures on commodity prices."
Foxwoods’ 300,000-square-foot casino features approximately 3,300 slot machines, 250 gaming tables and DraftKings sportsbook. Three hotels offer 1,950 guest rooms, and the resort features 31 restaurants, lounges and bars.
iGaming Revenue
In addition to large resorts, Connecticut's two tribal casinos have been operating online casino games since 2021 after modifying their Level III contracts with the state. Your sportsbook partner can also accept bets remotely.
For 11 months of 2023 (December not yet reported), iGaming revenue for Tribes and its two partners (DraftKings and FanDuel) totaled more than $295.2 million.
The tribes' online sports betting operations have earned more than $85.6 million from remote bettors, totaling Internet GGR of approximately $380.8 million, with revenue for the month yet to be released.
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Source: www.casino.org
