Gambling in the USA
Mohegan Gaming & Entertainment Announces Second Quarter Fiscal 2019 Operating Results
Mohegan Gaming & Entertainment , a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut and Inspire Korea in Incheon, South Korea, announced today operating results for its second fiscal quarter ended March 31, 2019.
“Volume trends across our portfolio remain inline to better than expected as overall gaming volumes at our flagship property, Mohegan Sun, remain robust despite completing our second full quarter of increased competitive pressure in the Northeast,” said Mario Kontomerkos, President & Chief Executive Officer. “Adjusting for unusually low table hold, overall MGE EBITDA would have been largely in line with our expectations, flat with last year’s comparable period, and well ahead of recent fiscal year 1Q19 performance. At the same time, non-gaming results continue to be healthy and remain a driving factor for our growth at Mohegan Sun. These revenue enhancements have been driven, in part, by the recent adoption of our $100 million revenue and cost improvement program – a plan we remain committed to delivering over the next several years. Outside of the Northeast, cash flows from our managed portfolio grew strongly, up 86% year over year. Looking ahead, in June we expect to assume operational control of two major Niagara Falls, Canada assets which will mark the first international operations for MGE and will provide increased earnings and cash flow diversity for our stakeholders. Similarly, we have begun to mobilize construction at our development site in Incheon, South Korea, having completed our negotiations with our general contractor and following the receipt of all necessary construction permits and approvals.”
Selected consolidated operating results for the second quarter ended March 31, 2019, and prior year period (unaudited):
- Net revenues of $307.7 million vs. $332.0 million in the prior year period, a 7.3% decrease; and
- Income from operations of $22.2 million vs. $56.1 million in the prior year period, a 60.4% decrease primary driven by one time accelerated depreciation due to the closure of Casino of Wind; and
- Adjusted EBITDA of $67.2 million vs. $79.9 million in the prior year period, a 15.9% decrease.
Consolidated net revenues and Adjusted EBITDA declined during the quarter, driven by lower gaming revenues at Mohegan Sun and Mohegan Sun Pocono largely driven by unfavorable hold in the quarter at both properties. These declines were partially offset by improved non-gaming revenue growth, including entertainment and hotel revenues, at Mohegan Sun, as well as stronger Corporate Adjusted EBITDA, driven by tighter expense management and improved financial performance at ilani Casino Resort.
On October 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), on a modified retrospective basis. As such, results for the three months and six months ended March 31, 2019 in this release are presented under this new guidance, while results for the three months and six months ended March 31, 2018 remain presented under prior guidance. For comparative results for all periods as reported under the new guidance, please see our supplemental earnings deck, available on our website (https://mohegangaming.com/financial-information/).
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Mohegan Sun |
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Operating results (in thousands, unaudited): |
|||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
March 31,  |
Percentage |
|||||
|
2019 |
2018 |
Variance |
Variance |
||||
|
Net revenues |
$ 238,391 |
$ 260,354 |
$ (21,963) |
(8.4%) |
|||
|
Income from operations (1) |
$ 19,913 |
$ 57,779 |
$ (37,866) |
(65.5%) |
|||
|
Adjusted EBITDA |
$ 59,341 |
$ 77,746 |
$ (18,405) |
(23.7%) |
|||
|
(1) Includes $21.6 million in accelerated depreciation related to Casino of the Wind. |
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Net revenues and Adjusted EBITDA declined during the quarter, driven by lower overall gaming revenues and unfavorable table hold during the period, which was partially offset by stronger non-gaming results. Slot and table volumes declined 8.7% and 3.2%, respectively, in line with internal expectations. Had table hold percentage fallen into the historically normal range, net Revenues and Adjusted EBITDA would have declined less than 3.1% and 7.4%, respectively, on a 606 to 606 basis. Non-gaming revenues increased during the quarter, driven by improvement in nearly all segments of the business. The higher than normal decline in income from operations relates to the one-time accelerated depreciation expense of $21.6 million, caused by the closure of the Casino of the Wind in March, as that space will be designed and repurposed for higher and better use.
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Mohegan Sun Pocono |
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Operating results (in thousands, unaudited): |
|||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
March 31, |
Percentage |
|||||
|
2019 |
2018 |
Variance |
Variance |
||||
|
Net revenues |
$ 61,241 |
$ 67,130 |
$ (5,889) |
(8.8%) |
|||
|
Income from operations |
$ 8,214 |
$ 8,872 |
$ (658) |
(7.4%) |
|||
|
Adjusted EBITDA |
$ 11,592 |
$ 12,230 |
$ (638) |
(5.2%) |
|||
Net revenues declined during the quarter driven by lower gaming revenues, largely reflecting the adverse impact from lower table hold. However, the year-over-year decline in Adjusted EBITDA was more muted due to a strong focus expense management, including lower payroll costs and certain casino marketing and promotional expenses. Notably, local marketing activity has started to return to more normalized levels following aggressive promotional activity from a regional competitor over the last several quarters.
|
Corporate |
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Operating results (in thousands, unaudited): |
|||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
March 31, |
Percentage |
|||||
|
2019 |
2018 |
Variance |
Variance |
||||
|
Net revenues |
$ 8,125 |
$ 4,593 |
$ 3,532 |
76.9% |
|||
|
Loss from operations |
$ (5,901) |
$ (10,579) |
$ 4,678 |
44.2% |
|||
|
Adjusted EBITDA |
$ (3,716) |
$ (10,122) |
$ 6,406 |
63.3% |
|||
The increase in net revenues and Adjusted EBITDA was primarily due to higher management fees from ilani Casino Resort driven by continued improvement in performance at the property.
|
MGE Property Information |
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|
Net Revenues |
Income (Loss) from Operations |
Adjusted EBITDA |
|||||||||||
|
(in thousands, unaudited) |
For the Three Months Ended |
For the Three Months Ended |
For the Three Months Ended |
||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, |
March 31, |
March 31, |
||||||||
|
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
||||||||
|
Mohegan Sun |
$ 238,391 |
$ 260,354 |
$ 19,913 |
$ 57,779 |
$ 59,341 |
$ 77,746 |
|||||||
|
Mohegan Sun Pocono |
61,241 |
67,130 |
8,214 |
8,872 |
11,592 |
12,230 |
|||||||
|
Corporate |
8,125 |
4,593 |
(5,901) |
(10,579) |
(3,716) |
(10,122) |
|||||||
|
Inter-segment revenues |
(60) |
(60) |
– |
– |
– |
– |
|||||||
|
Total |
$ 307,697 |
$ 332,017 |
$ 22,226 |
$ 56,072 |
$ 67,217 |
$ 79,854 |
|||||||
Other Information
Liquidity
As of March 31, 2019, MGE held cash and cash equivalents of $91.4 million, compared to $103.9 million as of September 30, 2018. As of March 31, 2019, $55.0 million was drawn on MGE’s $250.0 million revolving credit facility, while no amounts were drawn on MGE’s $25.0 million line of credit. As of March 31, 2019, letters of credit issued under the revolving credit facility totaled $2.3 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, MGE had approximately $192.7 million of borrowing capacity under its revolving credit facility and line of credit as of March 31, 2019.
About Mohegan Gaming & Entertainment:
Mohegan Gaming & Entertainment is a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut, and Inspire in Incheon, South Korea. The Company is owner, developer, and/or manager of integrated entertainment resorts throughout the United States, including Connecticut, New Jersey, Washington, Pennsylvania, Louisiana, Northern Asia, and, beginning in mid-2019, Niagara Falls, Canada. MGE owns and operates Connecticut Sun, a professional basketball team in the Women’s National Basketball Association, and the New England Black Wolves, a professional lacrosse team in the National Lacrosse League. For more information on MGE and our properties, visit www.mohegangaming.com.
SOURCE Mohegan Gaming & Entertainment
Gambling in the USA
Abbiati Casino Equipment and Hawkins Holdings Form Strategic Alliance to Expand Presence Across the Americas
Abbiati Casino Equipment, a globally recognised leader in premium casino equipment and technologies, announced a strategic partnership with Hawkins Holdings to strengthen its presence across North and South America. As part of this initiative, seasoned gaming executive Roger Hawkins has been appointed Brand Ambassador and Strategic Consultant for the Americas.
With more than 20 years of executive leadership in the global casino and gaming industry, Hawkins will spearhead the company’s efforts to expand its footprint throughout the Western Hemisphere. His role will include market development, strategic partnerships, regulatory positioning, and the promotion of Abbiati’s legacy of Italian innovation, craftsmanship, and integrity.
“This partnership is about more than market entry – it’s about building deeper awareness, driving product adoption, and reinforcing Abbiati’s commitment to quality across every pit and poker room in the hemisphere,” said Hawkins.
Giorgio Abbiati, CEO of Abbiati Casino Equipment, said: “We have proudly served clients in the Americas for many years, but the time is right to deepen our focus. Roger’s knowledge of our products and his insight into the market make him the ideal partner to lead this next phase.”
Gambling in the USA
Catawba Two Kings Casino Resort Rising in Kings Mountain as First Year of Construction is Completed
Significant construction has been completed during the first year of work on the $1 billion Catawba Two Kings Casino Resort in Kings Mountain, N.C., a site off Interstate-85 only 35 miles from Charlotte and close to the South Carolina border.
Construction on all aspects of the project is in full swing, with the foundations for the casino complex and hotel completed several months ago, the casino complex at its full height and expanding horizontally, and steel continuing to rise for the 24-story, 385-room hotel. The hotel tower framing is now 10 stories high, with an additional floor being added nearly every week. At completion, the hotel will be connected to the casino complex.
The casino complex includes the introductory casino on the first level, three levels of covered parking, a back-of-house level and top level with the main casino floor and restaurants. The introductory casino, set to open in spring 2026, will include 1350 slot machines, 20 table games, a 40-seat restaurant, a bar, sports betting kiosks, and Lucky North Rewards desk.
The introductory casino will replace the current temporary (prelaunch) casino, which continues to grow in popularity as it nears its fourth anniversary on July 1.
The main casino complex is targeted to open in 2027. It will be about 2 million square feet and feature:
• 4300 slot machines
• 100 table games
• 11 dining outlets, including a steakhouse, Italian restaurant, marketplace with six venues, café, and grab-and-go outlet
• A players lounge
• 11 bars, including a center bar and sports bar
• A 2700-space parking garage built under the casino complex and 800 surface parking spaces
The project has created hundreds of construction jobs. Upon completion, the casino resort will employ an estimated 2200 regional residents and citizens of the Catawba Nation.
“This casino resort will be an economic game changer for Catawba citizens and a force to drive the economy of Cleveland County and the City of Kings Mountain. This project is a testament to our resilience, our commitment to self-sufficiency, and our determination to build a better future for ourselves and our future generations,” Catawba Nation Chief Brian Harris said.
Harris noted the temporary casino is contributing to many community and charitable organizations in the region, and that will only increase as the full casino resort opens.
The project is being led by the Catawba Nation Gaming Authority under Vice President Trent Troxel, with Yates-Metcon as the construction general contractor; Delaware North as the gaming management, development and hospitality consultant; and SOSHNY Design architects.
“Once again, I want to thank the Cleveland County, City of Kings Mountain, federal and state leaders who have supported the Catawba Nation’s efforts develop the casino resort in its ancestral lands in North Carolina,” Harris said.
Work has also been completed on two key infrastructure projects for development of the permanent casino resort that were funded by the Catawba Nation: doubling the size of the Dixon School Road Bridge over I-85 near the casino entrance and installing new sewer lines near the casino.
Gambling in the USA
Seminole Hard Rock Hotel & Casino Tampa Named Luckiest Casino in US by Casinos.com
Seminole Hard Rock Hotel & Casino Tampa has been named the luckiest casino in the US according to a recent study conducted by Casinos.com. The resort claimed the top spot based on an in-depth analysis of Tripadvisor reviews, measuring the frequency of luck-related keyword mentions.
With a 25.49% luck rate, Seminole Hard Rock Tampa topped the list thanks to glowing guest feedback, including frequent mentions of jackpots, hand pays and bonus wins. 50 reviews mentioned the word “jackpot,” and 19 even referenced a “hand pay.”
Casinos.com tracked keywords such as lucky, luck, won, winning, success, jackpot, hand pay, winner, bonus, profit to determine which U.S. casinos inspired the most winning moments among visitors.
“I hit 4 jackpots. I stayed one night. I had a blast. The machines are as loose as anywhere else,” wrote one Tripadvisor reviewer, noted Casinos.com, capturing the essence of why the casino landed in the No. 1 spot.
“We’ve always known this was a lucky casino, but it’s exciting to see that recognized through data-driven research. It’s a testament to the vibrant energy on our casino floor and the unforgettable experiences we strive to create for every guest,” said Steve Bonner, President of Seminole Hard Rock Hotel & Casino Tampa.
The ranking reinforces Seminole Hard Rock Tampa’s reputation as one of the premier gaming and entertainment destinations in the US. Seminole Hard Rock Tampa was not involved in the study and was unaware of it until the results were publicly released.
Over the past year, Seminole Hard Rock Tampa has paid out nearly 839,000 jackpots totaling more than $2.45 billion, continuing to deliver thrilling high-stakes gaming. Since May 1, 2024, the casino resort has awarded 375 jackpots of $100,000 or more, amounting to an impressive $61 million in winnings. Notably, 47 of those massive wins stemmed from bets of $5 or less and nine came from wagers of $3 or less.
Seminole Hard Rock Tampa offers a fully integrated casino experience with a sleek, modern design and welcoming atmosphere of 245,000 square feet of gaming space and entertainment. With 5230 of the hottest slot machines and a full range of table games such as poker, blackjack and baccarat, there is no shortage of opportunities to win. Additionally, guests can enjoy live craps, roulette, and sports betting at their leisure.
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