Monday, February 16, 2009

Mohegan Sun Reports 8.7% Decline In January Slot Revenue

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Updated 3

Mohegan Sun reported today that its January slot revenue fell by 8.7 percent compared to last January's results.

Foxwoods reported last week that its January slot revenue fell by 7.3 percent.

Mohegan Sun's slot revenue in January was $62.4 million while Foxwoods slot revenue was $52.9 million. Both casinos contribute 25 percent of their slot revenue to the state of Connecticut.

Meanwhile, in the nation's largest gaming market, Las Vegas Strip casino revenue fell by 23 percent in December compared to the same month the year before while Atlantic City casinos recorded a decrease of 9.4 percent in its January gaming revenue compared to the year before.

The figures reported by Las Vegas and Atlantic City casinos are gaming revenues, not just slot machine revenue as is reported by the Indian casinos in Connecticut.

The December revenue reported by the casinos in Las Vegas and Nevada lag by one month from those of Atlantic City.

Las Vegas Strip casinos recorded gaming revenues of about $474 million in December. Although the Vegas casinos expect less passengers in 2009, they will have 13,000 more hotel rooms this year adding to the overhead costs.

And in the nation's second largest gaming market, the 11 casinos in Atlantic City reported about $321 million in gaming revenue for the month of January. According to figures released by New Jersey regulatory authorities, 66 percent of that revenue is from slot machines and the rest from table games. Part of the decrease was attributed to the impact of the seven slot parlors in the neighboring state of Pennsylvania (which recorded January slot revenue of $132 million) as well as New York.

According to tomorrow's Wall Street Journal (funny how we can do that, ey?), "Trump Entertainment Resorts Inc., Donald Trump's casino group, is expected to file Tuesday morning for protection from its creditors under Chapter 11 of the Bankruptcy Code, said several people familiar with the matter."

These same sources said the casino operator would either file for bankruptcy or would be forced involuntarily by creditors into bankruptcy. "Such a filing would mark the third appearance in bankruptcy court for Trump Entertainment, which most recently emerged from bankruptcy proceedings in 2005."