The coronavirus pandemic has hit many industries hard, especially those in the entertainment sector. Casinos around the world, including in the United States, have suffered from shutdowns, some opening back up to lower capacities while others are still closed. In Connecticut, the effects of the pandemic on the operating casinos is now clearly seen due to the recent 2020 fiscal reports. Casinos lost hundreds of millions, a huge number compared to what was lost the previous year.
2020 Fiscal Year Totals for Mohegan Sun
In Connecticut, the Mohegan Tribal Gaming Authority recently revealed its report for the 2020 fiscal year. This covers a twelve month time frame ending on September 30. In this year, the Mohegan Gaming & Entertainment reported a net loss of $162.1 million. This was a large drop when compared to 2019, when only $2.5 million was dropped.
The Authority did note that a large portion of the drop, $126.6 million, was a result of the impairment of intangible assets of the Mohegan Sun Pocono in the state of Pennsylvania. For the Mohegan Sun Casino in Connecticut, the yearly totals dropped around 28%. In total, the casino earned $715.7 million. The Pocono property saw a similar decrease, with only $181.2 million in earnings.
The company is doubtful that they will be able to make enough to pay on the debt they have due in October. As much as $615 million is owned. While the company is struggling to find earnings within its Mohegan properties, there is no plans to expand furloughs or layoffs right now.
The casinos in Connecticut were closed in mid-March and did not reopen until June. Once back in business, restrictions were in place to ensure that players and employees were safe.
The rival of the Mohegan Sun in Connecticut is the Foxwoods Resort Casino. This property is operated by the Mashantucket Pequot Tribal Nation. For the 2020 fiscal year, this casino saw a drop of 31.6% with only $539.2 million in earnings.
Due to the strain on both operators, the Mashantucket and Mohegan, the two decided to wait on a proposed casino in East Windsor. The financial strain has made it difficult for the operators to figure out how to move forward with the proposed casino, as it has a price tag of $300 million.
Mohegan Gaming & Entertainment decided to push back a project in South Korea as well. The operator had plans to create a casino in the region, but the financials just aren’t there.
Both of the casinos in Connecticut must pay 25% of slot earnings to the state. So the decrease they are seeing not only affects their bottom line, but also the payments to the state. Neither one of the property’s expects to see a rebound this year, so it could be quite some time before earnings are back to normal.
One bright light might be sports betting. The state does have plans to legalize the option t