Revenues Dip Slightly at Connecticut Casinos

Revenues Dip Slightly at Connecticut Casinos

Posted on 18/10/11 - by Theodor Mavrodis News

Connecticut's two largest casinos - Mohegan Sun and Foxwoods - reported small declines during their last fiscal year but with slots revenue improving in September for each.

The two companies (whose fiscal year ends on September 30) both reported slight declines in overall revenues for 2011 as compared to 2010, although the losses were moderate and signs of improvement were apparent in the last few months of their most recent fiscal years.

Mohegan Sun's total 2011 revenues were $711 million, down about 5% from 2010 while Foxwoods' total revenues came in at $637 million, off 2% from 2010.

Revenue from slot machines makes up the bulk of both casinos overall revenues and largely showed similar results, with slight declines overall when compared to 2010. 

Weather and Recession Causing Casino Slumps

Like other US casinos on the East coast, both Mohegan Sun and Foxwoods were negatively impacted by unusual weather and storms, with heavy snows in January and Hurricane Irene negatively impacting overall revenues.

The main drag, though, is the lingering US recession, which not only impacts casino profits but also the money the state of Connecticut receives.

The two casinos collectively generated over $350 million for state coffers, tax money that is increasingly important in Connecticut and other US states for propping up sagging state budgets.

Foxwoods is poised to host the World Poker Open international poker tournament (part of the World Poker Tour) and has added more than 1,000 new slots games during the last year, in addition to announcing plans to renovate its food, beverage, and retail operations.