Mohegan Reports Highest Revenue Total in Company History During Q3

The Mohegan Tribal Gaming Authority reported record revenue totals during the third quarter of the company’s fiscal year calendar that ended on June 30.

The company generated $504.23 million in operating revenue across its American and international entities. That total represented a 21.4 percent year-over-year growth, a staggering amount even in the era of gambling proliferation.

Mohegan’s digital revenues also climbed $41.8 million, or 151.3 percent of the total reported at the same time a year ago.

Expanded efforts

Mohegan owns and operates land-based casino-resorts in Connecticut, Nevada, New Jersey,  Ontario, Pennsylvania, and South Korea. It also offers its online casino platform to customers in New Jersey and Pennsylvania.

The company’s South Korea property, known as the Mohegan INSPIRE Entertainment Resort, opened for business in March. Its digital platform began accepting customers in April.

“The combination of profitable growth in Digital, the ramp at INSPIRE since the grand opening in March, combined with the stability and resilience of our flagship, Mohegan Sun in Connecticut, highlights some of the important drivers for our growth in the present and future,” said Raymond Pineault, Mohegan’s Chief Executive Officer.

INSPIRE, which cost $1.6 billion and has a 15,000-seat arena, 1,275 hotel rooms, an indoor water park, and a massive casino floor, generated gross gaming revenue of $35.2 million from table games and $2.5 million from slots from April to June.

Mohegan poured its resources into increasing its presence in the South Korean capital of Seoul, which is only one hour away from the casino. However, the resort is not available for South Korean residents due to the country’s gambling laws.

INSPIRE welcomed 27,411 patrons in June compared to just 15,803 in March.

Growth leads to profitability

Despite Mohegan enjoying its most fruitful quarter ever from a revenue perspective, its earnings, while still substantial, fell compared to its 2023 total.

"Consolidated Adjusted EBITDA of $104.7 million decreased $3.9 million compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan INSPIRE and non-controlling interest adjustments at Niagara Resorts, offset by strong growth in our Digital operations,” said Mohegan Chief Financial officer Ari Glazer. “Excluding the adjustment of non-controlling interest at Niagara Resorts, Adjusted EBITDA would have been $108.3 million or flat to prior year."

Nonetheless, the increase in INSPIRE’s visitors indicates that the high operating costs are producing the desired effect on the company’s business. 

Mohegan Chief Operating Officer Joseph Hasson also said that an average of nearly 71 percent of hotel rooms were occupied at a cost of $190. The improving business at the resort should soon make it profitable, per Hasson.