The Mohegan tribe will conclude its management of Atlantic City’s Resorts Casino Hotel at the end of this year, as announced by both parties on Monday.
The decision marks the conclusion of an agreement made in 2012 by the tribe’s gambling arm, Mohegan Gaming Advisors, following the death of the casino’s co-owner, Dennis Gomes. Gomes’ passing in 2012 left Resorts without vital experience, impacting its competitiveness in the increasingly crowded northeastern U.S. casino market, The Associated Press reported.
Mohegan Gaming Advisors, with a successful track record in casino operations in Connecticut and Pennsylvania, became an appealing partner for Resorts in 2012. Resorts, the first U.S. casino outside Nevada when it opened in 1978, now asserts its ability to stand independently.
“Mohegan has been a valuable partner, and we are grateful for their contribution to our success. We entered into a management agreement with Mohegan at a time when Resorts faced many operational, economic and market challenges,” Morris Bailey, who owns Resorts, was quoted as saying in the report.
“Mohegan brought stability and direction to Resorts by helping to assemble a stellar management team that will remain in place. We are happy that, with Mohegan’s help, Resorts has reached a point where it is able to operate independently.”
As part of the 2012 deal, Mohegan acquired a 10% ownership interest in Resorts, which it will retain. This arrangement made Resorts the first Atlantic City casino operated by a Native American tribe.
“We’re extremely proud of our relationship with Resorts Casino Hotel and what we have helped accomplish. We want to express our deepest gratitude to our Resorts team members, guests and the Atlantic City community for their support and dedication throughout our tenure as manager,” Ray Pineault, president and CEO of Mohegan, said.
Despite being the second-smallest casino in Atlantic City, Resorts maintained relevance and competitiveness under Mohegan’s management. Resorts and Mohegan were early adopters of digital gambling, capitalizing on online casinos and legal sports betting in New Jersey.
In 2012, Resorts reported $130.8 million in gambling revenue, which increased to $163 million last year, according to state gambling regulators.
During Mohegan’s management tenure, Resorts signed a deal with DraftKings sportsbook and launched an online operation—Resorts Digital, generating over $822 million last year, a 50% increase from the previous year.
Cross-marketing between Resorts and Mohegan casinos will cease at the end of this year. Resorts plans to initiate new marketing programs moving forward, the report said.
Mohegan Gaming Advisors operates as a subsidiary of the Mohegan Tribal Gaming Authority. In addition to Connecticut and Pennsylvania, Mohegan operates casinos in Washington and Nevada; Niagara Falls, Canada, and Inchon, South Korea. The entity also owns the Connecticut Sun WNBA team.
Original article: https://www.yogonet.com/international/noticias/2024/02/27/71000-mohegan-tribe-to-end-management-of-resorts-casino-in-atlantic-city
