Indian Gaming > Connecticut tribes face tough times at big casinos

November 23, 2009

Connecticut tribes face tough times at big casinos

The Danbury News-Times paints a gloomy financial picture for the Mashantucket Pequot Tribal Nation and theMohegan Tribe, whose gaming facilities have been hit hard by the national recession.

The Pequots are about to default on a $500 million loan payment. The tribe has more than $2 billion in debt incurred from the operation and expansion of Foxwoods Resort Casino and MGM Grand at Foxwoods.

The Mohegans aren't doing any better, the paper says, though the tribe just refinanced some of the $1.6 billion it carries from Mohegan Sun. But investors are getting more out of the casino than the tribe, according to the paper.

Since 2000, Solomon Kerzner and his partners earned $542 million while the tribe only earned $425 million, the paper said. Payments to investors have remained steady even as revenue falls at Mohegan Sun.

Get the Story:
Tribes teeter on financial brink (The Danbury News-Times 11/22)
As revenue falls, tribe's investors now making more than Mohegans draining assets of Mohegan tribe (The Danbury News-Times 11/22)
Foxwoods loan deals with Malaysian, Vegas investors raise concern, worsen debt (The Danbury News-Times 11/22)
State's take on slot revenues declines (The Danbury News-Times 11/22)