August 7, 2007 | last updated May 25, 2012 8:43 pm

Mohegan Sun reports profit decline due to lower slot revenues

Mohegan Sun today reported a decline in profits in the three months ending June 30, blaming growing competition from racetracks with slot machines in New York and Rhode Island.

Income from the casino's operations for the second quarter was $72.4 million, down $3.9 million, or more than 5 percent, from the same period last year.

The decline was driven by a drop in slot machine revenue, which dropped $4.3 million to $223.4 million. Mohegan Sun does not report profits for slot machines.

The decline was due to the expansion of slots at Yonkers Raceway in New York and Twin River in Lincoln, R.I., casino executives said.

In addition, 260 fewer slot machines operated at Mohegan Sun compared with the same quarter last year.

"Clearly, this quarter we learned a lot about the Northeast market," said Jeffrey Hartmann, executive vice president and chief operating officer.

The casino also is reassessing the cost of its $740 million expansion project, which includes more casino space, stores and restaurants, and a new hotel tower.

Comments

Type your comment here:

Today's Poll
ADVERTISEMENTS
Most Popular on Facebook
Copyright 2014 New England Business Media