ATLANTIC CITY, N.J. (AP) — The Mohegan tribe will end its management of Atlantic City's Resorts casino at the end of this year, both parties said Monday.
The move will conclude an agreement the tribe's gambling arm, Mohegan Gaming Advisors, made with Resorts in 2012 six months after the casino's co-owner, veteran gambling executive Dennis Gomes, died.
Gomes' death left Resorts without crucial experience and know-how to compete in the ever-more-crowded northeastern U.S. casino market.
Mohegan's successful operation of casinos in markets including Connecticut and Pennsylvania made it attractive to Resorts, which in 1978 became the first casino in the United States to open outside Nevada.
Now, Resorts says, the casino is able to stand on its own two feet.
“Mohegan has been a valuable partner, and we are grateful for their contribution to our success,” said Morris Bailey, who owns Resorts. “We entered into a management agreement with Mohegan at a time when Resorts faced many operational, economic and market challenges. Mohegan brought stability and direction to Resorts by helping to assemble a stellar management team which 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. Resorts became the first Atlantic City casino to be run by a Native American tribe.
“We’re extremely proud of our relationship with Resorts Casino Hotel and what we have helped accomplish,” said Ray Pineault, president and CEO of Mohegan. “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.”
Mark Giannantonio, Resorts president, praised Mohegan “for the outstanding partnership over the past decade.”
Resorts had $130.8 million in gambling revenue in 2012, according to state gambling regulators. That total increased to $163 million last year.
During the time Mohegan managed Resorts, the casino signed a deal with DraftKings sportsbook and launched an online operation — Resorts Digital, which took in over $822 million last year, an increase of over 50% from the previous year.
Cross-marketing between Resorts and Mohegan casinos will end at the end of this year, but Resorts plans to launch new marketing programs.
Mohegan Gaming Advisors is 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. It also owns the Connecticut Sun WNBA team.
___
Follow Wayne Parry on X, formerly Twitter, at www.twitter.com/WayneParryAC
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Which stocks are major institutional investors including hedge funds and endowments buying in today's market? Click the link below and we'll send you MarketBeat's list of thirteen stocks that institutional investors are buying up as quickly as they can.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
