Report: Mass. ‘Best Hope’ For Conn. Casinos Owners
The Northeast casino market is becoming “increasingly crowded,” making the launching of casinos in Massachusetts the best hope for tribes that run Mohegan Sun and Foxwoods in Connecticut, according to a new report from Moody’s Investor Service.
Mohegan has applied to build a casino in Palmer and the Mashantucket tribe is hoping to build a casino in Milford. "The best hope for the struggling Connecticut companies lies across the border in Massachusetts," analyst Peter Trombetta, author of the report, said in a statement.
"If they are awarded licenses to operate there, their prospects will brighten considerably, but if not, both will see continuing deterioration in gaming revenue amid competition from nearby states."
The report says Connecticut is among the states suffering the most from competition and notes gaming revenue there has been declining for the past two years, while some competitors in neighboring states are posting double-digit gains.
According to the report, "Both tribes have applied for gaming licenses in Massachusetts, and their credit quality may hang in the balance. If their bids fail, they will face continuing deterioration in gaming revenue. If they are selected, they would see their business prospects brighten considerably.”
Gaming revenue in the two-casino Connecticut gaming market has been on a steady decline for two years. Mohegan Sun and Foxwoods saw combined gaming revenue decline 10.2 percent to $1.17 billion in the 12 months that ended June 30, down from $1.3 billion the previous cycle, the report said.
Massachusetts regulators are enmeshed in the lengthy process of accepting applications, vetting and selecting operators for one slot parlor and up to three geographically separated casinos. The Mashantucket tribe’s plan for Milford is competing against plans in Everett and Boston. Mohegan is vying for the casino license in the western end of the state. Also competing for that license are proposals in Springfield and West Springfield.
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