The Mohegan Tribal Gaming Authority, operating as Mohegan, formerly known as Mohegan Gaming & Entertainment, achieved record revenue in the third quarter of its 2024 fiscal year that ended June 30, 2024. The Connecticut-based firm, owned by the Mohegan Tribe, reported in its quarterly financial release that the $504.2 million in operating revenue generated by its domestic and international properties marked an all-time high. The company’s quarterly net revenues soared by 21.4% compared to the same period last year.
A significant contributor to this financial success was the opening of Mohegan’s Inspire Entertainment Resort at South Korea’s Incheon International Airport, near Seoul, in March. Since its grand opening on March 5, the resort has accumulated net revenues of $101.1 million, playing a crucial role in the company’s impressive earnings.
Mohegan Digital also experienced substantial growth, with net revenues rising by 151%. The company highlighted these achievements as a testament to its strategic planning and execution. “As I look across our enterprise, I feel confident about how our strategy is taking shape and I’m excited about our near and long-term prospects,” said Raymond Pineault, Mohegan CEO. He emphasized the combined contributions of profitable growth in Digital, the ramp-up at Inspire, and the continued stability and resilience of Mohegan Sun in Connecticut as key drivers for future growth.
Mohegan’s properties include Mohegan Pennsylvania, Resorts in Atlantic City, Mohegan Casino at Virgin Hotels Las Vegas, and the Niagara properties, Fallsview and Casino Niagara, in Canada. However, the company is in the process of winding down its management agreements in Las Vegas and Atlantic City by year’s end.
The financial report detailed that Mohegan’s marketing efforts in the Seoul metro area are yielding positive results. Visitation to the Inspire casino has been steadily increasing each month, from 15,803 visitors in March to 27,411 patrons by June. The first phase of the $1.6 billion integrated resort introduced 1,275 hotel rooms across three towers, a 15,000-seat arena, a year-round indoor water park enclosed in a glass dome, and an outdoor park. The casino floor features 150 live dealer table games, 374 slot machines, and a 176-seat electronic gaming stadium.
Additionally, Inspire boasts an immersive street area that’s quickly become a popular attraction. The financial summary revealed that between April and June, the casino generated gross gaming revenue (GGR) of $35.2 million from table games and $2.5 million from slot machines. The resort’s hotel rooms were occupied nearly 71% of the time at an average rate of $190 per night.
Joseph Hasson, Mohegan Chief Operating Officer, noted the significant ongoing improvement in business indicators. “When you look at July, the ramp continues and it is significant. We see it in tables, we see it in slots, and we see it across the board in nongaming revenues,” Hasson said. He expects that the ongoing ramp-up of Inspire should soon transition the resort into operational profitability.
Despite the record-breaking revenue, Mohegan faced higher operating costs, which impacted its profit margins. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 3.6%, amounting to $104.74 million. Chief Financial Officer Ari Glazer attributed this decline primarily to elevated costs and opening expenses associated with Inspire.
The financial report also indicated that Mohegan increased its advertising spending by over $20.7 million during the quarter, and gaming operating costs surged by $42 million due to various promotions aimed at drawing gamblers to Inspire. It’s noteworthy that gambling at Inspire is exclusive to foreign visitors, as South Korean residents are not permitted to enter the casino space.
