Mohegan Gaming & Entertainment, the casino arm of Connecticut’s Mohegan Tribe, will end its management agreement at Resorts Casino Hotel in Atlantic City, NJ at the end of this year.
The Tribal gaming giant made the announcement yesterday, marking something an end of an era that saw the Tribe become the first Native American operator on the Boardwalk when it acquired a 10% in Resorts Casino in 2012. Mohegan will retain that interest after its management accord with the venue expires later this year.
Mohegan will remain as management partners through the end of December 2024, and is committed to ensuring a smooth transition process to maintain the continuity of the exceptional guest experience for which Resorts Casino Hotel is known,” according to a statement issued by the Tribe.
Resorts Casino Hotel — the oldest gaming venue on the Boardwalk – was acquired by Morris Bailey and longtime gaming executive Dennis Gomes in 2010. Following Gomes’ passing in 2012, Bailey brought on Mohegan Gaming & Entertainment to manage the casino.
Mohegan Didn’t Say Why It’s Leaving Atlantic City
The Tribe didn’t give a reason as to why it’s leaving Atlantic City nor did it mention the possibility of eventually returning to the second-largest domestic casino market behind Las Vegas.
“We entered into a management agreement with Mohegan at a time when Resorts faced many operational, economic and market challenges,” said Resorts Casino owner Morris Bailey in the statement. “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.”
It’s possible that Mohegan is looking to focus on its newly launched Inspire Entertainment Resort at Incheon International Airport in South Korea and improving casino operations at the Virgin Las Vegas.
The operator’s other North American venues include its flagship casino hotel in Uncasville, Conn., Mohegan Pennsylvania, Ilani in Ridgefield, Wa., and two properties in Niagara Falls, Ontario.
Potential Replacements for Mohegan at Resorts Casino
Neither Mohegan nor Bailey mentioned possible replacements for the Tribe in terms of managing Resorts Casino. Should Bailey opt to farm out those responsibilities, he’d have an array of commercial and Tribal entities from which to pick.
Whatever entity comes aboard to run the ship at Resorts Casino will be entering a competitive arena. The Boardwalk is home to nine casino hotels – a figure some industry observers believe is too high, implying the market is oversaturated.
Of the top 20 casinos outside of Las Vegas as measured by gross gaming revenue, three are in Atlantic City — MGM Resorts International’s Borgata, Hard Rock Atlantic City, and Ocean Casino Resort.
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