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Mohegan Gaming & Entertainment Announces Second Quarter Fiscal 2019 Operating Results

George Miller

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Mohegan Gaming & Entertainment Announces Second Quarter Fiscal 2019 Operating Results
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Mohegan Gaming & Entertainment , a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut and Inspire Korea in Incheon, South Korea, announced today operating results for its second fiscal quarter ended March 31, 2019.

“Volume trends across our portfolio remain inline to better than expected as overall gaming volumes at our flagship property, Mohegan Sun, remain robust despite completing our second full quarter of increased competitive pressure in the Northeast,” said Mario Kontomerkos, President & Chief Executive Officer.  “Adjusting for unusually low table hold, overall MGE EBITDA would have been largely in line with our expectations, flat with last year’s comparable period, and well ahead of recent fiscal year 1Q19 performance.  At the same time, non-gaming results continue to be healthy and remain a driving factor for our growth at Mohegan Sun.  These revenue enhancements have been driven, in part, by the recent adoption of our $100 million revenue and cost improvement program – a plan we remain committed to delivering over the next several years.  Outside of the Northeast, cash flows from our managed portfolio grew strongly, up 86% year over year.  Looking ahead, in June we expect to assume operational control of two major Niagara Falls, Canada assets which will mark the first international operations for MGE and will provide increased earnings and cash flow diversity for our stakeholders.  Similarly, we have begun to mobilize construction at our development site in Incheon, South Korea, having completed our negotiations with our general contractor and following the receipt of all necessary construction permits and approvals.”

Selected consolidated operating results for the second quarter ended March 31, 2019, and prior year period (unaudited):

  • Net revenues of $307.7 million vs. $332.0 million in the prior year period, a 7.3% decrease; and
  • Income from operations of $22.2 million vs. $56.1 million in the prior year period, a 60.4% decrease primary driven by one time accelerated depreciation due to the closure of Casino of Wind; and
  • Adjusted EBITDA of $67.2 million vs. $79.9 million in the prior year period, a 15.9% decrease.

Consolidated net revenues and Adjusted EBITDA declined during the quarter, driven by lower gaming revenues at Mohegan Sun and Mohegan Sun Pocono largely driven by unfavorable hold in the quarter at both properties.  These declines were partially offset by improved non-gaming revenue growth, including entertainment and hotel revenues, at Mohegan Sun, as well as stronger Corporate Adjusted EBITDA, driven by tighter expense management and improved financial performance at ilani Casino Resort.

On October 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), on a modified retrospective basis.  As such, results for the three months and six months ended March 31, 2019 in this release are presented under this new guidance, while results for the three months and six months ended March 31, 2018 remain presented under prior guidance.  For comparative results for all periods as reported under the new guidance, please see our supplemental earnings deck, available on our website (https://mohegangaming.com/financial-information/).

Mohegan Sun

Operating results (in thousands, unaudited):





For the Three Months Ended  



March 31,



March 31,







Percentage



2019



2018



Variance



 Variance

Net revenues

$               238,391



$           260,354



$        (21,963)



(8.4%)

Income from operations (1)

$                 19,913



$             57,779



$        (37,866)



(65.5%)

Adjusted EBITDA

$                 59,341



$             77,746



$        (18,405)



(23.7%)

















(1) Includes $21.6 million in accelerated depreciation related to Casino of the Wind.

Net revenues and Adjusted EBITDA declined during the quarter, driven by lower overall gaming revenues and unfavorable table hold during the period, which was partially offset by stronger non-gaming results.  Slot and table volumes declined 8.7% and 3.2%, respectively, in line with internal expectations.  Had table hold percentage fallen into the historically normal range, net Revenues and Adjusted EBITDA would have declined less than 3.1% and 7.4%, respectively, on a 606 to 606 basis.  Non-gaming revenues increased during the quarter, driven by improvement in nearly all segments of the business.  The higher than normal decline in income from operations relates to the one-time accelerated depreciation expense of $21.6 million, caused by the closure of the Casino of the Wind in March, as that space will be designed and repurposed for higher and better use.

Mohegan Sun Pocono

Operating results (in thousands, unaudited):





For the Three Months Ended  



March 31,



March 31,







Percentage



2019



2018



Variance



 Variance

Net revenues

$                 61,241



$             67,130



$          (5,889)



(8.8%)

Income from operations 

$                   8,214



$               8,872



$             (658)



(7.4%)

Adjusted EBITDA 

$                 11,592



$             12,230



$             (638)



(5.2%)

Net revenues declined during the quarter driven by lower gaming revenues, largely reflecting the adverse impact from lower table hold.  However, the year-over-year decline in Adjusted EBITDA was more muted due to a strong focus expense management, including lower payroll costs and certain casino marketing and promotional expenses. Notably, local marketing activity has started to return to more normalized levels following aggressive promotional activity from a regional competitor over the last several quarters.

Corporate

Operating results (in thousands, unaudited):





For the Three Months Ended  



March 31,



March 31,







Percentage



2019



2018



Variance



 Variance

Net revenues

$                   8,125



$               4,593



$            3,532



76.9%

Loss from operations

$                 (5,901)



$            (10,579)



$            4,678



44.2%

Adjusted EBITDA

$                 (3,716)



$            (10,122)



$            6,406



63.3%

The increase in net revenues and Adjusted EBITDA was primarily due to higher management fees from ilani Casino Resort driven by continued improvement in performance at the property.

MGE Property Information









Net Revenues



Income (Loss) from Operations



Adjusted EBITDA

(in thousands, unaudited)



      For the Three Months Ended



For the Three Months Ended



For the Three Months Ended







March 31,



March 31,



March 31,



March 31,



March 31,



March 31,







2019



2018



2019



2018



2019



2018

Mohegan Sun





$         238,391



$        260,354



$           19,913



$           57,779



$           59,341



$           77,746

Mohegan Sun Pocono



61,241



67,130



8,214



8,872



11,592



12,230

Corporate





8,125



4,593



(5,901)



(10,579)



(3,716)



(10,122)

Inter-segment revenues



(60)



(60)









Total





$         307,697



$        332,017



$           22,226



$           56,072



$           67,217



$           79,854

Other Information

Liquidity

As of March 31, 2019, MGE held cash and cash equivalents of $91.4 million, compared to $103.9 million as of September 30, 2018.  As of March 31, 2019, $55.0 million was drawn on MGE’s $250.0 million revolving credit facility, while no amounts were drawn on MGE’s $25.0 million line of credit.  As of March 31, 2019, letters of credit issued under the revolving credit facility totaled $2.3 million, of which no amounts were drawn.  Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, MGE had approximately $192.7 million of borrowing capacity under its revolving credit facility and line of credit as of March 31, 2019.

 

About Mohegan Gaming & Entertainment:

Mohegan Gaming & Entertainment is a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut, and Inspire in Incheon, South Korea.  The Company is owner, developer, and/or manager of integrated entertainment resorts throughout the United States, including Connecticut, New Jersey, Washington, Pennsylvania, Louisiana, Northern Asia, and, beginning in mid-2019, Niagara Falls, Canada.  MGE owns and operates Connecticut Sun, a professional basketball team in the Women’s National Basketball Association, and the New England Black Wolves, a professional lacrosse team in the National Lacrosse League.  For more information on MGE and our properties, visit www.mohegangaming.com.

 

SOURCE Mohegan Gaming & Entertainment

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Gambling in the USA

MGM Resorts’ Responsible Gambling Program Hits Unprecedented 1 Million Customer Interactions Nationwide

George Miller

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MGM Resorts' Responsible Gambling Program Hits Unprecedented 1 Million Customer Interactions Nationwide
Photo Source: barrons.com
Reading Time: 2 minutes

 

GameSense milestone coincides with Responsible Gaming Education Week

MGM Resorts International announced that GameSense, an innovative responsible gaming initiative that was adopted by MGM Resorts in 2017, recently surpassed 1 million customer interactions at its U.S properties. The program focuses on having positive, transparent and proactive conversations about how to gamble responsibly. The adoption of GameSense marked an unprecedented commitment to integrating responsible gambling education into the MGM Resorts guest service model and the achievement of this milestone further supports MGM Resorts’ responsible gaming culture.

GameSense is an industry leading program, developed and licensed to MGM Resorts by the British Columbia Lottery Corporation (BCLC). The program comes alive through personal interactions between guests and trained staff based at each property’s M life Rewards desk. In addition to speaking to trained employees – known as GameSense Advisors – guests also utilize interactive GameSense touchscreens and can pick up educational materials and other resources. GameSense is designed to help guests make informed decisions and to help keep gambling fun. The program has earned recognition from the National Council on Problem Gambling.

“We’re thrilled to have reached this milestone,” said Rich Taylor, Executive Director of Responsible Gaming at MGM Resorts. “Our conversations with guests are not only about encouraging responsible play, but improving guest relationships and providing world-class service. I’m so proud of our teams, especially the GameSense Advisors, who deliver GameSense to our guests every day.”

MGM Resorts Recognizing Responsible Gambling Education Week Sept. 16-20

GameSense is reaching landmark milestones as MGM Resorts prepares to recognize Responsible Gaming Education Week. From Sept. 16-20, Responsible Gaming Education Week brings together industry, advocacy regulator and other key stakeholders to promote transparency and gaming literacy while showcasing an everyday commitment to responsible gaming.

During Responsible Gambling Education Week, the company is partnering with American Gaming Association (AGA) to help spread awareness and educate guests on how to make informed and responsible decisions while playing. MGM Resorts and the AGA both prioritize responsible gaming as an integral part of the industry’s daily operations. Responsible Gaming Education Week efforts are taking place as MGM Resorts’ newly opened and recently remodeled sports books prepare for an influx of guests for football season.

 

ABOUT MGM RESORTS INTERNATIONAL:
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 30 unique hotel and destination gaming offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company recently acquired the operations of Empire City Casino in New York and Hard Rock Rocksino in Ohio, which was rebranded as MGM Northfield Park. In 2018, MGM Resorts opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The 82,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine’s World’s Most Admired Companies®. For more information visit us at www.mgmresorts.com.

 

Source: MGM Resorts International

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Gambling in the USA

Rush Street Interactive Is First To Launch AGS’ Real-Money And Social Game Content In United States, Colombia

George Miller

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Rush Street Interactive Is First To Launch AGS' Real-Money And Social Game Content In United States, Colombia
Reading Time: 2 minutes

 

Deal marks AGS’ first real-money gaming agreement in North America

Rush Street Interactive announced an agreement for RSI to premier AGS’ online real-money game content at PlaySugarHouse.com’s online sportsbook and casino in New Jersey. The partnership deal also includes Rush Street Interactive’s regulated online casino in Colombia, RushBet.co, which will add the AGS content later this year, as well as Rush Street’s Casino4Fun social casino sites.

AGS Executive Vice President Matt Reback said, “We are impressed by the quality of the Rush Street Interactive platform and excited to provide online versions of our proven, popular land-based games for their real-money operations in New JerseyPennsylvania, and Colombia, and social casino markets.”

Under this partnership, Rush Street Interactive is the first online operator to launch AGS content in both New Jersey and Colombia.  Rush Street Interactive’s online casinos launched with player-favorite AGS titles Golden Wins™ and Jade Wins™, with additional AGS games slated to launch throughout 2019, including proven retail performers Rakin’ Bacon!™ and Olympus Strikes™.

Rush Street Interactive President Richard Schwartz said, “We are excited to be the first operator in the Americas to add AGS game content to our engaging library of game titles available on our social and real-money online casinos. AGS’ games deliver the identical look, game features, and play mechanics as their popular land-based counterparts, which are entertaining players and delivering strong returns across North America.”

 

About AGS:
AGS is a global company focused on creating a diverse mix of entertaining gaming experiences for every kind of player. Our roots are firmly planted in the Class II Native American gaming market, but our customer-centric culture and growth have helped us branch out to become a leading all-inclusive commercial gaming supplier. Powered by high-performing Class II and Class III slot products, an expansive table products portfolio, real-money gaming platforms and content, highly rated social casino solutions for operators and players, and best-in-class service, we offer an unmatched value proposition for our casino partners. Learn more at playags.com.

AGS Interactive (“AGSi”), a division of AGS, offers more than 600 online games to many of the world’s largest and most prominent online real-money gaming operators through its AxSys Games Marketplace™ Remote Gaming Server. For land-based operators, AGS’ turnkey, free-to-play social casino-branded mobile casino app solution ConnexSys™ and large library of proven land-based games, delivers powerful marketing, monetization, and 360-degree connection to the player. Visit playags.com/interactive/ to learn more.

About Rush Street Interactive:
Founded in 2012, Chicago-based Rush Street Interactive (RSI) launched its first betting site, PlaySugarHouse.com, in New Jersey in September 2016.  The company subsequently made history by becoming the first operator in the United States to offer a fully integrated online sportsbook and casino.  In addition to being the first to launch a legal sportsbook in the state of New York (at Rivers Casino in Schenectady) and a legal online sportsbook in the state of Pennsylvania (at PlaySugarHouse.com), RSI was also the first US-based gaming operator to launch a legal and regulated online sportsbook in Latin America (at Rusbhet.co in Colombia). Rush Street Interactive is also the developer and operator of a leading social gaming platform currently deployed at the group’s affiliated land-based casinos, as well as selected third party partners. Rush Street Interactive was named “Mobile Operator of the Year” in North America at the EGR North America Awards 2019 and “American Operator of the Year” & “Casino Operator of the Year” at the American Gambling Awards in 2019. For more information, visit rushstreetinteractive.com.

 

Source: AGS

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Gambling in the USA

New Jersey bettors flock to sportsbooks, online casinos in August

George Miller

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New Jersey bettors flock to sportsbooks, online casinos in August
Reading Time: 4 minutes

 

New Jersey’s online and retail sportsbooks posted dramatic year-over-year gains in August and the state’s total handle is once again poised to surpass Nevada. In all, New Jersey’s combined handle has more than tripled from August 2018, the month online sports betting launched, a striking gain that has the Garden State establishing itself as the largest legal sports betting jurisdiction in the country, according to PlayNJ.com analysts.

“New Jersey has successfully managed to shrug off competition and continue to grow, and at a faster rate than initially expected,” said Dustin Gouker, lead sports betting analyst for PlayNJ.com. “With new operators launching in September and the NFL season in full swing, New Jersey’s upward trajectory should continue, even as neighboring Pennsylvania expands online sports betting.”

With the kickoff of the college football season in August and NFL futures betting heating up, New Jersey’s sportsbooks accepted $293.6 million in bets for the month, according to official reporting released Thursday. That is up 17% from $251.3 million in July 2019.

August’s combined online and retail handle will likely surpass Nevada, which will posted $247.6 million in August 2018. And in a testament to the industry’s growth, New Jersey’s handle was up 207% from $95.6 million in August 2018. August’s bets yielded $25.2 million in revenue, up 174% from $9.2 million in August 2018 and up 42% from $17.8 million in July.

The success of sports betting continues to be a boon for the state. By amassing $3.8 billion in bets and nearly $250 million in revenue since launching in June 2018, online and retail sports betting has generated $28.9 million in tax revenue for the state.

“By injecting $30 million in tax revenue in just over a year, there can be little question that sports betting has been an unqualified success for New Jersey,” said Eric Ramsey, online gambling analyst for PlayNJ.com. “With a more mature industry ready as football gets into full swing, the next few months could show dramatic gains, too.”

Online sports betting continues to be the driving force, tallying $249.2 million in August bets. Online betting represented 85% of the state’s total handle, the same percentage as July.

FanDuel Sportsbook/PointsBet continues to capture the largest share of the online market, gaining $9.3 million in gross revenue, up from $7.3 million in July. Rival DraftKings — which represents the vast majority of Resorts’ online revenue — fueled Resorts to a $6.7 million month, up from $3.7 million in July. The online market leaders were followed by:

  • Monmouth/William Hill/Sugarhouse ($1.4 million, up from $1.7 million in July)
  • Ocean Resort/William Hill ($915,129, up from $645,956)
  • Caesars Sportsbook/888sport ($340,832, up from $236,254)
  • playMGM/Borgata ($261,312, up from $163,086)
  • Golden Nugget/BetAmerica ($181,427, up from $127,349)
  • Hard Rock ($106,487, up from $24,669)
  • Tropicana/William Hill ($39,638, up from $14,968)

FanDuel Sportsbook at The Meadowlands also remained the retail leader, posting $2.6 million in August gross revenue, up from $1.8 million in July. FanDuel was followed in gross revenue by:

  • Monmouth Park ($697,075, up from $321,694 in July)
  • Borgata ($669,669, down from $696,392)
  • Resorts AC ($527,158, down from $544,990)
  • Ocean Resort ($353,832, up from -$59,040)
  • Tropicana Casino ($284,335, up from $111,281)
  • Bally’s AC ($278,169, up from $256,137)
  • Golden Nugget ($263,030, up from $96,373)
  • Hard Rock AC ($182,995, up from $129,322)
  • Harrah’s AC ($155,715, up from $113,530)

“The addition of new online sportsbooks, including bet365 in late August and TheScore in September, is a good indication that the market still has room to grow,” Gouker said. “That said, the beginning of the NFL season should benefit those operators who offer the most engaging and user-friendly products. It is feasible that FanDuel and DraftKings could increase market share in the coming months.”

Online casinos set new revenue record

New Jersey’s online casino and poker industry hit yet another monthly revenue record in August, and in doing so is neared the total revenue generated in all of 2018. In all, online casino games and poker generated $41.1 million in August, topping the record of $39.3 million set in July.

August’s total — which was up 66% from $24.8 million in August 2018 — gives the industry $297.9 million in revenue for the year. In just eight months, the industry has nearly eclipsed the $298.7 million the industry generated in 2018.

“Bettors’ thirst for online casino games in New Jersey seems to be unquenchable, and could feasibly generate nearly $500 million this year,” Ramsey said. “It’s conceivable the launch of online gambling in Pennsylvania could slow the momentum in New Jersey, but right now we’re seeing no signs of the growth letting up.”

Some other important online casino and poker data from the August report:

  • Online casinos generated $6.2 million in tax revenue and has now injected $230 million into government coffers since launch in November 2013.
  • The Golden Nugget continues to dominate the market, generating $15 million in August, up from $14.9 million in July. Resorts Digital remained second with $7.5 million, up from $6.9 million in July.
  • The industry generated $1.3 million per day during the 31 days of August, up from $800,147 per day in August 2018.
  • Online casino games generated $39.4 million in August, up from $36.3 million in July. Online poker hit $1.7 million, down from $1.9 million in July.

For more information and analysis on regulated sports betting and online gaming in New Jersey, visit PlayNJ.com.

 

About the PlayUSA.com Network:
The PlayUSA.com Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over a dozen states, PlayUSA.com and its state-focused branches (including PlayNJ.com and PlayPennsylvania.com) produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online gaming options for consumers. Based in Las Vegas, the PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.

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