Earlier this month, the Mohegan Tribal Gaming Authority, the premier integrated entertainment resort developer, released its fourth quarter results. The company’s Q4 figures highlighted growth and diversification with an overall net revenue increase of 7.6% year-over-year to $444.3 million. Despite the positive result, Mohegan’s Las Vegas operations showed a decrease in adjusted EBITDA and revenue.
Currently, Mohegan Las Vegas operates inside Virgin Hotels Las Vegas, offering casino gambling as well as a sportsbook that is operated by Betfred Sports. The off-Strip casino location made Mohegan the first tribal gaming operator to enter Sin City after it struck a partnership with JC Hospitality for the former Hard Rock Las Vegas, now Virgin Hotels.
Overall, Mohegan Las Vegas posted revenue of $3.8 million in Q4 or the three months ended September 30, 2023. This result marked a year-over-year decrease of nearly 42%. Similarly, adjusted EBITDA plummeted to a loss of $3.1 million, negative 434.2% when compared to the corresponding period for the prior year.
Upon releasing those results, Mohegan explained that adjusted EBITDA was a loss “primarily due to decreased gaming revenues at Mohegan Casino Las Vegas, resulting from unfavorable table hold.” The company hinted that if table hold was normalized, adjusted EBITDA for its Las Vegas operations would have been $1.8 million for Q4 this year.
The Company Plans to Retain Presence in Las Vegas
Despite the unsatisfactory results for Mohegan Las Vegas in Q4, a new report confirms that the company doesn’t plan to divest its Sin City assets. When announcing its fourth quarter results, during a conference call last week, an analyst questioned the potential of Mohegan’s operations in Las Vegas.
As announced by the Nevada Independent, Jody Madigan, Mohegan’s chief operating officer, responded that the company doesn’t plan to forego its agreement with JC Hospitality, the owner of Virgin Hotels where Mohegan’s Las Vegas casino operates. “We still believe in the property and we want to be in Las Vegas,” he explained. Additionally, Madigan pointed out: “We’re doing everything we can to make sure the property is as successful as we think it can be.”
The chief operating officer explained that the company’s Las Vegas operations represent a challenge. However, he said Mohegan continues to collaborate with JC Hospitality in an effort to make its Sin City property “a primary asset within the Mohegan portfolio.”
Recently, one of the most anticipated events for Las Vegas wrapped up, the Las Vegas Grand Prix. The Formula 1 event attracted visitors from across the globe and will undoubtedly impact the results of gaming operators, Mohegan included. Yet, the $3.8 million revenue posted by the company’s Las Vegas operations in Q4 represents a tiny portion compared to its total revenue that surpassed $440 million.
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