Casino operator Mohegan recently announced in its annual report that it lost $234.5 million in the 2024 fiscal year, following the March debut of its new Asian resort, dubbed the “Las Vegas of South Korea.”
The Uncasville-based gaming giant and resort developer, controlled by the Mohegan Tribe, said it lost $63.3 million in the fourth quarter, more than three times as much as the $18.9 million it lost in the fourth quarter of 2023. The company had net income of $22.9 million in fiscal 2023.
The loss came despite Mohegan generating its highest-ever net revenue of $1.9 billion, up 13% year over year.
Mohegan said the loss was due primarily to costs related to the opening of its new $1.6 billion Inspire Entertainment Resort in South Korea, and low table hold at the South Korean casino.
Mohegan also said it is at risk of defaulting on several loans, which “taken together present significant risks to investors.”
According to the report, Mohegan needs to refinance multiple credit facilities that will mature in 2025, as it will not have enough liquidity to meet the debt obligations when they are due.
Mohegan said it can “provide no assurance” that it will be able to refinance the loans, which could lead to one or more defaults, creating “substantial doubt” about its ability to continue as a going concern.
However, Mohegan reported a $216.7 million increase in net revenue compared to fiscal 2023, largely due to “continued growth in Mohegan Digital, and strong non-gaming revenues at our other resorts,” said Mohegan’s Chief Financial Officer Ari Glazer.
Mohegan Digital, which includes igaming and sports betting in Connecticut, Pennsylvania and Ontario, generated $160.7 million in fiscal 2024, up nearly 60% from last year. Its operating costs and expenses increased $29.8 million, or 57.1%.
Net revenue for Mohegan’s domestic venues, including its flagship Mohegan Sun Casino in Uncasville, increased by $34.6 million, or 2.6%, in fiscal 2024, according to the report. More than 43% of the increase stemmed from entertainment revenue, due to a “favorable show mix at Mohegan Sun Connecticut” and strong food and beverage sales.
Mohegan Sun Arena has 10,000 seats and is home to the Connecticut Sun WNBA franchise.
Mohegan owns, develops and manages entertainment resorts in Connecticut, Pennsylvania, New Jersey and Nevada, with Canadian operations based in Niagara Falls, Ontario.
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