\nBOSTON (AP) \u2013 Mohegan Sun faces financial peril after losing out to Wynn Resorts in its bid to open a casino in the Boston-area, a Moody\u2019s Investor Service analysis warns.<\/p>\n
\tIn a note to investors Wednesday, analyst Keith Foley said the loss \u201cheightens our concerns\u201d about the Mohegan Tribal Gaming Authority\u2019s ability to refinance its debt at an interest rate and terms equal to or better than what it\u2019s now paying. He said the Connecticut-based casino company is highly leveraged and could face significant debt repayment just as Wynn\u2019s Massachusetts casino opens sometime in 2017.<\/p>\n
\tFoley said Mohegan Sun\u2019s long-term financial prospects \u201cwould have improved materially\u201d had its proposed $1.1 billion casino at the Suffolk Downs horse racing track, which straddles East Boston and Revere, been chosen for the lone Boston-area casino license. Massachusetts gambling regulators instead went with Wynn\u2019s $1.6 billion plan to redevelop the industrial waterfront in Everett.<\/p>\n
\t\u201cAt a minimum, we believe this would provide a substantial hedge against potential losses at its Connecticut casino,\u201d which generates the bulk of the company\u2019s revenue but is suffering as competition expands in the region, he wrote. Foley said there\u2019s now greater pressure on Mohegan Sun to succeed in other efforts to diversify its revenue base, such as pursuing a casino license in Philadelphia.<\/p>\n
\tElsewhere, Foley said he expects the gambling market in Boston to perform significantly better than most other U.S. markets, which would benefit Wynn.<\/p>\n
\tHe said Boston residents have a \u201chigh propensity\u201d to gamble, citing the number of Massachusetts residents who visit Connecticut\u2019s Indian casinos. Boston also has the business, entertainment and transportation infrastructure to draw travelers from outside the region and internationally, Foley said.<\/p>\n
\tIn a related development, the Massachusetts Gaming Commission, which awarded Wynn a casino license earlier this week, says it will look for ways to keep thoroughbred horse racing in the state now that Suffolk Downs is expected to close, following Mohegan Sun\u2019s loss.<\/p>\n
\tThe commission, which will take up the issue on Sept. 25, said it will consider every option to preserve the industry. It also plans to help Suffolk Downs workers find other employment and workforce training.<\/p>\n
\tSuffolk Downs\u2019 Chief Operating Officer Chip Tuttle, in a statement, dismissed the promises as \u201cempty posturing.\u201d New England\u2019s lone thoroughbred horse racing track has said the live racing season that ends Sept. 29 will be its last. It will offer simulcast betting until at least November.<\/p>\n
\t\u201cThis is one of those cases where the Gaming Commission\u2019s actions speak louder than their words,\u201d Tuttle said. \u201cThe Commission\u2019s actions Tuesday made clear how little value they place on these jobs and these people.\u201d<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
BOSTON (AP) \u2013 Mohegan Sun faces financial peril after losing out to Wynn Resorts in its bid to open a casino in the Boston-area, a Moody\u2019s Investor Service analysis warns. In a note to investors Wednesday, analyst Keith Foley said…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-8040","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=8040"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8040\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=8040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=8040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=8040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}