by Ray Poirier | Nevada, which counts so heavily on gaming revenues to meet its budgetary needs, isn’t the only state feeling the pinch in the current economic slowdown. In fact, nearly all states that benefit from the expansion of gaming, are seeing shortfalls.
One of the unlikeliest, however, is Connecticut, home of two of the world’s most successful casinos, Foxwoods Resort, owned by the Mashantucket Pequot Indians, and Mohegan Sun, the property of the Mohegan Tribal Nation.
Since Atty. Mickey Brown, the former New Jersey gaming regulator who later became a major factor in the success of Foxwoods, worked a deal with the state, whereby Connecticut would receive 25% of all slots revenue provided it received exclusivity, the Nutmeg State has reaped a harvest.
The addition of Mohegan Sun to the deal, achieved with the approval of the Pequots, only added to the flow of cash into the state’s coffers.
But times are catching up to the two properties, thus reducing the amount they generate in tax dollars.
For the month of June, Foxwoods saw its net slots win drop 8.5% to $63.6 million while Mohegan Sun’s slots revenues slid 9% to $67.8 million.
Those reductions left Connecticut with $15.9 million from Foxwoods, down $1.5 million from June, 2007, and $16.9 million from Mohegan Sun, down $1.7 million from a year ago.
Officials believe a drop in gasoline prices and an improved economy would go a long way toward restoring previous revenue levels.