Raised gambling competition is requiring the biggest casino in the Western Hemisphere to alter its company to feature more non-gambling business such as retail and conferences, said the chief executive of Foxwoods Resort Casino Thursday.
Scott Butera, CEO of the Indian-operated casino, pointed out in an interview with The Associated Press that Foxwoods expected the success of New York’s Aqueduct Racetrack “racino.”
“We planned for the effects of Aqueduct,” Butera said.
A record $ 1.13 billion was gambled in July at the Resorts World Casino in New York’s Queens community. The sums wagered and net income of $ 59.8 million for July were at an unsurpassed monthly high after its opening in October.
Butera said Foxwoods, belonging to the Mashantucket Pequot Tribal Nation in eastern Connecticut, has kicked off a strategy to redevelop its meal and refreshment business and is examining strengthening group sales and commercial events at its MGM Grand hotel.
“We are absolutely planning to improve additional companies that have been less prominent in the past,” he stated.
The effectiveness of Aqueduct is increasing worries in the field of casino crowding in the Northeast. Massachusetts approved casino gambling last year, though the initial casinos won’t open in the Bay State for years.
“It will mean our business will change.” Butera stated.
Profits will likely move from a solid focus on table games and slots to a mix of business linked to Foxwoods’ resort, meals and beverage and entertainment businesses, he pointed out.
Butera, a former leader of Las Vegas-based Tropicana Entertainment Inc., said he does not view Foxwoods’ business split 50-50 between gambling and non-gambling enterprises like casinos in Las Vegas. But it’s “approaching that,” he said.
“Any good business is constantly adjusting to their environment,” he pointed out. “We’re focusing on making sure we’re very much a premium destination with multiple attractions, multiple offerings so visitors have other reasons to come besides gaming.”
However gambling will definitely continue to be Foxwoods’ elite enterprise.
“It will still be gaming,” Butera said.
Mohegan Sun, which is a neighbor of Foxwoods, is aiming to increase revenue in an endeavor seeking management contracts and consulting contracts for casino and entertainment businesses. It revealed on Tuesday a deal with Casinos Resorts, taking over the operations of the Atlantic City, N.J., casino.
Foxwoods declared last Thursday it has actually reorganized over $ 2.2 billion of arrearage, resolving a long economic stalemate.
“It’s a great first step and I feel we’re on our way,” Butera stated. “It was a very concerted effort over a long period of time.”
He stated Foxwoods will not reveal when the special deal will close.
The parent company of the Mohegan Sun casinos announced in March it has remortgaged debt of around to $ 1 billion.
Numerous Indian-operated casinos have strained to refinance debt after being caught short when the economy entered recession in December 2007. Investors have been fearful about the financial debt due to the fact that the casinos can not file for bankruptcy and creditors can not foreclose on their properties because tribal governments are paramount.Share on: