Mohegan Faces Mounting Debt Crunch After $234.5M Loss in FY 2024

^{The Mohegan INSPIRE casino in Incheon, South Korea, has been able to fill up its tables but still has massive debt in play. (Image: Mohegan Tribal Gaming Authority)} 

The Mohegan Tribal Gaming Authority, the Connecticut-based casino operator owned by the Mohegan Tribe, reported a $234.5 million loss in the 2024 fiscal year, and says it is at risk of defaulting on several loans in the near future.

In an announcement last Tuesday, in which Mohegan announced its results for the fourth quarter (ending September 30) and the entirety of the fiscal year, the firm said that its long-term debt now had a face value of over $3.14 billion. 

Korean Resort Carries Heavy Debt Obligations

Much of that debt is related to the company’s Korea Term Loan, related to Mohegan Inspire Entertainment Resort, a $1.6 billion foreigner-only casino located in Incheon, South Korea. That loan has a face value of nearly $441.8 million and is due to mature in 2027.

In the announcement, Mohegan also said it would have to refinance multiple credit lines that are maturing in 2025, as is lacks the liquidity to meet those debt obligations. The company said it could “provide no assurance” that it would be able to refinance those loans, which, along with other debt issues, “taken together present significant risks to investors.”

“Management plans to refinance in order to satisfy the upcoming debt maturities and to seek additional sources of liquidity in order to repay the Korea Term Loan and/or obtain waivers or amendments under such,” Mohegan stated. “These plans have not been finalized, are subject to market conditions, and are not within the company’s control and, therefore, cannot be deemed probable.”

Online Gambling, Mohegan Sun Drive Revenue Gains

The news wasn’t all bad from Mohegan. The company said it had generated its highest annual net revenue ever, making $1.9 billion – up about 13 percent year-over-year. These good fortunes began in the first quarter of 2024 and didn't let up. 

Yet the company still reported a substantial loss, capped by a $63.3 million loss in the fourth quarter. According to Mohegan, this was largely due to the costs of opening the Inspire Entertainment Resort, as well as lower than expected table hold at the casino. 

As is being seen throughout the gaming industry, the biggest growth area for Mohegan has been its iGaming offerings. Mohegan Digital generated $160.7 million in revenue for the 2024 fiscal year, an increase of about 60 percent compared to 2023. Mohegan Digital operates online casinos and sports betting sites in Connecticut, Pennsylvania, and Ontario. 

Mohegan also operates several land-based casinos in Connecticut, New Jersey, Pennsylvania, Nevada, and Ontario. Mohegan Sun, the company’s flagship casino in Uncasville, Connecticut, saw revenues increase by $34.6 million in 2024. That boost was attributed primarily to entertainment revenues, including strong food sales, a strong mix of shows at the venue, and the Connecticut Sun WNBA team, which plays at Mohegan Sun Arena.