The tribe that owns the Mohegan Sun casino in eastern Connecticut could extend its reach in the east of the US by taking over the operation of Atlantic City's oldest casino.
If regulators approve the plan, it would expand the reach of one of the nation's main tribal casinos. By taking over management of Resorts Casino Hotel, Mohegan would become the first American Indian-run firm to expand into the established gambling destinations of Atlantic City and Las Vegas.
"It's a total reversal in the way the capital and management is going," said David Schwartz, director of the Center for Gaming Research at the University of Nevada in Las Vegas. “Before, it was Indian casinos trying to attract investment and management from Las Vegas and Atlantic City.”
It also means Mohegan, which has its flagship casino in Connecticut and Pennsylvania's Mohegan Sun at Pocono Downs, would have properties a few hours' drive from New York City in three different directions, establishing it as an even bigger brand in the north-east.
"The timing is right," Mohegan Tribal Gaming Authority CEO Mitchell Etess said. "We have long looked at the Atlantic City market as an excellent opportunity." He said a bold city-wide marketing campaign and the May opening of the new Revel casino show the city is heading in the right direction, even as gambling revenues shrink.
Under the deal, Mohegan would invest an undisclosed sum in Resorts, which in 1978 became the first place to gamble legally in the US outside of Las Vegas. The company would also manage the casino, which has had a rough time even by the standards of Atlantic City over the past six years.
Etess said the company, which is also seeking a casino licence in Massachusetts, would have shared marketing programmes for its three casinos, though Resorts would not get a name change. In a gambling world where customer loyalty is rewarded, Etess said a Mohegan connection would mean that the people who visit its other properties would likely stay and play at Resorts when they visit Atlantic City.
Resorts was sold in 2010 to Dennis Gomes and Morris Bailey for $31.5m. Gomes, seen as a visionary in the industry, rebranded the casino in a roaring 20s theme to capitalise on the HBO series Boardwalk Empire about Atlantic City in the Prohibition era. But Gomes died in February and his son, Aaron, has been helping to run the casino.
Etess said at a news conference with Aaron Gomes sitting nearby that he hoped that Gomes and other current executives and lower-level employees would remain. Bailey said that he and Dennis Gomes began searching for a management partner soon after they bought Resorts.
Last month, Resorts announced another new venture, teaming with Jimmy Buffett to develop a Margaritaville-branded entertainment complex in part of the casino. The Mohegan Sun's Connecticut casino, which opened in 1996, already has a Buffett-themed restaurant.
