First Revel and now with the announcement that Connecticut-based Mohegan Sun will take over the operation of Resorts Casino Hotel in Atlantic City, the oceanfront gaming town hasn’t seen this much action in years.
With the new management, Resorts, the oldest casino on the East Coast, looks to revive its fortunes.
Managing Editor Mike Schneider spoke with Israel Posner, Executive Director of the Levenson Institute at Stockton College, to get his reaction to the news.
Posner calls the union of Mohegan Sun, Jimmy Buffet’s Margaritaville (located at the Mohegan Sun) and Resorts a trifecta of an incredible set of brands that is a win-win for everybody..
“When you think about Margaritaville and Resorts and then you add to that one of the largest casinos east of the Mississippi, Mohegan Sun and then of course Pocono Downs up in Wilkes-Barre you’ve got a regional nexus of brands that are very powerful together. So you have a win win which is really why this make a whole lot of sense.”
According to Posner, the Connecticut-cased casino has had its eye on Atlantic City for quite some time and the move is a sign of more regionalisation of gaming companies and growth and investment in Atlantic City.
“Of course, Caesars is the largest company in the country and they have brands and properties all over the country. But in this case, Resorts and Mohegan Sun together represent a real regional powerhouse. when you think about southern Connecticut, northern New Jersey, eastern Pennsylvania and now Atlantic City all coming together in one market that represents a very powerful combination.”
When asked if the fact that Mohegan Sun is a tribal casino poses any particular challenges, Posner says tribal casinos represent a large percentage of the industry and that their business interests extend beyond the reservation.
“They’re businesses, they grow, they merge, they acquire. And this is another business opportunity. And remember, this isn’t the tribe of Mohegan Sun taking over Resorts. That’s not what’s going on. You have a management contract and some opportunity for equity.”