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Foxwoods Resort Casino and Mohegan Sun Now Employ More than 10,000 People, Keep Creating Attractions
By Karen Florin, The Day, New London, Conn.
Knight Ridder/Tribune Business News 

Jan. 28--The newest power industry in Southeastern Connecticut -- Indian gaming -- is expected to prosper for the foreseeable future, despite a weaker economy, the likelihood of war and the potential for new competition. 

Foxwoods Resort Casino and Mohegan Sun, which opened in 1992 and 1996, respectively, each generate about $1 billion annually and employ more than 10,000 people. 

The tribes that own the casinos find themselves in different positions at the beginning of 2003. 

The Mohegans have just completed their $1.1 billion Project Sunburst expansion and plan on spending the year paying off some debt while not undergoing any major changes. 

The only new openings expected in 2003 are two outlets by Boston businessman Patrick Lyons: a dueling piano bar similar to Jake Ivory's in Boston and a high-end night club. Both phases of the so-called "Mohegan After Dark" project are targeted for completion in May. 

"I think the key is, once the nightclub is completed, we'll really have our complete product," said Mitchell Etess, executive vice president of marketing for Mohegan Sun. "Then it's a matter of continuing to refine our programs and our training and continuing working with our great employees to make things better." 

The Mashantucket Pequots, who have slowed their growth over the past several years and paid off some $250 million in debt, are considering how to expand their resort and could make an announcement on development plans within the year. The timing is right and Foxwoods has the capacity for growth, according to Chief Executive Officer and President William Sherlock. 

"As long as it has the right return on investment... I think you'll see the action," Sherlock said. "We've analyzed it for a number of years and we'd like to see it move." 

Sherlock was not specific about the potential development plans being mulled by the Mashantuckets. 

Connecticut's casino operators are not under the same pressure as Las Vegas owners to constantly reinvent their facilities, but they do have to keep them fresh. Foxwoods opened its B.B. King dance and nightclubs last year and completed some renovations. Sherlock said Foxwoods would also look at its existing retail and restaurant mixes, and concentrate on customer service. 

A newer product draws in the experimental player, whom the casinos hope to turn into a loyal customer. 

The Mashantuckets will open two 18-hole championship golf courses in 2004, making Foxwoods the only casino in the area with such amenities. 

The economic downtown and threat of war should not substantially harm the two businesses, according to Jacques Cornet, a gaming analyst for CIBC World Markets. 

"With their financing and capitalization, they are both in pristine shape with respect to surviving the downturn," Cornet said. 

He estimated that cash flow or operating earnings at Mohegan Sun would have to be off by about 50 percent for the casino to be unable to cover its operating costs. 

The threat of war is not as damaging for regional casinos, where many of the customers drive in for the day, as it is for markets like Las Vegas, where most visitors arrive by plane, Cornet said. 

In terms of future competition, he said he doesn't think a casino will open soon in Connecticut, Rhode Island or Massachusetts. 

-----To see more of The Day, or to subscribe to the newspaper, go to http://www.theday.com 

(c) 2003, The Day, New London, Conn. Distributed by Knight Ridder/Tribune Business News. 


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