News Column

The Providence Journal, R.I., John Kostrzewa column

August 17, 2014

By John Kostrzewa, The Providence Journal, R.I.



Aug. 17--Foxwoods Resort Casino continues to have financial trouble.

The Mashantucket Pequot Tribe restructured Foxwoods debt in 2013 to meet its loan payments and hoped an improving economy would strengthen the finances of the casino complex in Connecticut.

But a tepid economic recovery and increasing competition from newer casinos has caused the tribe to fall out of compliance with terms of the loan agreement reached in July 2013 with Bank of America, according to a statement issued by the Pequots.

The tribe said it had entered into discussions "as a result of its failure to comply with certain financial covenants in the credit facility," according to the statement.

Foxwoods also reported slots revenue in July fell by more than $4 million, or 8.9 percent, from the comparable period a year ago.

"We believe that consumer spending patterns remain challenging in our primary markets, particularly in the mass and mid-tier market segments," Foxwoods said, in a written report. "As well, competitive pressures continue to be impactful, both from the expansion of gaming and marketing activities, in the Northeast gaming market."

The competition for gamblers will increase from the three resort casinos and slots parlor planned in Massachusetts and other resort casinos planned in upstate New York. Also, plans to add table games at the slots parlor in Newport will be considered by Rhode Island voters in November.

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(c)2014 The Providence Journal (Providence, R.I.)

Visit The Providence Journal (Providence, R.I.) at www.projo.com

Distributed by MCT Information Services


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Source: Providence Journal (RI)


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