Hartford Business Journal

6 Hartford Business Journal • November 16, 2020 • www.HartfordBusiness.com By Norman Bell Special to the Hartford Business Journal T o hear CEO Mario Kontomerkos tell it, Mohegan Gaming & Entertainment's secret weapon in its recent run of winning international con- tracts is its sense of time. Foreign regulators too often see U.S.-based bidders for resort licenses as focused on a transac- tional, time-is-money approach. That's a sense of time that grates on Old World sensitivities in cultures that view time in generations rather than in quarterly earnings reports. It also runs contrary to the principles of the Mohegan Tribal Council, the guid- ing force behind the privately-held MGE. Montville-based Mohegan Gaming seeks to build a long-term relationship with its communities, Kontomerkos explains, and is willing to invest in infrastructure and services that provide benefits beyond the re- sort's footprint. He points to the impact Mohegan Sun has had on the state of Connecticut, beyond the bor- ders of the Uncasville resort property. There's the $35-million investment in highway infrastructure, the $13-million investment in upgrading the regional water system and the fire/emergency medical response system that serves the larger Montville community well beyond the tribal boundaries. And MGE's pre- sentations — and history — sug- gest it will take much the same approach in other jurisdictions. Kontomerkos credits this long-view with swaying govern- ment regulators in Greece and South Korea to favor MGE. The result is deals to develop and manage resort complexes that could run to more than $10 billion. That's not to diminish Mohegan Gaming's record developing one of the world's busiest and most successful integrated resorts in the Mohegan Sun. The Mohegan Sun Arena — home to a women's profes- sional basketball team, men's lacrosse team and a non-stop calendar of high- profile concerts — has become an industry model. So has its profit- able integration of restaurants, retail and family-friend- ly entertainment. And then there's its long record of success running one of the nation's largest casinos, a record about to be burnished as MGE becomes the first tribal opera- tor of a Las Vegas gaming venue. Also, MGE has influenced resort- design trends with its emphasis on a "barbell" approach with casinos at both ends of the footprint and a hotel-lobby separate from the gaming areas. Indeed, while MGE is based in Connecticut, it's now a well-known national and global player. Here's a look at Mohegan Gaming's recent successes around the world. Greece — A long and disputed process came to an end last month when MGE edged out Hard Rock In- ternational and the Seminole Tribe of Florida for the rights to develop a massive resort on a decommis- sioned airport site near Athens. In typically contentious Greek style, it has taken 19 years to agree on a plan for redeveloping Hellenikon Interna- tional Airport. And it may take another year or more before MGE's construc- tion partner — GEK TERNA — has the permits necessary to start work on what would be a vast complex of 1,250 hotel rooms, 40 restaurants, re- tail shopping, a 15,000-seat arena, golf course, entertainment complex and, of course, casino space for 1,500 slot machines and 250 table games. Total costs could approach $9 bil- lion, although MGE's share is closer to $1 billion. MGE is calling the project "Inspire Athens." A marina, office complex and luxury homes are also planned for the expansive property, which had been Athens' international airport until it was replaced in 2001. South Korea — MGE's first international win was the 2016 deal to build an integrated resort at the Inchon International Airport, one of the busiest in the world. It took a promise of a minimum $5 billion investment to land the bid, although plans call for development in phases through 2031. Known as "Inspire," the project will include three hotel towers and twin casinos. Ground was broken in 2019 but work has slowed along with air traffic amid the pandemic. MGE officials put a happy face on the delays, telling an Asian gaming conference it was doing some rede- sign work to improve guest safety. South Korean media, however, are reporting both MGE and a nearby rival project licensed to Caesars Entertainment are having trouble raising capital to construct resorts in this mid-pandemic business climate. MGE has said its casino is on track International Influence Mohegan Gaming's Kontomerkos kicks casino operator's global ambitions into high gear Mohegan Sun feels the COVID-19 blues The Mohegan Sun reopened June 1, after shutting down abruptly in March amid the state's COVID-19 pandemic. While the casino has been able to remain open since that time, the pandemic has significantly impacted its financial performance. Here's a breakdown of the casino's fiscal third quarter, which ended June 30. In thousands June 30, 2020 June 30, 2019 Gaming $67,966 $165,968 Food and beverage $2,779 $27,941 Hotel $2,568 $20,885 Retail, entertainment and other $4,926 $36,251 Net revenues $78,239 $251,045 Source: Mohegan Gaming & Entertainment Mario Kontomerkos, CEO, Mohegan Gaming & Entertainment A rendering of the gaming and entertainment complex Mohegan Gaming & Entertainment is planning in Incheon, South Korea. The Mohegan Sun Casino at Virgin Hotels Las Vegas will debut in January. 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