Gaming Take Sends Casino's 3Q Core Earnings Up 5 Percent

Big-name entertainers, including Coldplay, Jimmy Buffet and Brooks & Dunn, helped draw patrons to the casino in April, May and June, said Mitchell Etess, chief executive officer of the Mohegan Tribal Gaming Authority. A new suite of high-limit table games on the 36th floor of the Mohegan Sun hotel also has begun contributing to the bottom line.

The private gaming area is something “that we never really had,” Etess said in a conference call Thursday with analysts. “Early feedback from that is extremely favorable.”

Indeed, Mohegan Sun officials said they're continuing to see strong growth in the casino's high-end offerings.

Core earnings at the Mohegan Tribal Gaming Authority, which includes Mohegan Sun and the Mohegan Sun at Pocono Downs, rose 5.7 percent to $96.5 million, from $91.2 million a year ago. At the casino itself, core earnings were up 5.3 percent to $98 million, from $93.1 million in the same quarter a year ago.

The tribe reported record gaming revenues of $321.1 million for the quarter, a 3.8 percent increase, as Mohegan Sun continued to increase its share of Connecticut's lucrative slot-machine market. The casino captured 52.3 percent of the market in the third quarter, up from 51.2 percent a year ago.

Gross slot revenues hit $227.7 million in the third quarter, an increase of 3.4 percent, the tribe said. The casino saw a big jump in revenue from table games, which climbed 7.6 percent to $89.9 million for the quarter.

Food and beverage revenues decreased 1.5 percent to $22.5 million, partially due to the closing of the Rising Moon food court in the Casino of the Sky. The food court is scheduled to reopen in August as Geno Auriemma's Fast Break, a basketball-themed marketplace with several eateries.

Hotel revenues were unchanged at $12.8 million for the quarter. Retail, entertainment and other revenues fell 5.9 percent to $27.2 million, primarily due to changes in promotions offered to Mohegan Sun Player's Card members, the tribe said.

The tribe also said it hired a new architect, Wimberly Allison Tong and Goo of Orlando, Fla., to complete its master plan for potential hotel and casino expansion at Mohegan Sun. WATG's projects have included The Palace Tower at Caesars Palace in Las Vegas, Atlantis in Paradise Island, Bahamas, and The Palace of the Lost City in Sun City, South Africa.

Meanwhile, the tribe said it's continuing to weigh its options in Pennsylvania, where it hopes to bring slot machines to its Pocono Downs property. New regulations from the Pennsylvania Department of Revenue will force the tribe to pay higher-than-anticipated taxes on its slot revenues. If the issue isn't resolved, the tribe said, it may reconsider its plans.

Dr. Bethel Says Legal Woes Of AES Have No Bearing On Bahamas Proposal

Recently, the government of the Dominican Republic filed a final, updated complaint against AES in a Virginia court, seeking "compensatory damages for physical, mental and economic injuries."

The basic allegations of the lawsuit are that between late 2003 and early 2004, AES - through its subsidiaries - conspired to dump nearby 60,000 tons of industrial waste on pristine beaches in the Dominican Republic, damaging the environment, destroying the regional tourism product, and causing bodily harm to some residents of the areas.

"I don't think [the lawsuit] would have any impact whatsoever [on our consideration]," said Dr. Marcus Bethel, minister of energy and the environment, who spoke with the Bahama Journal on Tuesday.

"First of all, the issues are related to a subcontractor for AES who had responsibility for disposing of waste from a coal operated facility. Nothing here in The Bahamas being proposed has anything to do with coal so the whole setup and situations are quite different. So the legal concerns that have been expressed in another jurisdiction have little or no application here in The Bahamas with respect to what's being proposed here."

Starwood to convert U.S. Virgin Islands resort to time shares

The Westin St. John Resort & Villas in St. John, U.S. Virgin Islands is getting a new look courtesy of Starwood Vacation Ownership.

Starwood, the Orlando-based division of Starwood Hotels & Resorts Worldwide Inc. that sells and manages time shares, says it will convert 186 existing hotel rooms in seven buildings into 94 two- and three-bedroom villas.

Construction of the first phase, which includes 54 villas, will begin in July with an expected occupancy in late 2007. The second phase, the remaining 40 villas, will begin work shortly thereafter. Sales of the new units will also begin in July.

The time share company says there is an increasing demand for luxury vacation ownership properties in the Caribbean, which is the reason for doubling the size of its vacation ownership units in St. John.

The property currently has 92 studio, one-, two- and three-bedroom villas, with the conversion bringing the total to 186 time share properties and sharing the resorts amenities.

There are eight other Westin-branded vacation ownership resorts either completed or in the development process in the Caribbean, including the recently announced Westin Aruba Resort & Spa and Harborside Resort at Atlantis, adjacent to the acclaimed Atlantis Resort on Paradise Island, The Bahamas.