Mohegan Sun Layoffs

Blaming a $39 million decrease in slot revenue in the last year, Mohegan Sun in Ct. laid off 355 workers yesterday.

This represents 4% of its 9000 person workforce. These are the first layoffs in the casino's history and include 47 managers, 17 directors, and around 275 food and beverage workers. This has resulted in some restaurant closings including the Sunburst Buffet.

Something tells me this is only the beginning. A sad day indeed for southeastern Ct.

Something tells me Mohegan Sun will make it just fine in the end.

There is some irony in a lack of slot revenue causing layoffs, in that they are supposed to be something that requires little in the way of human interaction.

Quote: benbakdoff

Blaming a $39 million decrease in slot revenue in the last year, Mohegan Sun in Ct. laid off 355 workers yesterday.

This represents 4% of its 9000 person workforce. These are the first layoffs in the casino's history and include 47 managers, 17 directors, and around 275 food and beverage workers. This has resulted in some restaurant closings including the Sunburst Buffet.

Something tells me this is only the beginning. A sad day indeed for southeastern Ct.

It's a GOOD day for SE Conn. If Mohegan collapses, then all the money being sucked out of the surrounding areas' economy will instead remain in those communities.

I do view the demise of both Mohegan and Foxwoods as inevitable, as together they formed a virtual monopoly, with all the price gouging that monopolies create--and people will no longer want to be treated that way, not in the middle of the Second Great Depression. I've been to both places, exactly once each, and was appalled at how they overcharged for EVERYTHING. Feh.

I guess you don't mind 9,000 plus the foxwoods crew to join the bread line. What a guy! I thought it was the state of Ct that forced the monopoly. And I guess no more slot percentage to the state. My taxes going up again. Thank you very much. Everything is priced reasonably as far as casinos go with the exception of the retail stores which I agree with you. Any regular player gets all the perks which brings down the overall costs. As a relative newbie to the site please enlighten me to your casino of choice.

Both casinos pay 25% of their slot profits to the state each month in exchange for them to be the only two casinos in Ct. If another casino is allowed anywhere in the state the deal is off. That's how these two casinos got the monopoly.

Quote: mkl654321

It's a GOOD day for SE Conn. If Mohegan collapses, then all the money being sucked out of the surrounding areas' economy will instead remain in those communities.

Let me begin by prefacing that my economics is very rusty. However, I find this topic interesting, so will chime in, at the risk of being wrong.

For the sake of argument, say the Mohegan Sun (MS) closes down, and there is no crossover business to Foxwoods. Then I would agree that there would be more money held by the players that would otherwise patronize the MS. However, if those former players just sit on the money, then isn't it a detriment to the economy? Doesn't the money only do any good if it is out there circulating? In other words, a function of the strength of the economy is the velocity at which money is moving within it. I think some of that gambling money would stay in the piggy banks of the players, which would result in higher unemployment and a waste of the economic potential of those workers.

Economists would say that gambling money is discretionary, and that other discretionary outlets would benefit if it was not going to a casino... More eating out, movies, sports events tickets, etc... What percentage of this now new found discretionary money would go to savings is unclear, but knowing human nature it is unlikely to be a very high percentage.

Let's not forget about the large number of players that come from outside the area, and even outside the state, to play at those two casinos.

Quote: DJTeddyBear

Let's not forget about the large number of players that come from outside the area, and even outside the state, to play at those two casinos.

That is a strong reason that those two establishments lead the state's employers and are certainly the dominant economic force in the region, especially after the changes at the sub base:

State Profile: Largest Employers

Connecticut

These are the 50 largest employers in Connecticut. Select an employer name to learn more.

Displaying Records 1 - 25 of 50 Next
# Employer City Number of Employees
1 FOXWOODS RESORT CASINO Ledyard 11,000
2 SIKORSKY AIRCRAFT CORP Stratford 11,000
3 YEOM INTERNAL MEDICINE New Haven 10,000
4 YALE UNIVERSITY New Haven 9,000
5 PRATT & WHITNEY East Hartford 8,000

No reason given for omitting MoSun.

I've been working out here in Hartford for the past few months. The city's economy was decimated by the recession. Mohegan Sun and Foxwood are bringing in revenue from the Boston and New York metro areas. Some of the revenue too from locals living in New Haven and Hartford. If they didn't exist, New Yorkers would flock to Philadelphia and Atlantic City. Bostoners and those in Connecticut would not be gambling and would be spending their entertainment dollars elsewhere.

Both MS and Foxwoods expanded in the middle of the recession so a small reduction in the workforce is not unexpected.