Mohegan Sun Layoffs
September 15th, 2010 at 1:54:07 PM
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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.
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.
September 15th, 2010 at 2:14:59 PM
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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.
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.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell! She is, after all, stone deaf. ... Arnold Snyder
September 15th, 2010 at 3:18:34 PM
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Quote: benbakdoffBlaming 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.
The fact that a believer is happier than a skeptic is no more to the point than the fact that a drunken man is happier than a sober one. The happiness of credulity is a cheap and dangerous quality.---George Bernard Shaw
September 15th, 2010 at 4:00:55 PM
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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.
IF YOU PLAY "PLAY TO WIN"
September 15th, 2010 at 4:18:31 PM
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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.
September 15th, 2010 at 4:21:46 PM
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Quote: mkl654321It'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.
"For with much wisdom comes much sorrow." -- Ecclesiastes 1:18 (NIV)
September 15th, 2010 at 4:32:57 PM
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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.
September 15th, 2010 at 4:34:50 PM
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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.
I invented a few casino games. Info:
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Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
September 15th, 2010 at 4:58:43 PM
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Quote: DJTeddyBearLet'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.
September 16th, 2010 at 8:02:10 PM
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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.
Both MS and Foxwoods expanded in the middle of the recession so a small reduction in the workforce is not unexpected.
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You want the truth! You can't handle the truth!
September 16th, 2010 at 8:49:48 PM
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Quote: WizardLet 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.
Pretty much by definition, money spent gambling is discretionary expenditure. It also falls under the subcategory of discretionary income spent on entertainment. So the money not spent wouldn't go into piggy banks (though that wouldn't be the worst outcome in the world), but rather, to other forms of entertainment--movie theaters, restaurants, etc. in the surrounding metro areas. I would expect that this would be healthy for the economies of the surrounding communities--a net gain. I don't know how much of the present profit of Foxwoods/Mohegan stays in the state of Connecticut, but I would bet that most of that profit winds up elsewhere. Of course, the state would lose some tax revenue if the casinos went away.
I think what you're referring to is the "economic multiplier effect". It is of modest force in the case of an isolated casino that makes no investment in material productivity, and employs mainly unskilled workers. In any case, that effect would be much more pronounced if the money referred to was more dispersed, i.e., people spent the money formerly lost to the casinos in hundreds of other places instead.
Another consideration would be the drastic and massive social impact of casinos, which would disappear if the casinos disappeared. I have no idea of the impact of the casinos on Connecticut's social services burdens, but I'll bet it's considerable.
The fact that a believer is happier than a skeptic is no more to the point than the fact that a drunken man is happier than a sober one. The happiness of credulity is a cheap and dangerous quality.---George Bernard Shaw
September 17th, 2010 at 5:13:11 AM
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Quote: mkl654321The money not spent wouldn't go into piggy banks (though that wouldn't be the worst outcome in the world), but rather, to other forms of entertainment--movie theaters, restaurants, etc. in the surrounding metro areas. I would expect that this would be healthy for the economies of the surrounding communities--a net gain.
The fault in that line is that travelers from more than, say, 25 miles away would not be going to what the state calls the Mystic region, meaning that the money those folks spend in the region would not be spent there.
Quote:I don't know how much of the present profit of Foxwoods/Mohegan stays in the state of Connecticut, but I would bet that most of that profit winds up elsewhere.
One can theorize or guess or "bet" all one wants, but when an enterprise is the largest private in the whole state it is most definitely making an important contribution to the economy. Take for instance any number of well-known Connecticut companies like United Technologies or Stanley Works. Much of their basic production is in other states or overseas. Yet they are major components of Nutmeg Pride.
Quote:If the money referred to was more dispersed, i.e., people spent the money formerly lost to the casinos in hundreds of other places instead.
Problem is that without the drawing power of those casinos, people would not travel there to spend their money. And there is no way in the world that the surrounding region could maintain economic activity anywhere close to where it is now.
Quote:Another consideration would be the drastic and massive social impact of casinos, which would disappear if the casinos disappeared. I have no idea of the impact of the casinos on Connecticut's social services burdens, but I'll bet it's considerable.
For someone who likes to bet with an advantage, that information would be easy enough to find out, especially from places like Gamblers Anonymous.
September 17th, 2010 at 6:30:17 AM
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I think firing the managers and directors is probably a good idea.
Food service workers? Closing of restaurants? Not a good idea but if people think that their monopoly status has been causing price gauging ... maybe that makes it good that the casino is taking some punishment. Its often the view of customers there that Foxwoods treats people fairly poorly and has a 'if you don't like it here, trek to Las Vegas' attitude.
Sad day? Reality Day. Sad or not.
They will probably survive on their lower take but will soon have to realize that no one has a monopoly anymore in the sense that travel is simply too easy for any one casino to rest on its laurels. If gambling money is considered discretionary then I think an economist would have to admit that the locus of its expenditure is also quite discretionary. Oh there may be matters of convenience and preference, but most gamblers who "vote with their feet" are really going to be voting with more upscale transportation than that. Some who made a point of driving even a greater distance to get to the more enjoyable casino may now decide to trek even further afield. Monopoly? Heck, some economists would say its the players who have the monopoly. They control which casino, how much and when! If things have gotten out of line, the economy provides some corrections and so do the players! Eventually the casino will learn that they should re-hire the food service workers and fire far more directors and managers! Closed restaurants do not attract gamblers. Nor do high prices overly hiked by monopoly powers.
Food service workers? Closing of restaurants? Not a good idea but if people think that their monopoly status has been causing price gauging ... maybe that makes it good that the casino is taking some punishment. Its often the view of customers there that Foxwoods treats people fairly poorly and has a 'if you don't like it here, trek to Las Vegas' attitude.
Sad day? Reality Day. Sad or not.
They will probably survive on their lower take but will soon have to realize that no one has a monopoly anymore in the sense that travel is simply too easy for any one casino to rest on its laurels. If gambling money is considered discretionary then I think an economist would have to admit that the locus of its expenditure is also quite discretionary. Oh there may be matters of convenience and preference, but most gamblers who "vote with their feet" are really going to be voting with more upscale transportation than that. Some who made a point of driving even a greater distance to get to the more enjoyable casino may now decide to trek even further afield. Monopoly? Heck, some economists would say its the players who have the monopoly. They control which casino, how much and when! If things have gotten out of line, the economy provides some corrections and so do the players! Eventually the casino will learn that they should re-hire the food service workers and fire far more directors and managers! Closed restaurants do not attract gamblers. Nor do high prices overly hiked by monopoly powers.
September 17th, 2010 at 7:45:27 AM
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FWIW This week I went to Mohegan Sun-Pocono Downs; the environment at the Racebook/Simulcast was flat out seedy. The language was over the top bad...F-bombs were loud and omnipresent (in front of women, children, etc.) So I went the next day to express displeasure.
The response that I received was as follows:
1. I wasn't the only one to complain...in fact, it is a common complaint,
2. These complaints have been passed on to management,
3. The reason why the situation exists is that there is no security personnel (a correct observation),
4. It is doubtful anything will be done.
My question is, does anyone think there is any connection between the observations listed in this thread and what I observed/heard at MS-PD?
The response that I received was as follows:
1. I wasn't the only one to complain...in fact, it is a common complaint,
2. These complaints have been passed on to management,
3. The reason why the situation exists is that there is no security personnel (a correct observation),
4. It is doubtful anything will be done.
My question is, does anyone think there is any connection between the observations listed in this thread and what I observed/heard at MS-PD?
Nemo Omnibus Horis Sapit
September 17th, 2010 at 8:55:02 AM
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Quote: NiblickFWIW This week I went to Mohegan Sun-Pocono Downs; the environment at the Racebook/Simulcast was flat out seedy. The language was over the top bad...F-bombs were loud and omnipresent (in front of women, children, etc.)
Your observation was troublesome but I'm just curious what were children doing at the race book?
As far as the connection, I see none.IF YOU PLAY "PLAY TO WIN"
September 17th, 2010 at 10:28:43 AM
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I asked about that and was told that, provided that the children are with parents, they were allowed. Thing is, since there was no security personnel, the children's access was basically unabated.
The complicating factor is that there is direct access from the racetrack apron. Still, there is access to the apron from the parking area that bypasses the Racebook/Simulcast area (w/lavatory facilities) so it would be possible to preclude access by the underaged to the Racebook yet allow access to the live harness racing track.
The complicating factor is that there is direct access from the racetrack apron. Still, there is access to the apron from the parking area that bypasses the Racebook/Simulcast area (w/lavatory facilities) so it would be possible to preclude access by the underaged to the Racebook yet allow access to the live harness racing track.
Nemo Omnibus Horis Sapit
March 23rd, 2011 at 3:16:18 PM
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Quote: benbakdoff
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.
This does not signal any sort of demise. Looks smart from a business perspective. Foodservice workers produce less revenue than say, dealers. Managers and directors have higher salaries - and I speculate that many who have been with the casino since opening have been riding a wave of good times. Fire them and promote their underlings at lower salaries. Makes sense.
March 23rd, 2011 at 4:27:30 PM
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They're holding their own. Slot profits for February were $58 million.
