Gambling tax revenue plummets, along with casino profits.
Connecticut’s gambling reports for December are in and figures are showing a sharp decrease in slot machine revenues for both Indian-run casinos.
While Foxwoods Resort Casino posted a 15% decrease in profits, from $44.2 million in December 2012 to $37.6 million the same month of 2013, figures are less dramatic for Mohegan Sun, as revenues only dropped 8%, to $45.9 million.
For Foxwoods Resort Casino, betting revenues were down 21%, to $431.5 million, while Mohegan Sun saw a 7% drop in wagering, to a total of $570.6 million. Quoted by recent gambling news, Foxwoods Chief Executive Scott Butera explained: “The numbers are on par with what our expectations were for December.” Bad weather and the Christmas season are to blame for the low attendance, he thinks.
Profits from tax decreasing
November was a good month for Foxwoods, with revenues from slot machines increasing by 2.1% compared to the same month in 2012. Its neighbor Mohegan Sun posted a 1% decrease in slots revenues for November.
According to American gambling laws, the state’s casinos have to pay 25% of their total profits to the state. Foxwoods contributed $9.4 million in tax, while Mohegan Sun paid $11.5 million. In 2007, the state earned $430 million from taxing gambling venues, while last year’s profits decreased to $296 million.
The two casinos have tough competition to look forward to, with more gambling revenues in plan for the Northeast.