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Mohegan Tribe spent $22M on failed casino bid in Massachusetts

Filed Under: Business Deals | Connecticut | Litigation
More on: connecticut, elections, massachusetts, mohegan

Artist's rendering of what was to be a Mohegan Sun casino in western Massachusetts. Image from Mohegan Tribe

The Mohegan Tribe of Connecticut spent at least $22 million pursuing a commercial casino in Massachusetts, according to court documents.

The tribe planned to build a huge gaming facility in Palmer, in the western part of the state. Voters rejected the plan and the tribe was hit with a lawsuit by the managers of the site.

The tribe is now counter-suing Northeast Realty Associates. Documents claim the company violated an exclusivity deal and undermined the casino referendum, The Boston Globe reported.

After losing the referendum in Palmer, the tribe turned to the eastern part of the state. Voters in Revere are backing the $1.3 billion Mohegan Sun Massachusetts but the plan requires state approval.

In related news, the Mohegan Tribal Gaming Authority announced final operating results for the second fiscal quarter ended March 31, 2014. Profits and revenues dropped, as had been expected.

“Considering a number of factors outside of our control, including unfavorable weather, a continued sluggish economic backdrop and tough comparisons, our properties performed quite well during our second fiscal quarter compared to many of our regional gaming peers,” CEO Mitchell Grossinger Etess said in a press release. “With that being said, we continue to pursue new measures to improve efficiencies at our properties and explore initiatives to diversify into new jurisdictions.”

Get the Story:
Mohegan Sun sues landowner in Palmer (The Boston Globe 4/29)
Mohegan Sun files suit against Palmer landowner, seeking to recover $22 million investment (The Springfield Republican 4/29)

Related Stories:
Mohegan Tribe faces depositions in Massachusetts casino spat (03/11)

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