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Mohegan Tribe pays ex-partner $900M not to manage casino


Filed Under: Business Deals | Connecticut
More on: connecticut, igra, mashantucket, mohegan
   

The Mohegan Sun Casino, owned by the Mohegan Tribe of Connecticut. Photo from Facebook

The Mohegan Tribe of Connecticut has paid a former partner more than $900 million not to manage its casino, The New London Day reports.

In 1996, the tribe hired Trading Cove Associates to run Mohegan Sun. The management contract was supposed to last seven years, the maximum allowed under the Indian Gaming Regulatory Act.

But in 1999, the parties signed a so-called "relinquishment agreement" that gave control of the casino back to the tribe. In exchange, Trading Cove continued to receive revenues for another 15 years.

That agreement is finally up at the end of this year. Payments have run as high as $80 million a year, the Day reported.

"I can tell you that I and the tribal council are looking forward to the last payment," Chairman Kevin Brown told the paper.

The tribe has since expanded its gaming empire to Pennsylvania and is bidding on commercial casinos in Massachusetts and New York. And the tribe is looking to get into Internet gaming, having launched the free-play Mohegan Sun Poker site last year.

The Mashantucket Pequot Tribal Nation also runs a free-play gaming site.

Screenshot of the Mohegan Sun Poker website

Get the Story:
Mohegan Tribe welcomes end of management agreement costing millions (The New London day 6/1)
Online gaming sites boost Foxwoods, Mohegan Sun (AP 6/1)

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