Mohegan has released its third quarter fiscal 2025 results for the period ending June 30, reporting total net revenues of $436.9 million, down 1.6% from the $444.1 million posted a year earlier. Income from operations fell 20% to $73.3 million, while adjusted EBITDA slipped 16.3% to $94.1 million. The company also posted a net loss attributable to Mohegan of $5.2 million, though this was a marked improvement from the $29.9 million loss recorded in the same quarter last year.

Land-Based Resorts Face Year-on-Year Decline

The decline in consolidated performance was largely tied to prior-year one-off benefits, including management fees from the ilani Casino Hotel in Washington and a non-cash digital license fee at Mohegan Pennsylvania. According to Chief Financial Officer Ari Glazer, “after normalizing the prior year period for the ilani and Mohegan Pennsylvania adjustments, Adjusted EBITDA would have been up $4.4 million, or 4.9%.”

While land-based operations softened, Mohegan Digital delivered exceptional results. As stated in the Mohegan Third Quarter Fiscal 2025 Operating Results official report [pdf], net revenues from the digital segment jumped 61.2% to $67.5 million, with adjusted EBITDA up 48.2% year-on-year to $34.2 million. Growth was driven primarily by strong performance in Connecticut, alongside expanding operations in Pennsylvania and Ontario.

Domestic Resorts revenue for the quarter came in at $297.3 million, a 4.3% decline from the prior year, while adjusted EBITDA dropped 14.7% to$70.1 million. Gaming revenue within this segment fell 5.6% ($11.8 million), and non-gaming revenue declined 1.6% ($1.6 million). Sun in Connecticut remained the flagship performer, contributing $58.2 million in adjusted EBITDA, though the property faced higher labor costs tied to new food and beverage outlets.

International Resorts, comprising Mohegan’s Niagara properties in Canada, generated $75.1 million in net revenue, nearly flat compared to the previous year, but reported a 5.2% dip in adjusted EBITDA to $5.2 million. The company attributed the flat revenue to a return to higher pre-COVID gaming tax rates despite volume growth.

The Corporate segment posted a loss of $15.4 million, down sharply from a profit last year, reflecting the absence of ilani management fees and the ongoing costs associated with corporate holdings, including a 10% stake in Resorts Casino Hotel in Atlantic City and ownership of the WNBA’s Connecticut Sun.

Strategic Refinancing and Future Outlook

Chief Executive Officer Raymond Pineault emphasized the significance of recent financial restructuring: “The completion of our comprehensive refinancing has placed us in a great position to continue executing our strategy, to be one of the premier omnichannel enterprises. This important milestone further supports our opportunities for long-term growth and the evolution of our Digital business provides greater strategic flexibility. Now that we’ve addressed our capital structure, we’re singularly focused on executing our plan and increasing value for all our stakeholders.”

Mohegan’s strategic direction now leans heavily on its digital operations, a sector that has consistently posted growth while its resort properties have faced competitive and economic pressures. The company launched its Pennsylvania online casino in April 2024, further strengthening its digital footprint.

In addition to its core operations, Mohegan recently navigated the fallout from defaulting on the Korea Term Loan tied to the $1.6 billion Inspire Entertainment Resort in Incheon, South Korea. Lender Bain Capital has since assumed control of the property, removing it from Mohegan’s operational portfolio. The company is also in the process of selling the Connecticut Sun to billionaire Steve Pagliuca for $325 million, a record-setting transaction for a women’s sports franchise.

Looking ahead, Mohegan has expressed interest in expanding into new markets, including pursuing a potential license in New York City. While its domestic and international resorts remain profitable, especially the Uncasville flagship, the strong momentum in Mohegan Digital signals a shift in focus toward online gaming growth to complement its traditional operations.