Profit soars for Mohegans on strength of Pa., Conn. gambling 5-2-07

UNCASVILLE, Conn. (AP) - Profits soared nearly 22 percent for the Mohegan Tribal Gaming Authority in the most recent quarter, powered by slot gambling in Pennsylvania's Pocono Mountains and its growing eastern Connecticut complex.

Earnings for the quarter that ended March 31 were $42.3 million, up from $34.8 million in the same quarter last year, the authority reported Wednesday.

Revenue for the quarter was $390 million, up by more than 16 percent from the same three months in 2006.

Gambling accounted for most of the revenue, at about $357 million.

The privately held tribal authority said it secured a $1 billion line of credit in March to finance construction of Project Horizon, a 1,000-room hotel and music hall at the Mohegan Sun in Uncasville.

“With so much of the attention of the board and senior management team being centered on Project Horizon and our expansion plans at Mohegan Sun at Pocono Downs recently, it is reassuring that we have not lost our focus on current operations,” said Bruce S. Bozsum, chairman of the authority's management board.

The Mohegans, owners of the Pocono Downs harness racing complex outside Wilkes-Barre, Pa., spent $70 million on a slots parlor with more than 1,000 machines, a bar, and a food court with three restaurants. It opened last year.

The tribe said Wednesday the increase in net income was due to Pocono Downs and the Mohegan Sun.