Conditional License Approved to Operate Slot Machines at Mohegan Sun at Pocono Downs
The Mohegan Tribal Gaming Authority, or the Authority, the operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and its subsidiary, Downs Racing, L.P., or Downs Racing, the operator of a harness racetrack located in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, announced today the approval of their application for a Conditional Category One Slot Machine License by the Pennsylvania Gaming Control Board on September 27, 2006. This license will enable Downs Racing to operate slot machines at Mohegan Sun at Pocono Downs, subject to certain conditions, including the payment of a $50.0 million license fee to the Commonwealth of Pennsylvania and the fulfillment of certain other regulatory requirements.
As previously announced, Downs Racing has made significant improvements and additions at Mohegan Sun at Pocono Downs, including improvements to the grandstand for the installation of approximately 1,080 slot machines, a new state-of-the-art simulcast facility, a new 10,000-square-foot food court and road and parking infrastructure enhancements. The new slots facility is expected to be open to the public in November or December of 2006, after receipt of the slot machine license.
The Authority and Downs Racing have also previously announced plans for the development of a separate new gaming and entertainment facility to be constructed on the existing grounds of Mohegan Sun at Pocono Downs. The plans, scope and timing of this development continue to be refined at this date.
Bruce S. Bozsum, Chairman of the Authority’s Management Board and the Mohegan Tribal Council, said, “The approval of this license is very important as it represents a significant milestone in the evolution of the Mohegan Tribe. This was also a critical step in our plans to be the first enterprise to offer both racing and gaming amenities in the Commonwealth of Pennsylvania and we are very proud of this achievement.”
About the Authority
The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, a federally recognized Indian tribe with an approximately 507-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive power to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex that is situated on a 240-acre site on the Tribe’s reservation and, through its subsidiary, Downs Racing, owns and operates Mohegan Sun at Pocono Downs, a harness racetrack located in Plains Township, Pennsylvania and five OTW facilities located elsewhere in Pennsylvania. The Tribe’s gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.0 million square foot facility, which includes the Casino of the Earth, Casino of the Sky, the Shops at Mohegan Sun, a 10,000-seat Arena, a 350-seat Cabaret, meeting and convention space and an approximately 1,200-room luxury hotel. More information about the Authority and its properties can be obtained by visiting http://www.mtga.com.
Special Note Regarding Forward-Looking Statements
Some information included in this press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include information relating to business development activities, as well as capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and increased competition. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” “believe” or “intend” and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority. These risks and uncertainties include, but are not limited to, those relating to increased competition (including the legalization or expansion of gaming in New England, New York, New Jersey and Pennsylvania), the financial performance of Mohegan Sun, Pocono Downs and the OTW facilities, dependence on existing management, potential adverse changes in local, regional, national or global economic climates, the Authority’s leverage and ability to meet its debt service obligations, changes in federal or state tax laws or the administration of such laws, changes in gaming laws or regulations (including the limitation, denial or suspension of licenses required under gaming laws and regulations), and the continued availability of financing. Additional information concerning potential factors that could affect the Authority’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2005, as well as its other reports and filings with the SEC. The forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure you that projected results or events will be achieved or will occur.
Mitchell Grossinger Etess
Chief Executive Officer
Mohegan Tribal Gaming Authority
Robert J. Soper
President and Chief Executive Officer
Mohegan Sun at Pocono Downs