Mohegan Gaming Chief warns that prediction market platforms are looking to illegally erode tribal betting revenues
Cease-and-desist letters issued in December backed by 16 tribes
The Mohegan Tribal Gaming Authority is supporting Connecticut’s attempts to ban prediction markets, saying it is illegal sports betting that violates the tribe’s exclusive betting rights in the state.
Mohegan Chief Financial Officer Ari Glazer believes prediction-markets illegally circumnavigate the compacts, licensing deals and regulation that oversee tribal betting under federal law.
Mr Glazer said: “The two Connecticut-based Native American tribes have exclusivity on all forms of gaming in Connecticut, and we are actively working with all of the Connecticut constituents and regulators and government to ensure that that is the case. Sports related event contracts are gambling, plain and simple. I think there is no debate. The state of Connecticut has sent cease and desist letters to the predictive event contract operators. There was a hearing as recently as yesterday as the state of Connecticut. So today, the state is pursuing legal action, and of course, we’re supportive of that.”
Connecticut’s Department of Consumer Protection Gaming Division issued cease-and-desist letters in December to prediction market operators KalshiEX LLC, Robinhood Derivatives LLC and Crypto.com.
The move was supported by 16 tribes and the Indian Gaming Association.
Mr Glazer added: “We follow the prediction markets very closely. I think we’re very aligned with others in the gaming industry that we’re concerned about regulation and having fully regulated gaming products, we think that serves the consumers best interest.”
He raised his concerns about prediction markets as emerged as Mohegan reported its first-quarter results which saw Mohegan Sun generate its highest Q1 net slot win since FY’18. Alongside this, Mohegan Digital achieved its highest ever quarterly net revenues and Adjusted EBITDA with monthly active users at an all-time high.
In its domestic resorts, revenues of $300m decreased $12m compared with the prior-year period. Entertainment revenues declined as a result of fewer arena events in the current period, while the prior-year comparable period benefitted from favorable table hold at Mohegan Sun and $6.6m of net revenues from Las Vegas operations. Adjusted EBITDA of $64.8m decreased $9.8m compared with the prior-year period, factoring in the previously described items.
“Adjusted EBITDAR of $95.3m increased 2.4 per cent on flat net revenues. Results were largely driven by Mohegan Digital delivering its strongest quarterly performance to date. Adjusted EBITDA of $86.4m decreased $3.1m, as the prior year comparable period benefitted from favorable table hold at Mohegan Sun and a one-time property tax adjustment at Niagara Resorts. After normalizing for these factors, Adjusted EBITDA would have been up $4.8m, or 5.9 per cent,” said Glazer.
