Mentat: State: We need to raise taxes to pay for our schools.
Citizens: HELL NO NO TAXATION WITHOUT REPRESENTATION IT'S OUR MONEY WE KNOW HOW TO SPEND IT BETTER THAN THE GOVERNMENT DOES WE DON'T EVEN HAVE KIDS IN SCHOOL SO WHY SHOULD WE HAVE TO PAY FOR SOMEONE ELSE'S KIDS RAR SOCIALISM
State: We're going to run casinos and use part of the profits to fund education.
Citizens: OK, here's our social security checks.

To be fair: fark other peoples kids. They keep me up on long flights and are loud. I hope they get polio. I do not want my money going towards them, I want it going towards fixing The god damn potholes on my commute

In this crappy state (South Dakota), casinos are everywhere. Because no nice restaurants stay open for long (mainly because the residents would prefer Applebees to a good local Mexican joint) the buildings often get converted into casinos. A nice little local place down the way is now another farking casino. And who goes to these wonderful, smoke filled places of depression? The addicts, the welfare recipients, depressed old people. I rarely see more than two or three cars at any of these places, yet new ones open up all the time.

So the banks are going to take a gamble that their bet will eventually pay off?

How the fark does a Casino go out bankrupt?

I hate casinos, so I'm getting a kick out of this story. Every casino that goes out of business is like a Christmas present to me. Fark 'em all.

Man you gotta try really damn hard to go bankrupt as a casino, right? I mean, they built them in the middle of the farking Nevada desert and mobbed them up all to shiat and they STILL made money hand over fist.

Gtorch: I love it how state officials think gambling is a great idea.

McCoy: They'e dying Jim!
Kirk: LET THEM DIE!

"Gaming. Keep gaming."

Seriously, officials always think of all the gambling revenues the state over make... not realizing the profits are because you can't gamble everywhere

Mentat: sheilanagig: Let's not prop up more failed businesses please. True fiscal conservatism, if it comes into it, is to leave them to die where they fall, even if they're a bank or a casino.

What's the difference?

One makes money, other one doesn't.

Buy this
Link (new window)

LeroyB: So the banks are going to take a gamble that their bet will eventually pay off?

Good: "fiscal fourth-quarter results showing net income attributable to the authority rose to $46.7 million"

A Concern: "Mohegan's total debt as of Sept. 30 was $1.6 billion, the authority reported. Of that, $811.1 million comes due within the next 12 months, including $535 million that needs to be paid by March 9 and $250 million in 8 percent notes that mature on April 1."

If they can refinance that debt, they should be fine. Casinos tend to be very debt intensive, so the terms of the refinancing will be of the utmost importance for the long term viability of Mohegan's.

jayhawk88: Man you gotta try really damn hard to go bankrupt as a casino, right? I mean, they built them in the middle of the farking Nevada desert and mobbed them up all to shiat and they STILL made money hand over fist.

In 2011 the profit margin of casino companies in Vegas was between -2 and 11%. If you want to make money hand over fist - develop software.

jayhawk88: Man you gotta try really damn hard to go bankrupt as a casino, right? I mean, they built them in the middle of the farking Nevada desert and mobbed them up all to shiat and they STILL made money hand over fist.

Running casinos is a hard business because of the debt service that seems required. Look at Station or the Riviera or Trumps. Hell, even the Macau casinos hit a speed bump over the last couple of years.

tillerman35: I hate casinos, so I'm getting a kick out of this story. Every casino that goes out of business is like a Christmas present to me. Fark 'em all.

To be clear, this casino will not go out of business and the owners did not take short-term debt out. The owners over-leveraged their balance sheet in good times with long-term debt that likely became non-refinancable after the credit crisis (as most gaming assets have). In a normal situation, what will happen is that the lenders will likely restructure and reduce their debt and take over all or a portion of the equity of the company for themselves.

The interesting thing about this situation (and I'm by no means a lawyer or an expert so anyone with knowledge is welcomed) is that I think this is owned by an Indian Nation, which has separate laws from the U.S. to some degree which makes it VERY unclear what happens in bankruptcy. Also, because the debt holders aren't part of the Indian Nation, it may also be unclear how they can even operate a casino in Connecticut (because I think gaming on a non-reservation may be illegal).

*picks up apple and walks to counter*

"Oh noooooo..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"Derp, and uh...hurr Lucky-4-Life derp and TUHEW of the errr derp megamillYUNS, hurr and..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"FAAAAAVE of the PowIRBALLZ please..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"How much did AH get? FAAVE bucks? OK and three of those..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"Hold on, got some change here..."

*spills out pennies on the counter*

"Sorry brah"

And that's the part where I give up.

SoCalSurfer: To be fair: fark other peoples kids. They keep me up on long flights and are loud. I hope they get polio. I do not want my money going towards them, I want it going towards fixing The god damn potholes on my commute

Fark your commute. I don't want the government to spend my money fixing roads I don't drive on. I want the government to fix the roads I drive on, and keep the kids off my lawn, and that's it. Everything else can go to hell.

torch: I love it how state officials think gambling is a great idea.

McCoy: They'e dying Jim!
Kirk: LET THEM DIE!

must... not... argh! SPOCK!! It was Spock that said "they're dying"!!

/nerd rage

Mentat: State: We need to raise taxes to pay for our schools.
Citizens: HELL NO NO TAXATION WITHOUT REPRESENTATION IT'S OUR MONEY WE KNOW HOW TO SPEND IT BETTER THAN THE GOVERNMENT DOES WE DON'T EVEN HAVE KIDS IN SCHOOL SO WHY SHOULD WE HAVE TO PAY FOR SOMEONE ELSE'S KIDS RAR SOCIALISM
State: We're going to run casinos and use part of the profits to fund education.
Citizens: OK, here's our social security checks.

you might want to chug some sapho juice.

AngryDragon: How the fark does a Casino go out bankrupt?

Came here to ask this myself. You have to be one hell of a lousy businessman to lose money on a casino.

AngryDragon: How the fark does a Casino go out bankrupt?

The skim must be pretty high.

jayhawk88: Man you gotta try really damn hard to go bankrupt as a casino, right? I mean, they built them in the middle of the farking Nevada desert and mobbed them up all to shiat and they STILL made money hand over fist.

That was THEN and this is NOW.

A casino goes bankrupt by falling in with bankers.

/Need a short-term loan, Indian Tribe Sitting on a Gold Mine?
//Bankers: There's no business they cannot bleed dead.

Snake Vargas: *picks up apple and walks to counter*

"Oh noooooo..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"Derp, and uh...hurr Lucky-4-Life derp and TUHEW of the errr derp megamillYUNS, hurr and..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"FAAAAAVE of the PowIRBALLZ please..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"How much did AH get? FAAVE bucks? OK and three of those..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"Hold on, got some change here..."

*spills out pennies on the counter*

"Sorry brah"

And that's the part where I give up.

.....what am I reading?

Maybe they should tighten their slots.

The casinos will file chapter 11 and the lenders will have the loans involuntarily renewed.

Not news. Standard operating procedure

Foolkiller: Maybe they should tighten their slots.

Insert Kegel joke here.

/ha, insert.

Jesus, how is Mohegan Sun going to survive with three new casinos going up in formerly casino-less Massachusetts?

HotIgneous Intruder: A casino goes bankrupt by falling in with bankers.

/Need a short-term loan, Indian Tribe Sitting on a Gold Mine?
//Bankers: There's no business they cannot bleed dead.

Ehh...while it's always the easy answer to blame bankers (although many times you would be correct), after looking through the financial statements, the Tribe has taken ~$325mm of dividends out of the business over the last 5 years, which if they kept in the company would probably not be in the mess they're currently in.

RoxtarRyan: Snake Vargas: *picks up apple and walks to counter*

"Oh noooooo..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"Derp, and uh...hurr Lucky-4-Life derp and TUHEW of the errr derp megamillYUNS, hurr and..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"FAAAAAVE of the PowIRBALLZ please..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"How much did AH get? FAAVE bucks? OK and three of those..."

*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching
*CONGRATULATIONS, MULLET-HEAD!* cha-ching cha-ching

"Hold on, got some change here..."

*spills out pennies on the counter*

"Sorry brah"

And that's the part where I give up.

.....what am I reading?

Sounds like an observed scene at a convenience store.

Another interesting thing about these two casinos:

Mohegan Sun is the 2nd largest casino in the USA.

Foxwoods is the 3rd largest casino in the world. The only two bigger are in Macao, China.

I live within 5 miles of both casinos. If they tank, the already crappy housing market will be completely desimated. On a good note the traffic around here will clear up. Farking tourists.

Do casinos pay property taxes? Or, because they exist to generate wealth for the public treasury, are their operations taxed to a degree that would be essentially the same as paying property taxes?

Huck And Molly Ziegler: Do casinos pay property taxes? Or, because they exist to generate wealth for the public treasury, are their operations taxed to a degree that would be essentially the same as paying property taxes?

These casinos actually pay no taxes. They are part of a separate "Nation" outside of the U.S. as they sit on an Indian reservation. Casinos in Vegas and other state gaming areas (like Atlantic City) will pay normal business taxation depending on local, state and federal regulations.

The non-Indian management companies that actually operate the casinos will take ~20% of net revenues (but this number will vary as it's negotiated) and the management companies will pay taxes on whatever profits they make on that cash flow stream.

MrEricSir: AngryDragon: How the fark does a Casino go out bankrupt?

Came here to ask this myself. You have to be one hell of a lousy businessman Donald Trump to lose money on a casino.

For brevity's sake.

Mentat: What's the difference?

Casinos give you drinks while they screw you savagely?

AngryDragon: How the fark does a Casino go out bankrupt?

Not cheating.

Casinos go broke the same way many other businesses go broke. Over-saturation. The first casinos are wildly successful thus leading to more casinos. But ultimately the pile of gambling, or gaming, dollars is only so high and divided among the proliferation of casinos is not enough to sustain their profitability.

jayhawk88: Man you gotta try really damn hard to go bankrupt as a casino, right? I mean, they built them in the middle of the farking Nevada desert and mobbed them up all to shiat and they STILL made money hand over fist.

The sports books were getting killed by favorites in college football and the slots are almost all penny and dollar action. They aren't raking it in right now. And with the Harmon having to be ripped down the MGM has to feel pretty crappy about themselves too.

Looking to make casinos go bankrupt? Hire an expert