The Mohegan Tribal Gaming Authority has told industry analysts it expects to complete almost all funding for its US$1.6 billion Korean integrated resort project, Mohegan INSPIRE, by the end of the September quarter.
The company also confirmed that development remains on track for a soft-opening of non-gaming amenities by the end of the year, with the casino pegged to open in early 2024.
Providing an update during the company’s earnings call for the March 2023 quarter, Mohegan’s Chief Financial Officer, Carol Anderson, confirmed there is around US$91 million in additional investment required from now until completion with the company having kicked in around US$28 million between January and March.
“As previously announced, we agreed to make additional investments of up to KRW155 billion or US$119 million to fund costs to complete Mohegan Inspire, of which approximately KRW36 billion or US$28 million was contributed in the March 2023 quarter,” Anderson said.
“The remainder of that we anticipate will be funded through the remainder of this fiscal year, so through 30 September 2023.”
Thus funding, Anderson said, comprised almost all costs including “construction as well as additional support for pre-opening,” such as staffing and marketing costs. The remaining funding, she added, would come from a combination of cash and drawdown from Mohegan’s revolving credit facility.
Asked if he was confident in Mohegan staying on budget and completing its funding commitments to the Korea project, Mohegan President and CEO Ray Pineault said, “I just came back from Korea [and] the progress they made last month was tremendous – I’m very confident that in the fourth quarter of this calendar year we’ll be able to open the non-gaming portions of the resort.
“The casino license itself is subject to some conditions following the opening of the non-gaming amenities to be able to do that. I am highly confident we will be able to do that. We are over 98% bought out on the project (procurement of major trades and long-lead items) and over 70% complete [on development] into May, so the budget itself is coming into sharper focus and we accent any major changes. We do not anticipate any additional equity injections over those we have already disclosed.”
When complete, Phase 1 of Mohegan INSPIRE will incorporate a foreigner-only casino, three hotel towers with a combined 1,200 rooms, a 15,000-seat arena and convention space plus dining, retail, a year-round indoor water dome experience and an outdoor family park.
Mohegan said the size and scale of Mohegan INSPIRE will be comparable to its US flagship, Mohegan Sun, in Connecticut.