Gomes alone; Mohegan Sun pink-slip-slidin’ away

Former Resorts Atlantic City underboss Aaron Gomes might want to change his travel plans. Scarcely had he announced his departure from his late father’s casino than his new gig, Sydney‘s troubled Star Casino, looks very doubtful. Gomes had planned to join former Borgata prexy Larry Mullin, But now Mullin is on the way out, effective Jan. 31. His exit seems to be as amicable as such things can — but getting one’s walking papers after only eight months on the job is hardly a signal that everything’s coming up roses at Star. Since the Echo Entertainment board has declared its intention to scour the globe for a new CEO, must feel like something of a red-headed stepchild at the moment. Then again, who would want the job at this juncture? James Packer (right), who owns 10% of Echo, will soon get permission to enlarge his position, presaging a takeover.

It’s too late for Gomes to beat a retreat to Atlantic City. Wasting no further time, operator and minority owner Mohegan Sun installed one of its own, Gary Van Hettinga (left), as CEO of the casino-hotel. So, if the Mohegans and majority owner Morris Bailey reach an impasse, whose bidding will Van Hettinga do, especially when he’s also still wearing the hat of Mohegan Gaming Advisors‘ president? The elder Gomes’ “dream team” is out, replaced largely by some of the last vestiges of the horrific Columbia Sussex era at the Tropicana Atlantic City. They include hatchet man Mark Giannantonio, who left labor strife in his wake, and former Trop marketing boss Mary Tindall, a 26-year veteran at the property. Tindall has the virtue of knowing the market but Giannantonio has always seemed hopelessly out of his depth on the Boardwalk. Ominously, Van Hettinga’s first moves as CEO were to jack up room rates and curtail comps. For more of this depressing man’s even more depressing business philosophy, see below. Be warned that the audio quality is ghastly.


The drab and uninspiring vision of Gary Van Hettinga.

The one change that makes sense is the relocation of entertainment booking to Mohegan HQ in Uncasville. With three casinos now under its remit, it’s only logical for Mohegan Sun to centralize this department instead of having its showroom bosses flailing about, uncoordinated. However, the Mohegans’ plunge into Atlantic City looks odds considering that …

It’s blaming Revel for fiscal woes back at home that resulted in nearly 330 pink slips yesterday, including the elimination of the entire keno operation. Those walking the plank included casino CEO Jeffrey Hartmann, installed only last year. Thriving Mohegan Sun Pocono Downs‘ top man, Bobby Soper, will be brought north to clean up the mess. And what a mess it is! Confronted with a five-year, 33% slide in slot revenues and an emaciated F&B department, Soper will have his work cut out for him. Genting Berhad‘s Gotham racino, Resorts World New York, is overpowering Mohegan Sun, whose handle was only 63% as large as Resorts World’s last month — and the latter only has VLTs!

So perhaps the Mohegans move into Atlantic City can be rationalized as an attempt to recapture lost business. However, the prevailing mix of financial decline and retread executives should give the Massachusetts Gaming Commission all the reason it needs to punt Mitchell Etess back into Connecticut, where he belongs.

This entry was posted in Atlantic City, Australia, Boyd Gaming, Carl Icahn, Columbia Sussex, Current, Dennis Gomes, Economy, Genting, Marketing, Massachusetts, New York, Racinos, Regulation, Tourism, Tribal, Tropicana Entertainment. Bookmark the permalink.