Foxwoods and MGM Joint Venture Ends – 2013

MGM Ends Agreement with Foxwoods

MGM Ends Agreement with Foxwoods

As part of an update of our website, posts, pages, and links,  I found an interesting post from 2013. It covered the Foxwoods and MGM joint venture. I hope you enjoy this look back sixteen years ago.  Remember, this is one of our first posts as NETimeGambling. Foxwoods and MGM Joint Venture Ends – 2013

The Lion will roar no more in Connecticut – not that it really has.

Foxwoods Resort Casino is parting company with Las Vegas-based MGM Resorts International. They announced the end of the licensing agreement that enabled Foxwoods to brand its second casino tower MGM Grand at Foxwoods. The “Wonder of it All” will use a six-month transition period to complete the change.

To be honest, the “lion” hasn’t really been roaring a lot in the past 6 years. Terrific entertainment in the MGM Grand Theater, a few outstanding restaurants and the club Shrine have been the highlights. The MGM property has been underwhelming. The small casino has very little personality. The fact that MGM had to go through Foxwoods’ Rewards Club also hampered their clientele. Being able to play in Vegas and spend in Foxwoods, or vice versa, would have definitely increased popularity.

It wasn’t the best time – Foxwoods and MGM Joint Venture Ends – 2013

The tribe and MGM — then known as MGM Mirage — signed the agreement in 2006.  It was at a time when both were eager to pursue gaming opportunities in the Northeast. MGM Grand, built next to the tribe’s Foxwoods Resort Casino complex cost more than $700 million. It opened on May 2008, just as the effects of the Great Recession were beginning to be felt. Here in New England, many thought, as yours truly, that this was an ill-timed mistake. Many in the gaming industry felt they are recession proof. Originally, the “strategic alliance” reached between the parties in 2006 called for them to collaborate on projects off the Mashantucket reservation. Due to the economic downturn, other collaborative projects never materialized.

The community of Milford, MA defeated the Foxwoods attempt at a Massachusetts Casino.

Scott Butera, Foxwoods president and chief executive officer, said Friday’s announcement is related to an ongoing Foxwoods makeover. “We wanted to consolidate our property under the Foxwoods brand,” he said.

And then there’s Massachusetts

Both parties were “mutually agreeable” to the dissolution of the Foxwoods-MGM licensing agreement, said Clark Dumont, an MGM spokesman. He noted that MGM hopes to develop a resort casino in Springfield, Mass., less than 80 miles from Foxwoods. MGM is quite confident they will be chosen over the other CT casino’s interests in Palmer by the Mohegan Sun.

“With MGM working toward a significant presence on the East Coast, it was the opportune time to review our relationship (with Foxwoods) and dissolve the licensing agreement.” Recent attention to expansion into Maryland, Massachusetts, and even Great Britain presents a global expansion out of Nevada.  It all follows MGM’s successful casino in Macau, China.

Foxwoods, is also involved in a Massachusetts casino proposal. It heads a partnership seeking a license to build a $1 billion project in the Greater Boston town of Milford. However, Foxwoods has had lots speed bumps – namely community opposition and making deadlines due to changes in planning. Against Steve Wynn for the same area license, Foxwoods is definitely the underdog.

Related Post – Foxwoods Massachusetts Plans to Increase Size of Casino Development

Related Post – If Foxwoods Lands in Massachusetts, Where Will It Be?

Foxwoods has made great changes and renovations, due to Butera’s national gaming experience. Let’s hope it continues. Imagine the likes of Wynn, MGM, Foxwoods and Mohegan Sun in a radius of 90 miles. Competition can only be good for the consumer!

That’s all for now.

Binbin