MGE’s Kevin Brown steps down, citing personal reasons

Tuesday 12th of February 2019

Kevin Brown, chairman of the Mohegan Tribal Council, has stepped down from his position citing undisclosed personal reasons, effective immediately.

The announcement came as a surprise, as it was not mentioned on the company’s earnings conference call just a few days earlier. There was no explanation for his resignation other than “personal reasons.”

Brown was elected to his post in 2013, and was in the midst of his second term. His resignation from the Tribal Council will also see him stepping down from the position of chairman of Mohegan Gaming and Entertainment.

MGE operates properties in Connecticut, New Jersey, Washington, Pennsylvania, Louisiana, Niagra Falls in Canada, and is building an IR in South Korea set to open in 2022. Mohegan is also vying for a license in Japan, making its first strides in Hokkaido, Japan’s northernmost prefecture in January.

On Thursday, the company reported a year-on-year decrease in net revenue and adjusted EBITDA for the first quarter ended Dec. 31, 2018.

Net revenue reached $319.5 million, down 3.6 percent year-on-year from the prior year period. MGE said this was driven by slightly lower gaming revenues at Mohegan Sun and Mohegan Sun Pocono, and continued increases in promotional activities in the Mohegan Sun Pocono gaming market.

These factors, combined with higher slot taxes assessed by the Commonwealth of Pennsylvania and increased healthcare costs, all contributed to the year-over-year decline in Adjusted EBITDA, which reached $71.9 million, down 5.4 percent year-on-year.