Digital EBITDA Up 47.9%. Liquidity Strengthening. One Bigger Pivot – Mohegan Is Evolving Fast Under CFO Ari Glazer
Mohegan reported second-quarter fiscal 2026 revenue growth of 2.4% to $429m, as record digital gaming performance increasingly offset weakening profitability across its land-based regional casino portfolio amid rising operating and financing costs.
Adjusted EBITDA increased 1.8% year-on-year to $85.4m, while net income attributable to the company fell 69.9% to $14.1m. Interest expense rose to $50.8m during the quarter, continuing to weigh on bottom-line profitability.
The quarter was also marked by Mohegan’s agreement to sell the WNBA’s Connecticut Sun for $300m, reinforcing management’s focus on liquidity preservation, balance-sheet flexibility, and core gaming operations following the separation of the Inspire Korea business from continuing operations.
Digital Division Continues to Drive Earnings Growth
Mohegan Digital remained the company’s strongest-performing segment during the quarter, underlining the growing importance of online gaming profitability within regional US casino portfolios.
Digital revenue increased 40.2% year-on-year to $79.3m, while Adjusted EBITDA rose 47.9% to $39.7m. The company said its Connecticut online gaming operations delivered record quarterly revenue and EBITDA, supported by continued customer engagement and improved monetisation metrics.
Average revenue per monthly active user in Connecticut reached $470 during the quarter, representing an all-time high for the segment.
The results reinforce how digital gaming operations are becoming increasingly important for tribal and regional casino operators seeking higher-margin revenue streams as mature land-based markets experience slower growth and higher operating costs.
Domestic Resorts Face Continued Margin Compression
Performance across Mohegan’s core domestic resort portfolio weakened during the quarter despite continued slot strength at Mohegan Sun.
Domestic Resorts revenue declined 3.1% year-on-year to $288.6m, while Adjusted EBITDA fell 16.1% to $59.7m.
Management attributed the decline partly to unfavorable table hold and lower table volumes, while rising operating costs – including higher energy expenses – further compressed margins, highlighting continued profitability pressure across mature regional casino markets.
The prior-year comparison also included $4.8m in Las Vegas operations revenue that is no longer included within the segment.
Despite broader margin pressure, Mohegan Sun exceeded 60% slot market share in Connecticut during March, representing its highest monthly share level in five years and indicating continued resilience in core slot operations despite softer table performance.
International Operations Remain Low-Margin
International Resorts revenue was broadly flat at $66.5m during the quarter, while Adjusted EBITDA declined 33.1% to $1.8m.
Adjusted EBITDAR increased 16.3% after excluding lease-related costs, reflecting the ongoing impact of contractual obligations on reported profitability.
The segment continues to generate relatively limited earnings contribution compared with its revenue scale, with lease obligations and operational costs continuing to pressure margins.
Asset Rationalisation and Liquidity Remain Strategic Priorities
Mohegan ended the quarter with $126.9m in cash and cash equivalents and reported $228.5m in borrowing capacity under its senior secured credit facilities.
While liquidity remained stable sequentially, rising interest expense and softer land-based EBITDA continue to increase the strategic importance of digital cashflow generation, portfolio rationalisation, and potential non-core asset monetisation initiatives.The planned sale of the Connecticut Sun further signals management’s emphasis on strengthening liquidity and prioritising core gaming operations as financing costs remain elevated and regional casino margins tighten.
Source: Mohegan
