Mohegan Tribal Gaming Authority Announces Cost Reductions That Do Not Include Layoffs


The Mohegan Tribal Gaming Authority (“MTGA” or the “Authority”) announced today a series of cost reduction initiatives to be implemented at its flagship property, Mohegan Sun, in Uncasville, Connecticut, as a result of the continuing economic slowdown.
In a continued effort to maintain its record of no employee layoffs, something that has been accomplished due to long-standing financial success since opening in 1996, the MTGA Management Board is implementing alternative cost saving initiatives that will better align the Authority’s cost structure with the current economic environment while ensuring minimal impact on the guest experience.
Effective February 1, 2009, all Mohegan Sun employees, including senior management, and its Connecticut affiliates, will have salary rollbacks of 10 percent for Vice Presidents and above, 7.5 percent for middle management and 4 percent for all line and hourly employees. Other actions include suspension of all annual and merit-based compensation increases as well as employer-matched 401K contributions.
The Authority is also implementing a number of other initiatives to reduce operating expenses, including marketing efficiencies, reducing hours of operations in some outlets, and working with all business partners and service providers to increase cost-effectiveness.
“These are difficult times for the entire Mohegan family,” said Bruce “Two Dogs” Bozsum. “Sacrifices are being made by the employees of Mohegan Sun, our Tribal Government, and by the members of our Tribe. I am confident we will weather this as we always have, together, and be stronger for it.”
“Due to unprecedented market conditions, the Authority has been forced to make a number of difficult, but necessary, decisions to reduce our operating costs,” said Mitchell Etess, President and Chief Executive Officer of Mohegan Sun. “However, we are determined to remain the leader in our industry without compromising our core values and clear competitive advantages.”
Mr. Etess added, “In addition to respect for our employees, we also have a responsibility to our banking partners, bondholders and stakeholders who continually support our vision. We are confident that we are taking the appropriate measures to improve our financial results and grow our existing market share advantage over competitors.” 

About the Authority
The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut (the “Tribe”), a federally recognized Indian tribe with an approximately 507-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive power to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex that is situated on a 185-acre site on the Tribe’s reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania and several off-track wagering facilities located elsewhere in Pennsylvania.
The Tribe’s gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes the Casino of the Earth, Casino of the Sky, Casino of the Wind, The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the approximately 1,200-room luxury Sky Hotel Tower. The Casino of the Wind opened on August 29, 2008, with approximately 65,000 square feet of additional gaming space and new dining and retail amenities. Mohegan Sun at Pocono Downs opened Project Sunrise on July 17, 2008, a gaming and entertainment facility adjacent to the Phase I gaming facility. The combined facility now includes approximately 2,500 slot machines, several dining options, including a 300-seat buffet and a quick-serve dining area, six retail outlets, three bars/lounges, additional parking and bus amenities. More information about the Authority and its properties can be obtained by visiting

Special Note Regarding Forward-Looking Statements
Some information included in this press release contains forward-looking statements. Such statements include information relating to business development activities, as well as capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and increased competition. These statements can sometimes be identified by the use of forward-looking words such as “anticipate,” “expect,” and variations of such words and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority. Additional information concerning potential factors that could affect the Authority’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2008, as well as in its other reports and filings with the SEC. The forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure you that projected results or events will be achieved or will occur.