he Mohegans, who run the day-to-day operations of Resorts Casino Hotel, won approval of a new management agreement on Wednesday. It allows them to invest in Resorts' Internet operations, but cancels a provision that would have allowed them to buy an additional 15 percent of Resorts itself.
The tribe's ownership stake in Resorts will remain at 10 percent after a ruling by the New Jersey Casino Control Commission.
Matthew Levinson, the commission's chairman, said the 2012 pact between Resorts and the tribe's gambling arm, Mohegan Gaming Advisors, "has proven to be a valuable tool in strengthening Resorts' financial position, bringing new visitors to Resorts and Atlantic City, and ultimately furthering the ongoing transition of Atlantic City into a destination resort."
The commission extended the management agreement through 2019. In December 2009, Resorts' then-owners Colony Capital were within hours of handing over the keys to lenders and walking away from the casino. Months later, veteran casino executive Dennis Gomes and New York real estate investor Morris Bailey bought it for $31.5 million and set about reviving the first casino to open in the United States outside of Nevada.
When Gomes died in February 2012, Bailey persevered, continuing to write checks to keep Resorts afloat, convinced that better days were ahead.
Badly missing Gomes' experience in running a casino, Bailey inked a deal with the Mohegans to manage the day-to-day affairs of Resorts, in return for a 10 percent ownership stake in it, and an affiliation deal that allows Resorts access to customer databases of Mohegan-run casinos in Connecticut and Pennsylvania.
Resorts returned to profitability last year, posting a $2.5 million gross operating profit, and expects to do better this year.