Mohegan Reports Flat Revenue in Q1 As Digital Gaming Hits Record

Mohegan Tribal Gaming Authority released fiscal first quarter 2026 figures showing steady revenue overall, pressure on some land based segments, and strong acceleration from digital gaming.

Good to Know

• Net revenue held nearly flat at $434.49 million for the quarter.
• Digital division delivered its strongest quarter ever with major user growth.
• Operating income dropped more than 20% due to weaker table hold and prior year adjustments not repeating.

Quarter ended December 31, 2025 produced a slight 0.2% revenue dip compared with the same period one year earlier. Income from operations fell to $56.1 million, reflecting softer performance on casino tables and the absence of one time benefits that lifted results in the earlier year.

Adjusted EBITDA reached $86.4 million, down 3.4%, while Adjusted EBITDAR rose 2.4% to $95.27 million as digital momentum offset some of the land based slowdown.

“Adjusted EBITDAR of $95.3 million increased 2.4% on flat net revenues. Results were largely driven by Mohegan Digital delivering its strongest quarterly performance to date,” said Chief Financial Officer Ari Glazer.

Online operations stood out across core jurisdictions. Connecticut, Pennsylvania, and Ontario each posted record activity, pushing monthly active users to an all time high. Adjusted EBITDA from the digital unit climbed 44.5% year over year, highlighting continued shift toward online casino and digital betting engagement.

Physical properties experienced a quieter stretch. Certain venues reported lower gaming volumes along with fewer arena events during the period, factors that weighed on overall operating income despite stable revenue.

“Adjusted EBITDA of $86.4 million decreased $3.1 million, as the prior year comparable period benefitted from favorable table hold at Mohegan Sun and a one-time property tax adjustment at Niagara Resorts,” Glazer said. “After normalizing for these factors, Adjusted EBITDA would have been up $4.8 million, or 5.9%.”

Net income reached $108.5 million, largely influenced by a $102 million non cash gain tied to derecognized guarantee liabilities connected to Mohegan INSPIRE, which is now classified under discontinued operations. Earlier reporting periods were restated to remove results associated with Inspire Integrated Resort Co., Ltd. and related Korean entities from continuing operations.

Liquidity improved during the quarter. Cash and cash equivalents rose to $154 million from $128 million three months earlier. Borrowing capacity under a senior secured credit facility totaled $146.8 million, with another $36.5 million available through Niagara Resorts.

During the investor call, leadership also addressed prediction market platforms, signaling opposition to their presence in Connecticut. Executives argued that such offerings infringe on tribal exclusivity agreements covering gaming activity in the state.

“I think the two Connecticut-based Native American tribes have exclusivity on all forms of gaming in Connecticut, and we are actively working with all of the Connecticut constituents, regulators, and government to ensure that that is the case,” Glazer said.

FAQ

How did Mohegan perform financially in fiscal Q1 2026?

Revenue stayed mostly flat while operating income declined, offset in part by strong digital gaming growth.

What drove the digital division performance?

Record activity in Connecticut, Pennsylvania, and Ontario pushed user numbers and earnings higher.

Why did operating income fall despite steady revenue?

Prior year results included favorable table hold and a one time tax adjustment that did not repeat.

Did the company report any major accounting changes?

Yes. Results tied to Mohegan INSPIRE and related Korean entities were removed from continuing operations.

What is Mohegan position on prediction markets?

Leadership said it is working with Connecticut officials to challenge platforms it views as unlicensed gambling

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