While the operator also noted development in Connecticut, Mohegan Mohegan Digital grew into Ontario, Canada during Q3. 

Digital was the bright star for Mohegan, whose flagship Mohegan Sun land-based casino, also in Connecticut, recorded a revenue drop in many other divisions.

When considering the quarter, chief executive Ray Pineault singled out digital, noting the operator is highly focused on expansion within this sector.

Gaming suffers when Q3 revenue declines.
The three months to 30 June's net operating income dropped 0.4% year-on-year. 

Gaming had the biggest area of fall; income dropped 4.1% to $281.9 million. Still, it stayed by far Mohegan's major source of income.

While hotel income was also up 0.3% to $30.4m, food and beverage income surged 12.6% to $40.1m. Mohegan also pointed out a 10.1% increase in retail entertainment and other income throughout the quarter.

Not a digital conundrum for Mohegan. 
Examining each division, reduced slot and table gaming numbers caused revenue at Mohegan Sun to slide 2.5% year-on-year to $230.7m. The operator claimed that food, drink, entertainment, hotel income drove substantial non-gaming growth, therefore somewhat offset a drop in gaming income.

Reduced gaming numbers also caused revenue at Mohegan Pennsylvania to drop 2.3% to $65.2m. Still, the operator added, robust food, drink, and lodging income helped to somewhat offset this.

Niagara Resorts had better news; income up 1.8% to $81.2m. A continuous ramp of non-gaming facilities, including the new OLG Stage entertainment venue, propelled this. But reduced slot numbers caused gaming revenue to drop $5.2 million.

Digital income at $16.7 million was 56.6% higher than the declining land-based market. This followed the Ontario debut and expansion in Connecticut.

Rich Roberts, the president of Mohegan Digital, spoke to iGB earlier this week and indicated igaming would strive to help the brick-and-mortar properties.

"We won't be spreading quickly across the US and looking to compete in every state," Roberts added. "Mohegan Digital supports the Mohegan brand as an extension of the properties." <

More expenditure pushes net profit down.
At $333.0m, the quarterly operating expenses were 1.8% higher. Mohegan also reported $29.5m in finance-related expenses, leaving $52.8m in pre-tax earnings, down 16.3% on last year.

Apart from taking out $64,000 in earnings related to its non-controlling assets, the operator paid $2.2 million in taxes. Net profit was therefore $50.6m, down 14.8%.

While Mohegan said this was still the third-highest quarterly total in its 26-year history, adjusted EBITDA also dropped 9.5% to $108.7m.