New deal brings change in latitude for tribe

ATLANTIC CITY – An unusual arrangement is coming to Atlantic City: The Mohegan Indians will buy a piece of Resorts Casino Hotel and run its day-to-day affairs.

The deal centers on a $35 million expansion that will bring a Margaritaville restaurant to the casino, splashing palm trees and parrots across its facade. The casino’s existing Roaring ’20s theme, adopted to take advantage of interest in the hit HBO series “Boardwalk Empire” about Prohibition-era Atlantic City, is staying, too.

The idea is to bring new excitement – and new customers with their new money – to a casino that has struggled since nearly having to close two years ago. The alliance with the Mohegans and their well-established casinos in Connecticut and Pennsylvania should give a big boost to Resorts, which was the first casino in the United States to open outside Nevada.

“We are really excited about this,” said Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority. “It’s a win-win for everyone involved.”

The arrangement must be approved by New Jersey casino regulators. A vote has yet to be scheduled.

The deal became necessary after the sudden death of Resorts co-owner Dennis Gomes in February. A veteran of the casino industry, and the inspiration for the hit movie “Casino,” Gomes had been working to turn Resorts around from years of losses under previous ownership to bigger, newer competitors in Atlantic City and in surrounding states.

After Gomes’ death, Resorts owner Morris Bailey began discussing a marketing alliance with the Mohegans. Talks progressed quickly into a deal to have the tribe’s management arm, Mohegan Gaming Advisors, provide the experience and know-how that was missing without Gomes at the helm.

Etess is particularly proud that the Mohegans are being called on to run an established commercial casino.

“What it shows is how the gaming industry has changed, and how tribal gaming has grown,” he said. “It used to be that commercial casino companies would help tribes build and run casinos. Now it’s the other way around; things have progressed to the point where commercial casinos want us to come in and help them.”