10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

____________________________________________________________ 

FORM 10-K

____________________________________________________________ 

ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 033-80655

____________________________________________________________ 

MOHEGAN TRIBAL GAMING AUTHORITY

(Exact name of registrant as specified in its charter)

____________________________________________________________ 

Not Applicable	06-1436334
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Mohegan Sun Boulevard, Uncasville, CT	06382
(Address of principal executive offices)	(Zip Code)

(860) 862-8000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

None	None
(Title of each class)	(Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act:

None

(Title of Class)

 ____________________________________________________________ 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act:    Yes  o    No  ý

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act:    Yes  ý    No  o

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    Yes  ý    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):    Yes  ý     No  o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K:  ý

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer  o     Accelerated filer  o    Non-accelerated filer  ý    Smaller reporting company  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act):    Yes  o    No  ý

MOHEGAN TRIBAL GAMING AUTHORITY

INDEX TO FORM 10-K

		Page Number
Cautionary Note Regarding Forward-Looking Statements		1
	PART I
Item 1.	Business	2
Item 1A.	Risk Factors	22
Item 1B.	Unresolved Staff Comments	30
Item 2.	Properties	31
Item 3.	Legal Proceedings	31
Item 4.	Mine Safety Disclosures	31
	PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	32
Item 6.	Selected Financial Data	32
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	56
Item 8.	Financial Statements and Supplementary Data	56
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	57
Item 9A.	Controls and Procedures	57
Item 9B.	Other Information	58
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance	59
Item 11.	Executive Compensation	61
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	67
Item 13.	Certain Relationships and Related Transactions, and Director Independence	67
Item 14.	Principal Accounting Fees and Services	69
	PART IV
Item 15.	Exhibits, Financial Statement Schedules	70
Signatures		71
Supplemental Information		72
Index to Consolidated Financial Statements		F-1
Schedule II—Valuation and Qualifying Accounts and Reserves		S-1

References in this Annual Report on Form 10-K to the “Authority” and the “Mohegan Tribe or Tribe” are to the Mohegan Tribal Gaming Authority and the Mohegan Tribe of Indians of Connecticut, respectively. The terms “we,” “us” and “our” refer to the Authority.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Form 10-K contains statements about future events, including, without limitation, information relating to business development activities, as well as capital spending, financing sources, the effects of regulation (including gaming and tax regulation) and increased competition. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements sometimes can be identified by our use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend” and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated future results and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by us or on our behalf. You should review carefully all of the information in this Form 10-K, including the consolidated financial statements.

In addition to the risk factors described under “Part I. Item 1A. Risk Factors,” the following important factors, among others, could affect our future financial condition or results of operations, causing actual results to differ materially from those expressed in the forward-looking statements:

• the financial performance of Mohegan Sun and Mohegan Sun at Pocono Downs and our Pennsylvania off-track wagering facilities;

• the local, regional, national or global economic climate, including the lingering effects of the most recent economic recession, which negatively affected our revenues and earnings;

• increased competition, including the expansion of gaming in New England, New York, New Jersey or Pennsylvania;

• our leverage and ability to meet our debt service obligations and maintain compliance with financial debt covenants;

• the continued availability of financing;

• our dependence on existing management;

• our ability to integrate new amenities from expansions to our facilities into our current operations and manage the expanded facilities;

• changes in federal or state tax laws or the administration of such laws;

• changes in gaming laws or regulations, including the limitation, denial or suspension of licenses required under gaming laws and regulations;

• changes in applicable laws pertaining to the service of alcohol, smoking or other amenities offered at our facilities;

• our ability to successfully implement our diversification strategy;

• an act of terrorism on the United States;

• our customers' access to inexpensive transportation to our facilities and changes in oil, fuel or other transportation-related expenses; and

• unfavorable weather conditions.

These factors and the other risk factors discussed in this Form 10-K are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of the forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this Form 10-K are made only as of the date of this Form 10-K. We do not have and do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. We cannot assure you that projected results or events will be achieved or will occur.

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PART I

Item 1. Business.

Overview

The Tribe and the Authority

The Mohegan Tribe of Indians of Connecticut, or the Mohegan Tribe or the Tribe, is a federally-recognized Indian tribe with an approximately 544-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. Under the Indian Gaming Regulatory Act of 1988, or IGRA, federally-recognized Indian tribes are permitted to conduct full-scale casino gaming operations on tribal lands, subject to, among other things, the negotiation of a compact with the affected state. The Tribe and the State of Connecticut entered into a compact, the Mohegan Compact, which was approved by the United States Secretary of the Interior. We were established as an instrumentality of the Tribe, with the exclusive authority to conduct and regulate gaming activities for the Tribe on Tribal lands and the non-exclusive authority to conduct such activities elsewhere. Our gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Through our subsidiary, Downs Racing, L.P., or Downs Racing, we also own and operate Mohegan Sun at Pocono Downs, a gaming and entertainment facility located in Plains Township, Pennsylvania, and several off-track wagering facilities, or OTW facilities, located elsewhere in Pennsylvania, collectively the Pennsylvania facilities. We are governed by a nine-member Management Board, whose members also comprise the Mohegan Tribal Council, the governing body of the Tribe. Any change in the composition of the Mohegan Tribal Council results in a corresponding change in our Management Board.

Our principal executive office and mailing address is One Mohegan Sun Boulevard, Uncasville, CT 06382. Our telephone number is (860) 862-8000. Our website is www.mtga.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) under the Securities Exchange Act of 1934 are made available free of charge on our website as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission.

Mohegan Sun

In October 1996, we opened a gaming and entertainment complex known as Mohegan Sun. Mohegan Sun is located on a 185-acre site on the Tribe's reservation overlooking the Thames River with direct access from Interstate 395 and Connecticut Route 2A. Mohegan Sun is approximately 125 miles from New York City, New York, and approximately 100 miles from Boston, Massachusetts. In 2002, we completed a major expansion of Mohegan Sun known as Project Sunburst, which included increased gaming, restaurant and retail space, an entertainment arena, an approximately 1,200-room luxury Sky Hotel Tower and approximately 100,000 square feet of convention space. In 2007, we opened Sunrise Square, and, in 2008, we opened Casino of the Wind, both components of Mohegan Sun's Project Horizon expansion.

Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes the following:

Casino of the Earth

As of September 30, 2014, Casino of the Earth offered:

• approximately 188,000 square feet of gaming space;

• approximately 2,840 slot machines and 145 table games, including blackjack, roulette and craps;

• Sunrise Square, a 9,800-square-foot Asian-themed gaming area;

• an approximately 9,000-square-foot simulcasting Racebook facility;

• food and beverage amenities, including: Seasons Buffet, a 784-seat multi-station buffet with live cooking stations, a Hong Kong-style food outlet offering authentic Southeast Asian cuisine, Bobby Flay's Bobby's Burger Palace, Bow & Arrow Sports Bar and multiple service bars, all operated by us, as well as Ballo Italian Restaurant & Social Club, Frank Pepe Pizzeria Napoletana, Hash House a Go Go and Fidelia's Market, an approximately 290-seat multi-station food court, operated by third-parties, for a total restaurant seating of approximately 2,125;

• four Mohegan Sun-owned retail shops, offering products ranging from Mohegan Sun logo souvenirs to cigars; and

• the Wolf Den, an approximately 10,000-square-foot, 400-seat lounge featuring live entertainment seven days a week.

Casino of the Sky

As of September 30, 2014, Casino of the Sky offered:

• approximately 119,000 square feet of gaming space;

• approximately 2,025 slot machines and 105 table games, including blackjack, roulette and craps;

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• food and beverage amenities, including: Todd English's Tuscany, Bobby Flay's Bar Americain, a 24-hour coffee shop and three lounges and bars, all operated by us, as well as five full-service restaurants, three quick-service restaurants and a multi-station food court operated by third-parties, for a total restaurant seating of approximately 2,295;

• The Shops at Mohegan Sun containing 32 retail shops, six of which we own;

• the Mohegan Sun Arena with seating for up to 10,000;

• a 350-seat Cabaret theatre;

• an approximately 1,200-room luxury Sky Hotel Tower, including a private high-limit table games suite;

• Lansdowne Irish Pub and Music House, Avalon Nightclub and Vista Lounge, all operated by a third-party;

• an approximately 20,000-square-foot spa operated by a third-party;

• approximately 100,000 square feet of convention space; and

• a child care facility and an arcade-style entertainment area operated by a third-party.

Casino of the Wind

As of September 30, 2014, Casino of the Wind offered:

• approximately 45,000 square feet of gaming space;

• approximately 525 slot machines, 25 table games, including blackjack, roulette and craps, and a 42-table themed poker room;

• food and beverage amenities, including: a two-level, 16,000-square-foot Jimmy Buffett's Margaritaville Restaurant and a casual dining restaurant operated by third-parties, for a total restaurant seating of approximately 475;

• Mist, a nightlife entertainment venue operated by us; and

• a retail shop operated by a third-party.

Mohegan Sun offers parking for approximately 13,000 patrons and 3,900 employees. We also operate an approximately 3,600-square-foot, 20-pump gasoline and convenience center for patrons, as well as a 10-pump gasoline center for employees, both located adjacent to Mohegan Sun. In addition, Mohegan Sun is a CT Lottery retailer.

Connecticut Sun

Through Mohegan Basketball Club, LLC, or MBC, we own and operate the Connecticut Sun franchise, a professional basketball team in the Women's National Basketball Association. The team plays its home games in the Mohegan Sun Arena.

Mohegan Sun Golf Club

Through Mohegan Golf, LLC, or Mohegan Golf, we own and operate the Mohegan Sun Golf Club, a private 18-hole championship golf course, restaurant and bar located in Sprague and Franklin, Connecticut.

Mohegan Sun at Pocono Downs

Through Downs Racing, we own and operate a gaming and entertainment facility known as Mohegan Sun at Pocono Downs located on a 400-acre site in Plains Township, Pennsylvania, and OTW facilities located in Carbondale, East Stroudsburg and Lehigh Valley, Pennsylvania. In November 2006, Mohegan Sun at Pocono Downs became the first location to offer slot machine gaming in the Commonwealth of Pennsylvania when Phase I of its gaming and entertainment facility opened. In July 2008, we completed a major expansion of Mohegan Sun at Pocono Downs known as Project Sunrise, which included increased gaming, restaurant and retail space, and, in July 2010, we opened our table game and poker operations, including additional non-smoking sections and a high-limit gaming area. We recently completed Project Sunlight, a hotel and convention center expansion located adjacent to the Mohegan Sun at Pocono Downs casino.

Mohegan Sun at Pocono Downs currently operates in an approximately 400,000-square-foot facility, which includes the following as of September 30, 2014:

• approximately 82,000 square feet of gaming space;

• approximately 2,330 slot machines, 70 table games, including blackjack, roulette and craps, and an 18-table poker room;

• live harness racing and simulcast and off-track wagering;

• a 238-room hotel;

• approximately 20,000 square feet of convention space;

• food and beverage amenities, including: Ruth's Chris Steakhouse, Rustic Kitchen Bistro and Bar, which features dining and a live cooking show, Bar Louie, a casual bar and restaurant, Timbers Buffet, a 300-seat Mohegan Indian cultural heritage themed multi-station buffet, and a food court, including: Johnny Rockets, Wok 8, Puck Express by Wolfgang Puck and Ben & Jerry's Ice Cream, for a total seating of approximately 1,800;

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• four retail shops, one of which we own, offering products ranging from Mohegan Sun at Pocono Downs logo souvenirs to fine apparel; and

• three bars/lounges: Sunburst Bar, featured in the center of the gaming floor, Breakers Night Club and Pearl Sushi Bar.

Project Sunlight

Project Sunlight, a $50 million hotel expansion project located adjacent to the Mohegan Sun at Pocono Downs casino, opened to the public on November 15, 2013. This expansion includes a 238-room hotel and an approximately 20,000-square-foot convention center. The hotel is comprised of a combination of standard guest rooms and suites and features rooms with exclusive views of the race track, as well as a fitness center and an indoor pool and spa. A new porte-cochere also was added for additional guest convenience. The convention center is located adjacent to the hotel and can accommodate a number of different sized groups, including up to 800 for seated banquets. This space also can be converted into a 1,500-seat concert venue.

Recent Developments

On November 20, 2014, we furnished a Current Report on Form 8-K which included a press release announcing our consolidated operating results for our fourth fiscal quarter ended September 30, 2014. The accompanying consolidated statement of loss for the fiscal year ended September 30, 2014 differs from the consolidated statement of loss for the fiscal year ended September 30, 2014 included in the earnings press release, primarily to reflect the effect of the refinement of the impairment of Project Horizon based upon updated hotel plans obtained subsequent to the issuance of the earnings press release. The effect of the refinement of the impairment of Project Horizon to the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014 was increased operating expenses which resulted in a $3.6 million increase in our consolidated net loss for the fiscal year ended September 30, 2014.

Strategy

Our overall strategy is to profit from gaming in our core markets, as well as to diversify the Tribe’s business interests within the gaming industry. Mohegan Sun primarily receives patronage from guests residing within 100 miles of Mohegan Sun, which represents our primary market. Mohegan Sun also receives patronage from guests residing within a 100 to 200 mile radius, which represents our secondary market. With the completion of Project Sunburst in 2002, we have developed Mohegan Sun into a full-scale entertainment and destination resort. The addition of Casino of the Wind and Sunrise Square further strengthens our presence in the Northeast United States gaming market. We also have taken significant steps in our diversification efforts with the addition of our Mohegan Sun at Pocono Downs operations and joint venture and management arrangement with the owner of Resorts Casino Hotel in Atlantic City, New Jersey.

Diversification

The Tribe has determined that it is in its best interest to pursue diversification of its business interests, both directly and through us. As a result, from time to time, we and the Tribe pursue various business opportunities. These opportunities primarily include proposed development and/or management of, investment in or ownership of additional gaming operations through direct investments, acquisitions, joint venture arrangements and loan or financial/credit support transactions. In addition to the pursuits described below, we and the Tribe are currently exploring other opportunities; however we can provide no assurance that we or the Tribe will continue to pursue any of these opportunities or that any of them will be consummated.

Management of Resorts Casino Hotel

In 2012, we formed Mohegan Gaming Advisors, LLC, or Mohegan Gaming Advisors, as our wholly-owned unrestricted subsidiary, to pursue gaming opportunities outside the State of Connecticut, including management contracts and consulting agreements for casino and entertainment properties in the United States. Mohegan Gaming Advisors holds 100% membership interests in MGA Holding NJ, LLC and MGA Gaming NJ, LLC, or collectively, the Mohegan New Jersey entities. The Mohegan New Jersey entities were formed to pursue management contracts and consulting agreements in the State of New Jersey. In October 2012, Mohegan Gaming Advisors, through the Mohegan New Jersey entities, entered into a joint venture and management arrangement with the owner of Resorts Casino Hotel in Atlantic City, New Jersey, pursuant to which it is managing the facility.

Cowlitz Project

In July 2004, we formed Mohegan Ventures-Northwest, LLC, or Mohegan Ventures-NW, as our wholly-owned unrestricted subsidiary. Mohegan Ventures-NW is one of three current members in Salishan-Mohegan, LLC, or Salishan-Mohegan, which was formed to participate in the Cowlitz Project, a proposed casino to be owned by the Cowlitz Tribe and to be located in Clark County, Washington. Mohegan Ventures-NW, Salishan Company, LLC, an unrelated entity, and a subsidiary of the Tribe hold membership interests in Salishan-Mohegan of 49.15%, 40% and 10.85%, respectively.

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In September 2004, Salishan-Mohegan entered into development and management agreements with the Cowlitz Tribe in connection with the Cowlitz Project, which agreements have been amended from time to time. Under the terms of the development agreement, Salishan-Mohegan will assist in securing financing, as well as administer and oversee the planning, designing, development, construction and furnishing of the proposed casino. The development agreement provides for development fees of 3% of total project costs, as defined under the development agreement. Under the terms of Salishan-Mohegan's operating agreement, development fees will be distributed to Mohegan Ventures-NW. In 2006, Salishan-Mohegan purchased a 152-acre site for the proposed casino, which will be transferred to the Cowlitz Tribe or the United States pursuant to the development agreement. Development of the Cowlitz Project is subject to certain governmental and regulatory approvals and agreements, including, but not limited to, a gaming compact with the State of Washington and acceptance of land into trust on behalf of the Cowlitz Tribe by the United States Department of the Interior. The development agreement provides for termination of Salishan-Mohegan’s exclusive development rights if the land is not taken into trust by December 31, 2020. Under the terms of the management agreement, Salishan-Mohegan will manage, operate and maintain the proposed casino for a period of seven years following its opening. The management agreement provides for management fees of 24% of net revenues, as defined under the management agreement, which approximates net income earned from the Cowlitz Project. Under the terms of Salishan-Mohegan's operating agreement, management fees will be allocated to the members of Salishan-Mohegan based on their respective membership interest. The management agreement is subject to approval by the National Indian Gaming Commission, or the NIGC. On August 7, 2014, the Cowlitz Tribe’s Class III Tribal-State gaming compact with the State of Washington became effective with notice of federal approval published in the Federal Register. According to the notice, the compact allows for two gaming facilities, allocates 975 gaming machines for leasing, authorizes the operation of up to 3,000 gaming machines and 125 table games, and is in effect until terminated by written agreement of both parties.

Under the terms of the development agreement, certain receivables contributed to Salishan-Mohegan and amounts advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe are reimbursable to Salishan-Mohegan by the Cowlitz Tribe, subject to appropriate approvals defined under the development agreement. Reimbursements are contingent and are to be distributed upon: (1) the receipt of necessary financing for the development of the proposed casino and (2) the related property being taken into trust by the United States Department of the Interior. We currently accrue interest on the Salishan-Mohegan receivables at an annual rate of 10.0%.

In March 2013, two lawsuits challenging a December 2010 decision of the Assistant Secretary - Indian Affairs of the Department of the Interior to take the 152-acre Cowlitz Project site into trust were dismissed on procedural grounds. In April 2013, pursuant to judicial directive, the Department of the Interior issued a new Record of Decision to take the Cowlitz Project site into trust, determining once again that the site will serve as the initial reservation of the Cowlitz Tribe and that the tribe may conduct gaming on such lands under the Indian Gaming Regulatory Act. In June 2013, the plaintiffs in the earlier litigation filed two new lawsuits challenging the new Record of Decision, and, in July 2013, those lawsuits were consolidated. By Notice of Trust Acquisition filed with the court on October 22, 2014, while motions for summary judgment filed by the plaintiffs and the defendants were pending, the federal defendants provided the court notice of the United States Department of the Interior's planned trust acquisition of the Cowlitz Project site, which was the subject of the litigation, on the earlier of: (1) January 21, 2015 and (2) 30 days after a court order granting summary judgment in favor of the federal defendants. On December 12, 2014, a U.S. District Court for the District of Columbia judge entered an order granting summary judgment in favor of the federal defendants, thereby upholding the Record of Decision and denying the federal plaintiffs’ motion. On December 18, 2014, one of the federal plaintiffs, the Confederated Tribes of the Grand Ronde Community of Oregon, filed notice of an appeal of that order to the Court of Appeals for the District of Columbia Circuit. We can provide no assurance as to the outcome of this appeal or any future litigation or that the remaining steps and conditions for the Cowlitz Project site to be taken into trust for gaming will be satisfied or that necessary financing for the development of the proposed casino will be obtained.

Market and Competition from Other Gaming Operations

Our gaming operation at Mohegan Sun is one of only two current gaming operations in southern New England offering traditional slot machines and table games, with the other operation being our sole gaming competitor in the State of Connecticut, Foxwoods Resort Casino, or Foxwoods. Foxwoods is owned by the Mashantucket Pequot Tribe, or the MPT. As required by each tribe's separate Memorandum of Understanding, or MOU, with the State of Connecticut, the Tribe and the MPT make monthly contribution payments to the state based on a portion of revenues earned on slot machines. Pursuant to the terms of an exclusivity clause in each MOU, contribution payments to the state will terminate if there is any change in state law that permits operation of slot machines or other commercial casino games or if any other person lawfully operates slot machines or other commercial casino games within the State of Connecticut, except those consented to by the Tribe and the MPT. We also face competition from gaming facilities in the states of Rhode Island, New York and New Jersey. In addition, we face competition in and from the Northeastern Pennsylvania gaming market.

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We also face potential competition from the future expansion of state-licensed gaming in New England, New York and the Northeastern United States, as well as prospective gaming projects under consideration by Indian tribes, including federally-recognized tribes in the State of New York. With the recent addition of table gaming in the states of Rhode Island, Maine, Pennsylvania and Delaware, commercial casino gaming has expanded in the Northeastern United States and is poised to expand further with the licensing of two of three authorized casino resort facilities and one slot-only facility in the Commonwealth of Massachusetts and the selection of three locations in upstate New York for three proposed full-scale casino projects, as well as the authorization of video lottery terminals, or VLTs, at the two off-track wagering facilities in Nassau and Suffolk counties. Tribal gaming projects being pursued by the Mashpee Wampanoag Tribe and Aquinnah Wampanoag Tribe, both located in Massachusetts, and the Shinnecock Indian Nation of New York also increase the possibility of new tribal gaming in the Northeastern United States in the future. In addition, other federally-recognized Indian tribes continue to pursue new gaming projects elsewhere in the Northeastern United States. Under federal law, subsequent to obtaining federal recognition, Indian tribes are subject to certain governmental and regulatory approvals before commencing full-scale gaming operations, including, but not limited to: (1) negotiation and federal approval of a gaming compact with the affected state, (2) acceptance of land into trust by the United States Department of the Interior and (3) federal approval of a tribal gaming ordinance. Indian tribes also may need to negotiate a management agreement and obtain financing to construct a facility. Additionally, groups seeking federal recognition as Indian tribes, as well as federally-recognized Indian tribes, continue efforts to establish or expand reservation lands with an interest in commercial casino gaming on such lands.

We are unable to predict whether changes in federal recognition rules or efforts by federally-recognized Indian tribes or groups seeking federal recognition as Indian tribes will lead to the establishment of additional tribal casino gaming operations in the Northeastern United States. We also are unable to predict whether or when additional commercial casino gaming operations in the Northeastern United States will open. If established, we are uncertain of the impact such casino gaming operations will have on our operations.

Mohegan Sun

The following is a summary of competition affecting Mohegan Sun:

Connecticut

The Tribe’s and the MPT's gaming operations at Mohegan Sun and Foxwoods, respectively, are the only two legally authorized gaming operations in Southern New England offering traditional slot machines and table games. Foxwoods is located approximately 10 miles from Mohegan Sun and reportedly offers approximately 5,800 slot machines and 450 table games, including poker.Foxwoods will be adding a new outlet retail mall to its amenities in mid-2015 which could impact competition in the State of Connecticut.

In July 2013, the MPT reportedly completed a planned restructuring of approximately $2.3 billion of its debt obligations, with approximately $550 million in debt reportedly eliminated. In August 2014, it was reported that the MPT had violated current debt covenants and was in discussions with senior lenders regarding its options.

Rhode Island

The state's two pari-mutuel facilities, Twin River Casino in Lincoln and Newport Grand in Newport, located approximately 60 miles and 55 miles from Mohegan Sun, respectively, reportedly offer approximately 5,600 VLTs, including electronic table game positions. In addition, Twin River Casino reportedly offers approximately 80 table games. In November 2014, a ballot measure to allow table games at Newport Grand passed state-wide, but a required companion measure failed in the City of Newport, thereby defeating the proposed addition of table gaming at Newport Grand.

Massachusetts

In 2011, the Commonwealth of Massachusetts enacted legislation which authorized one slot-only license limited to 1,250 slot machines and up to three casino resort licenses. Penn National Gaming was awarded the slot-only license and reportedly plans to open Plainridge Park Casino in Plainville in June 2015. Each of the three casino resort licenses is restricted to one of three geographic regions of the state: eastern or Boston region, western Massachusetts and southeast region. In November 2014, following the defeat of a ballot question which would have repealed the 2011 legislation, two of the three casino resort licenses were awarded to affiliates of MGM Resorts International and Wynn Resorts Limited. The cities of Revere and Somerville have filed lawsuits challenging the licensing of Wynn Resorts Limited's project in Everett. Applications for the third license are due in 2015.

Maine

Hollywood Casino Bangor in Bangor and Oxford Casino in Oxford are the only two gaming operations in the State of Maine. These two facilities reportedly offer approximately 1,800 slot machines and 40 table games.

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New York

Racinos in Yonkers, Queens, Batavia, Hamburg, Nichols, Vernon, Monticello, Saratoga Springs and Farmington reportedly offer approximately 18,000 VLTs, including electronic table game positions. Approximately 10,300 of these VLTs are operated at the two racinos located in or close to New York City - Empire City Casino at Yonkers Raceway in Yonkers, or Empire City, and Resorts World New York in Queens, or Resorts World. Given Empire City's and Resorts World's location in or near New York City, each has a distinct advantage over Mohegan Sun in competing for patrons from the New York metropolitan region.

There are eight federally-recognized Indian tribes in the State of New York. Only three of these federally-recognized Indian tribes, the Oneida Nation of New York, or the Oneida Nation, the Seneca Nation of New York, or the Seneca Nation, and the St. Regis Band of Mohawk Indians of New York, or the St. Regis Mohawk Tribe, currently engage in commercial casino gaming. However, it has been reported that the Shinnecock Indian Nation of New York is considering various sites on or near Long Island for a potential reservation and casino. In addition, several other New York Indian tribes and at least two Indian tribes based in the State of Wisconsin have been pursuing potential gaming projects in the State of New York which, if completed, would add significant gaming space, as well as hotel capacity to the Northeastern United States gaming market.

In 2001, the state legislature passed legislation permitting as many as six new gaming operations by Indian tribes, in addition to those then operated by the Oneida Nation, Seneca Nation and the St. Regis Mohawk Tribe. Under this legislation, three additional gaming operations may be owned and operated by the Seneca Nation, while the remaining three tribal gaming operations may be located in either Ulster County or Sullivan County in the Catskills region of the state, but have not received federal or final state approval to date. The State of New York had reached tentative land claim settlements with various Indian tribes and introduced legislation for as many as five tribal commercial casinos to be located in the Catskills region since that law was first adopted in 2001. However, a 2005 United States Supreme Court decision regarding tribal jurisdiction over Indian tribal lands not held in trust by the United States and subsequent federal court decisions led to the withdrawal of these land claim settlement agreements.

The following is a summary of current gaming operations by federally-recognized Indian tribes in the State of New York:

• The Oneida Nation-The Oneida Nation operates Turning Stone Resort Casino in Verona, approximately 270 miles from Mohegan Sun.

• The St. Regis Mohawk Tribe-The St. Regis Mohawk Tribe operates Akwesasne Mohawk Casino in Hogansburg and Mohawk Bingo Palace in Akwesasne, each approximately 400 miles from Mohegan Sun.

• The Seneca Nation-The Seneca Nation operates three casinos in the western region of the state more than 400 miles from Mohegan Sun.

In November 2013, the State of New York's constitution was amended to permit up to seven casinos state-wide as authorized and prescribed by the state legislature. As a result, the state’s Gaming Commission continues to implement the Upstate New York Gaming Economic Development Act, which was adopted in June 2013. Pursuant to this act, the Gaming Commission is responsible for licensing up to four full-scale casinos in three designated upstate New York regions, excluding New York City and nearby counties for the first seven years. Under existing statute, after seven years, three additional casinos may be licensed within the state, excluding New York City, Westchester, Rockland, Nassau or Suffolk counties. In addition, two off-track wagering facilities in Nassau and Suffolk counties are each allowed to add up to 1,000 VLTs. On December 17, 2014, the New York Gaming Facility Location Board, which was responsible for making licensing recommendations to the state's Gaming Commission for up to four full-scale casinos in three designated upstate New York regions, made its recommendations for a total of three full-scale casinos, one in each of the designated regions. The New York Gaming Facility Location Board recommended the licensing of Montreign Resort Casino in Thompson for the Catskill/Hudson Valley region, Rivers Casino and Resort in Schenectady for the Capital region and Lago Casino in Tyre for the Eastern Southern Tier region.

New Jersey

The Atlantic City gaming market consists of eight gaming properties which reportedly offer approximately 17,500 slot machines and 1,300 table games. The State of New Jersey and the Atlantic City gaming market continue to implement legislative reforms adopted in 2011 and public-private initiatives to revitalize gaming in the state. In November 2013, five of the state's casino operators and an Internet gaming licensee on behalf of a sixth casino operator commenced Internet gaming for patrons located within the State of New Jersey. The state also has passed legislation related to sports wagering and is involved in litigation challenging the federal law which restricts legalized sports wagering to certain states.

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Mohegan Sun at Pocono Downs

The following is a summary of competition affecting Mohegan Sun at Pocono Downs:

In 2004, the Commonwealth of Pennsylvania passed the Pennsylvania Race Horse Development and Gaming Act, or the Pennsylvania Gaming Act, which permitted the operation of up to 61,000 slot machines at 14 locations throughout the state, 12 of which have commenced operations. In November 2014, the 13^th casino license which permits the operation of 5,000 slot machines and 250 table games was awarded to Live! Hotel and Casino, a joint venture between Cordish Cos. and Greenwood Gaming and Entertainment Inc. Live! Hotel and Casino will be located in the City of Philadelphia's stadium district.

In addition, the Pennsylvania Gaming Act authorized the operation of up to 500 slot machines at two resort facilities, one of which has commenced operations. The Pennsylvania Gaming Act also includes prohibitions against locating facilities within close proximity to other operations, which, among other things, effectively prohibits locating a slot machine facility within twenty miles of Mohegan Sun at Pocono Downs or a resort facility within fifteen miles of Mohegan Sun at Pocono Downs. In 2010, the Pennsylvania Gaming Act was amended to allow slot machine operators in the Commonwealth of Pennsylvania to operate table games. The amendment also authorized that the second resort facility license be awarded by 2017 and prohibits the facility from being located within thirty miles of Mohegan Sun at Pocono Downs. In addition, the amendment increased the number of slot machines permitted at the two resort facilities from 500 to 600 and restricted the number of table games at such facilities to 50. All slot machine facilities in operation in the state have added table game operations.

Mohegan Sun at Pocono Downs faces competition from several facilities in the Commonwealth of Pennsylvania, as well as neighboring states. However, its most immediate competitors are Mount Airy Casino Resort, or Mount Airy, and Sands Casino Resort Bethlehem, or Sands Bethlehem, both of which are located in Northeastern Pennsylvania:

• Mount Airy-Mount Airy is located approximately 40 miles from Mohegan Sun at Pocono Downs and reportedly offers approximately 1,900 slot machines and 80 table games.

• Sands Bethlehem-Sands Bethlehem is located approximately 70 miles from Mohegan Sun at Pocono Downs and reportedly offers approximately 3,000 slot machines and 200 table games.

In addition to existing slot machine and table game operations in the Commonwealth of Pennsylvania, Mohegan Sun at Pocono Downs faces existing competition from a VLT facility at the Monticello Raceway in Monticello, New York, approximately 90 miles from Mohegan Sun at Pocono Downs, as well as future competition from the proposed Montreign Resort Casino in Thompson, New York, which will be owned and operated by the same operator of the VLT facility at the Monticello Raceway and located approximately 175 miles from Mohegan Sun at Pocono Downs. Mohegan Sun at Pocono Downs also faces competition from Tioga Downs Casino in Nichols, New York, approximately 100 miles from Mohegan Sun at Pocono Downs.

Mohegan Tribe of Indians of Connecticut

General

The Tribe has lived in a cohesive community for hundreds of years in what is today southeastern Connecticut. The Tribe became a federally-recognized Indian tribe in 1994 and currently has approximately 2,030 members, of which approximately 1,275 are of voting age. The Tribe historically has cooperated with the United States and is proud of the fact that members of the Tribe have fought on the side of the United States in every war from the Revolutionary War to the wars in Iraq and Afghanistan. The Tribe believes that this philosophy of cooperation exemplifies its approach of developing Mohegan Sun and pursuing diversification of its business interests.

Although the Tribe is a sovereign entity, it has sought to work with, and to gain the support of, local communities. For example, the Tribe settled its claim to extensive tracts of land that had been guaranteed by various treaties in consideration for certain arrangements in the Mohegan Compact. As a result, local residents and businesses whose property values had been clouded by this dispute were able to gain clear title to their property. In addition, the Tribe has been sensitive to the concerns of the local community in developing Mohegan Sun. This philosophy of cooperation has enabled the Tribe to build a solid alliance among local, state and federal officials to achieve its goal of economic development through the success of Mohegan Sun and its other projects.

Governance of the Tribe

The Tribe's Constitution provides for the governance of the Tribe by a Tribal Council, consisting of nine members, and a Council of Elders, consisting of seven members. The registered voters of the Tribe elect all members of the Council of Elders and the Mohegan Tribal Council. Pursuant to an amendment to the Tribe's Constitution in September 2003, the members of both the Council of Elders and the Mohegan Tribal Council are elected on a four-year staggered term basis. The terms for four members of the Council of Elders expire in October 2016, while the terms for the remaining three members expire in October 2018. The terms for four members of the Mohegan Tribal Council expire in October 2015, while the terms for the remaining five members

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expire in October 2017. Members of the Council of Elders must be at least 55 years of age when elected, while members of the Mohegan Tribal Council must be at least 21 years of age when elected. The members of the Mohegan Tribal Council also serve as members and officers on our Management Board.

The Tribe's Constitution vests all legislative and executive powers of the Tribe in the Mohegan Tribal Council, with the exception of enrollment of Tribal members and cultural duties, which are vested in the Council of Elders. The powers of the Mohegan Tribal Council include the power to establish an executive branch departmental structure with agencies and subdivisions and to delegate appropriate powers to such agencies and sub-divisions.

The Tribe may amend provisions of its Constitution that established us and the Gaming Disputes Court, which is described below. Such an amendment requires the approval of two-thirds of the members of the Mohegan Tribal Council and must be ratified by registered voters of the Tribe by a two-thirds majority of all votes cast, with at least a 40% participation of registered voters of the Tribe. In addition, the Tribe's Constitution currently prohibits the Tribe from enacting any law that would impair the obligations of contracts entered into in furtherance of the development, construction, operation and promotion of gaming on Tribal lands. An amendment to this provision requires the affirmative vote of 75% of registered voters of the Tribe. Prior to the enactment of any such amendment by the Mohegan Tribal Council, any non-Tribal party would have the opportunity to seek a ruling from the Appellate Branch of the Gaming Disputes Court that the proposed amendment would constitute an impermissible impairment of contract.

The Council of Elders acts in the capacity of an appellate court of final review and may hear appeals of any case or controversy arising under the Tribe's Constitution, except those matters related to Mohegan Sun, which are required to be submitted to the Gaming Disputes Court.

Gaming Disputes Court

Under the Constitution and laws of the Tribe, the Gaming Disputes Court is vested with exclusive jurisdiction over all disputes related to gaming and associated facilities on Tribal lands, including appeals from certain final administrative agency decisions. The Gaming Disputes Court is composed of a Trial Branch and an Appellate Branch. Cases tried in the Trial Branch are heard by a single judge, whose decision can be appealed to the Appellate Branch. Appeals are decided by a panel of three judges, consisting of a Chief Judge and two judges selected in rotation. A judge whose decision is on appeal may not serve on the appellate panel. Decisions of the Appellate Branch are final and no further appeal is available.

The Gaming Disputes Court has jurisdiction over all disputes or controversies related to gaming between any person or entity and us or the Tribe. The Gaming Disputes Court also has jurisdiction over certain appeals arising out of tribal agency regulatory powers, including licensing actions. The Tribe has adopted the substantive law of the State of Connecticut as the applicable law of the Gaming Disputes Court to the extent that such law is not in conflict with Mohegan Tribal Law. Also, the Tribe has adopted all of Connecticut's rules of civil and appellate procedure and professional and judicial conduct to govern the Gaming Disputes Court.

Judges of the Gaming Disputes Court are chosen by the Mohegan Tribal Council from a publicly available list of eligible retired federal judges and Connecticut Attorney Trial Referees, who are appointed by the Chief Justice of the Connecticut Supreme Court, each of whom must remain licensed to practice law in the State of Connecticut.

Judges are selected sequentially as cases are filed with the clerk of the Gaming Disputes Court. The Chief Judge of the Gaming Disputes Court, who serves as the Gaming Disputes Court's administrative superintendent, is chosen by the Mohegan Tribal Council from the list of eligible judges and serves a five-year term. The remaining judges may serve an unlimited term on the bench. Judges of the Gaming Disputes Court are subject to discipline and removal for cause pursuant to the rules of the Gaming Disputes Court. The Chief Judge is vested with the sole authority to revise the rules of the Gaming Disputes Court. Judges are compensated by the Tribe at an agreed rate of pay commensurate with their duties and responsibilities. Such rate cannot be diminished during a judge's tenure.

Below is a description of certain information regarding judges currently serving on the Gaming Disputes Court:

Paul M. Guernsey, Chief Judge. Age: 64. Judge Guernsey has served on the Gaming Disputes Court since 1996. He was appointed Acting Chief Judge in November 1999 and Chief Judge in January 2000. Judge Guernsey also served as Fact Finder for the New London Judicial District from 1990 to 1992 and as State of Connecticut Attorney Trial Referee, Judicial District of New London, since 1992.

F. Owen Eagan, Judge. Age: 84. Judge Eagan was appointed to the Gaming Disputes Court in 1996. He served as United States Magistrate Judge from 1975 to 1996 and was formerly Assistant United States Attorney for the District of Connecticut and United States Attorney for the District of Connecticut. He also served as an adjunct law faculty member at Western New England College School of Law.

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Frank A. Manfredi, Judge. Age: 63. Judge Manfredi was appointed to the Gaming Disputes Court in 2001. He has been a partner at Cotter, Greenfield, Manfredi & Lanes, P.C., since 1983. Judge Manfredi also has served as State of Connecticut Attorney Trial Referee since 1993, State of Connecticut Attorney Fact Finder since 1992 and Town Attorney for the Town of Preston since 1988.

Jeffrey A. McNamara, Judge. Age: 55. Judge McNamara was appointed to the Gaming Disputes Court in 2012. He has served as a Probate Judge for the Niantic Regional Probate Court since 2010 and had been a Probate Judge for the District of East Lyme from 1988 to 2010. Judge McNamara has also served as a State of Connecticut Attorney Trial Referee for the Judicial District of New London since 2011. Judge McNamara has been a member of the Executive Committee for Probate Administration since 2009.

Workers' Compensation Department

Effective September 1, 2004, the Mohegan Tribal Council established a Workers' Compensation Department to oversee a self-administered workers' compensation program for employees of the Tribe and us, excluding employees of Mohegan Sun at Pocono Downs. Prior to the formation of this department, we participated in the State of Connecticut workers' compensation program. Duties of the Workers' Compensation Department, including judgment on claims, are performed by two commissioners retained by the Tribe.

Below is a description of certain information regarding the commissioners serving in the Workers' Compensation Department:

Giancarlo Rossi, Chief Commissioner. Age: 65. Mr. Rossi was appointed Chief Commissioner of the Workers' Compensation Department in September 2004. Mr. Rossi is a practicing attorney with over 20 years of workers' compensation experience in the State of Connecticut.

Louis M. Pacelli, Commissioner. Age: 60. Mr. Pacelli was appointed Commissioner of the Workers' Compensation Department in September 2004. Mr. Pacelli is a partner in the law firm of Grillo and Pacelli, LLC and has practiced general law, including workers' compensation matters, for over 20 years in the State of Connecticut.

Mohegan Tribal Gaming Authority

We were established by the Tribe in July 1995 with the exclusive authority to conduct and regulate gaming activities for the Tribe on Tribal lands and the non-exclusive authority to conduct such activities elsewhere. We are governed by a nine-member Management Board, whose members also comprise the Mohegan Tribal Council, the governing body of the Tribe. Any change in the composition of the Mohegan Tribal Council results in a corresponding change in our Management Board. See “Mohegan Tribe of Indians of Connecticut” and “Part III. Item 10. Directors, Executive Officers and Corporate Governance.”

We have three major functions. The first function is to direct the operation, management and promotion of gaming enterprises and all related activities on tribal lands. The second function is to regulate gaming activities on tribal lands. Our Management Board has appointed an independent Director of Regulation responsible for the regulation of gaming activities at Mohegan Sun. The Director of Regulation serves at the will of the Management Board and ensures the integrity of gaming operation through the promulgation and enforcement of appropriate regulations. The Director of Regulation and his staff also are responsible for performing background investigations and licensing of non-gaming employees, as well as vendors seeking to provide non-gaming products or services within the casino. Pursuant to the Mohegan Compact, the State of Connecticut is responsible for performing background investigations and licensing of gaming employees, as well as gaming vendors seeking to provide gaming products or services within the casino. The third function is to identify and evaluate various diversification opportunities in conjunction with the Tribe. These opportunities primarily include the development and/or management, ownership or investment in other gaming enterprises through direct investments, acquisitions, joint venture arrangements and loan transactions.

Government Regulation

General

Our operations at Mohegan Sun are subject to certain federal, state and tribal laws applicable to both general commercial relationships with Indians and specific to Indian gaming and the management and financing of Indian casinos. Our operations at Mohegan Sun at Pocono Downs also are subject to Pennsylvania laws and regulations applicable to harness racing, simulcasting, slot machine and table gaming. The following description of the regulatory environment in which gaming takes place and in which we operate is only a summary and not a complete recitation of all applicable law. Moreover, since this regulatory environment is susceptible to changes in public policy considerations, it is impossible to predict how particular provisions will be interpreted, from time to time, or whether they will remain intact. Changes in such laws could have a material adverse impact on our operations. See “Risk Factors.”

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Tribal Law and Legal Systems

Applicability of State and Federal Law

Federally-recognized Indian tribes are independent governments, subordinate to the United States, with sovereign powers, except as those powers may have been limited by treaty or by Congress. The power of Indian tribes to enact their own laws to regulate gaming derives from the exercise of this tribal sovereignty. Indian tribes maintain their own governmental systems and often their own judicial systems. Indian tribes have the right to tax persons and enterprises conducting business on tribal lands, and also have the right to require licenses and to impose other forms of regulations and regulatory fees on persons and businesses operating on their lands.

Absent the consent of the Tribe or action of Congress, the laws of the State of Connecticut do not apply to us or the Tribe. Pursuant to the federal law that settled the Tribe's land claims in 1994, the United States and the Tribe consented to, among other things, the extension of Connecticut criminal law and Connecticut state traffic controls over Mohegan Sun.

Waiver of Sovereign Immunity; Jurisdiction; Exhaustion of Tribal Remedies

Indian tribes enjoy sovereign immunity from unconsented suit similar to that of the states and the United States. In order to sue an Indian tribe (or an agency or instrumentality of an Indian tribe, such as us), the Tribe must have effectively waived its sovereign immunity with respect to the matter in dispute. Further, in most commercial disputes with Indian tribes, the jurisdiction of the federal courts, which are courts of limited jurisdiction, may be difficult or impossible to obtain. A commercial dispute is unlikely to present a federal question, and some courts have ruled that an Indian tribe as a party is not a citizen of any state for purposes of establishing diversity jurisdiction in the federal courts. State courts also may lack jurisdiction over suits brought by non-Indians against Indian tribes in the State of Connecticut. The remedies available against an Indian tribe also depend, at least in part, upon the rules of comity requiring initial exhaustion of remedies in tribal tribunals and, as to some judicial remedies, the tribe's consent to jurisdictional provisions contained in the disputed agreements. The U.S. Supreme Court has held that, where a tribal court exists, jurisdiction in that forum first must be exhausted before any dispute can be heard properly by federal courts which otherwise would have jurisdiction. Where a dispute as to the jurisdiction of the tribal forum exists, the tribal court first must rule as to the limits of its own jurisdiction.

In connection with certain of our contractual arrangements, including substantially all of our outstanding indebtedness, we, the Tribe, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and to the extent applicable, Mohegan Commercial Ventures-PA, LLC, Downs Racing, Backside, L.P., Mill Creek Land, L.P. and Northeast Concessions, L.P., or collectively the Pocono Downs subsidiaries, MTGA Gaming and certain of our subsidiaries and entities have agreed to waive our and their respective sovereign immunity from unconsented suit to permit any court of competent jurisdiction to: (1) enforce and interpret the terms of our applicable outstanding indebtedness, and award and enforce the award of damages owing as a consequence of a breach thereof, whether such award is the product of litigation, administrative proceedings, or arbitration, (2) determine whether any consent or approval of the Tribe or us has been granted improperly or withheld unreasonably, (3) enforce any judgment prohibiting the Tribe or us from taking any action, or mandating or obligating the Tribe or us to take any action, including a judgment compelling the Tribe or us to submit to binding arbitration and (4) adjudicate any claim under the Indian Civil Rights Act of 1968, 25 U.S.C. § 1302 (or any successor statute).

The Indian Gaming Regulatory Act of 1988

Regulatory Authority

The operation of casinos and gaming on Indian lands is subject to IGRA, which is administered by the NIGC, an independent agency within the United States Department of the Interior, which exercises primary federal regulatory responsibility over Indian gaming. The NIGC has exclusive federal authority to issue regulations governing tribal gaming activities, approve tribal ordinances for regulating Class II and Class III Gaming (as described below), approve management agreements for gaming facilities, conduct investigations and generally monitor tribal gaming. Certain responsibilities under IGRA (such as the approval of gaming compacts, gaming revenue allocation plans for tribal members and the review of applications to take land into trust for gaming) are retained by the BIA. The BIA also has responsibility to review and approve certain agreements and land leases relating to Indian lands. The U.S. Department of Justice also retains responsibility for federal criminal law enforcement on the Mohegan reservation.

The NIGC is empowered to inspect and audit all Indian gaming facilities, to conduct background checks on all persons associated with Class II Gaming and management contractors involved in Class III Gaming, to hold hearings, issue subpoenas, take depositions, adopt regulations and assess fees and impose civil penalties for violations of IGRA. IGRA also prohibits illegal gaming on Indian lands and theft from Indian gaming facilities. The NIGC has adopted rules implementing specific provisions of IGRA, which govern, among other things, the submission and approval of tribal gaming ordinances or resolutions and require an Indian tribe to have the sole proprietary interest in and responsibility for the conduct of any gaming. Tribes are required to issue gaming licenses only under articulated standards, to conduct or commission financial audits of their gaming enterprises, to perform

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or commission background investigations for primary management officials and key employees and to maintain their facilities in a manner that adequately protects the environment and the public health and safety. These rules also set out review and reporting procedures for tribal licensing of gaming operation employees and tribal gaming facilities.

Tribal Ordinances

Under IGRA, except to the extent otherwise provided in a tribal-state compact, Indian tribal governments have primary regulatory authority over Class III Gaming on land within a tribe's jurisdiction. Therefore, our gaming operations, and persons engaged in gaming activities, are guided by and subject to the provisions of the Tribe's ordinances and regulations regarding gaming, in addition to the provisions of the Mohegan Compact.

IGRA requires that the NIGC review tribal gaming ordinances and authorizes the NIGC to approve such ordinances only if they meet specific requirements relating to: (1) the ownership, security, personnel background, record keeping and auditing of a tribe's gaming enterprises, (2) the use of the revenues from such gaming and (3) the protection of the environment and the public health and safety. The Tribe adopted its gaming ordinance in July 1994, and the NIGC approved the gaming ordinance in November 1994.

Classes of Gaming

IGRA classifies games that may be conducted on Indian lands into three categories. Class I Gaming includes social games solely for prizes of minimal value or traditional forms of Indian gaming engaged in by individuals as part of, or in connection with, tribal ceremonies or celebrations. Class II Gaming includes bingo, pull-tabs, lotto, punch boards, tip jars, certain non-banked card games (if such games are played legally elsewhere in the state), instant bingo and other games similar to bingo, if those games are played at the same location where bingo is played. Class III Gaming includes all other forms of gaming, such as slot machines, video casino games (e.g., video blackjack and video poker), so-called banked table games (e.g., blackjack, craps and roulette) and other commercial gaming (e.g., sports betting and pari-mutuel wagering).

Class I Gaming on Indian lands is within the exclusive jurisdiction of the Indian tribe and is not subject to IGRA. Class II Gaming is permitted on Indian lands if: (1) the state in which the Indian lands lie permits such gaming for any purpose by any person, organization or entity, (2) the gaming is not otherwise specifically prohibited on Indian lands by federal law, (3) the gaming is conducted in accordance with a tribal ordinance or resolution which has been approved by the NIGC, (4) an Indian tribe has sole proprietary interest and responsibility for the conduct of gaming, (5) the primary management officials and key employees are tribally licensed and (6) several other requirements are met. Class III Gaming is permitted on Indian lands if the conditions applicable to Class II Gaming are met, and in addition, the gaming is conducted in conformance with the terms of a tribal-state compact (a written agreement between the tribal government and the government of the state within whose boundaries the tribe's lands lie).

With the growth of the Internet and other modern advances, computers and other technology aids are increasingly used to conduct specific kinds of gaming, such as poker or wagering on horse racing. The states of Nevada and New Jersey have passed legislation to license and tax Internet poker and other on-line gaming conducted on an intra-state basis or with other states by compact, while new federal on-line gaming legislation has been introduced in Congress. To date, Congress has considered but not passed amendments to the Unlawful Internet Gambling Enforcement Act of 2006 or new legislation to establish a licensing, taxing and enforcement framework for Internet gaming. The U.S. Department of Justice has brought indictments against various operators and payment processors involved in offshore on-line gaming transactions with persons located in the United States and also authored an opinion clarifying the department’s view of permissible on-line activities by state lotteries under federal law.

Tribal-State Compacts

IGRA requires states to negotiate in good faith with Indian tribes that seek to enter into tribal-state compacts for the conduct of Class III Gaming. Such tribal-state compacts may include provisions for the allocation of criminal and civil jurisdiction between the state and the Indian tribe necessary for the enforcement of laws and regulations, taxation by the Indian tribe of gaming activities in amounts comparable to those amounts assessed by the state for comparable activities, remedies for breach of compacts, standards for the operation of gaming and maintenance of gaming facilities, including licensing and any other subjects that are directly related to the operation of gaming activities. While the terms of tribal-state compacts vary from state to state, compacts within a state tend to be substantially similar. Tribal-state compacts usually specify the types of permitted games, establish technical standards for gaming, set maximum and minimum machine payout percentages, entitle the state to inspect casinos, require background investigations and licensing of casino employees and may require the tribe to pay a portion of the state's expenses for establishing and maintaining regulatory agencies. Some tribal-state compacts are for set terms, while others are for an indefinite duration.

IGRA provides that if an Indian tribe and state fail to successfully negotiate a tribal-state compact, the United States Department of the Interior may approve gaming procedures pursuant to which Class III Gaming may be conducted on Indian

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lands. Gaming compacts or approved gaming procedures take effect upon notice of approval by the Secretary of the Interior published in the Federal Register. The Mohegan Compact, approved by the United States Secretary of the Interior in 1994, does not have a specific term and will remain in effect until terminated by written agreement between both parties, or the provisions are modified as a result of a change in applicable law. Our gaming operations are subject to the requirements and restrictions contained in the Mohegan Compact, which authorizes the Tribe to conduct most forms of Class III Gaming.

Tribal-state compacts have been the subject of litigation in a number of states, including Alabama, California, Florida, Kansas, Michigan, Mississippi, New Mexico, New York, Oklahoma, Oregon, South Dakota, Texas, Washington and Wisconsin. Tribes frequently seek to enforce the provision of IGRA which entitles tribes to bring suit in federal court against a state that fails to negotiate a tribal-state compact in good faith. The U.S. Supreme Court resolved this issue by holding that the Indian Commerce Clause does not grant Congress authority to abrogate sovereign immunity granted to the states under the Eleventh Amendment. Accordingly, IGRA does not grant jurisdiction over a state that did not consent to be sued.

There has been litigation in a number of states challenging the authority of state governors, under state law, to enter into tribal-state compacts without legislative approval. Federal courts have upheld such authority in the states of Louisiana and Mississippi. The highest state courts of Arizona, Kansas, Michigan, New Mexico, New York and Rhode Island have held that governors in those states did not have authority to enter into such compacts without the consent or authorization of the legislatures of those states. In the New Mexico and Kansas cases, the courts held that the authority to enter into such compacts is a legislative function under their respective state constitutions. The court in the New Mexico case also held that state law does not permit casino-style gaming.

In the State of Connecticut, there has been no litigation challenging the governor's authority to enter into tribal-state compacts. If such a suit was filed, however, the Tribe does not believe that the precedent in the New Mexico or Kansas cases would apply. At the time of execution of the Mohegan Compact, the Connecticut Attorney General issued a formal opinion, which states that, “existing state statutes provide the Governor with the authority to negotiate and execute the Mohegan Compact.” Thus, the Attorney General declined to follow the Kansas case. In addition, in a case brought by the MPT, the United States Court of Appeals for the Second Circuit has held that Connecticut law authorizes casino gaming. After execution of the Mohegan Compact, the Connecticut General Assembly passed a law requiring that future gaming compacts be approved by the legislature, but that law does not apply to previously executed compacts such as the Mohegan Compact.

Possible Changes in Federal Law

Bills have been introduced in Congress from time to time seeking to amend IGRA. While there have been a number of technical amendments to the law, to date, there have been no material changes to IGRA. Any amendment to IGRA could change the regulatory environment and requirements within which the Tribe could conduct gaming.

Pennsylvania Racing Regulations

Our harness racing operations at Mohegan Sun at Pocono Downs is subject to extensive regulation under the Pennsylvania Racing Act. Under that law, the Pennsylvania Harness Racing Commission, or Harness Racing Commission, is responsible for, among other things:

• granting permission annually to maintain racing licenses and schedule races;

• approving, after a public hearing, the opening of additional OTWs and racetracks;

• approving simulcasting activities;

• licensing all officers, directors, racing officials and certain other employees of a company; and

• approving all contracts entered into by a company affecting racing, pari-mutuel wagering, phone/internet wagering and OTW operations.

As in most states, the regulations and oversight applicable to our operations in the Commonwealth of Pennsylvania are intended primarily to safeguard the legitimacy of the sport and its freedom from inappropriate or criminal influences. The Harness Racing Commission has broad authority to regulate in the best interests of racing and may disapprove the involvement of certain personnel in our operations, deny approval of certain acquisitions following their consummation or withhold permission for a proposed OTW site for a variety of reasons, including community opposition. The Pennsylvania legislature also has reserved the right to revoke the power of the Harness Racing Commission to approve additional OTWs and could, at any time, terminate pari-mutuel wagering as a form of legalized gaming in the Commonwealth of Pennsylvania or subject such wagering to additional restrictive regulation or taxation.

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Pennsylvania Gaming Regulations

Our slot machine and table game operations at Mohegan Sun at Pocono Downs are subject to extensive regulation under the Pennsylvania Gaming Act. Under that law, as amended, the PGCB is responsible for, among other things:

• issuing and renewing slot machine licenses and table game certificates;

• approving, after a public hearing, the granting of additional slot machine licenses or table game certificates (to the extent allowed under the Pennsylvania Gaming Act);

• licensing all officers, directors, principals and certain other employees and vendors of a company with gaming operations; and

• approving certain contracts entered into by a company affecting gaming operations.

As in most states, the regulations and oversight applicable to our operations in the Commonwealth of Pennsylvania are intended primarily to safeguard the legitimacy of gaming and its freedom from inappropriate or criminal influences. The PGCB has broad authority to regulate in the best interests of gaming and may disapprove the involvement of certain personnel in our operations, reject certain transactions following their consummation, require divestiture by unsuitable persons or withhold permission on applicable gaming matters for a variety of reasons.

Material Agreements

The following summarizes the terms of our material agreements. This summary does not restate in entirety the terms of each agreement. We urge you to read each agreement because they, and not this summary, define our rights and obligations, and, in some cases, those of the Tribe. Material agreements are included by reference to previous filings in the schedule of exhibits to this Annual Report on Form 10-K.

Gaming Compact with the State of Connecticut

In April 1994, the Tribe and the State of Connecticut entered into the Mohegan Compact, which authorizes and regulates the Tribe's conduct of gaming on the Tribe's land in the State of Connecticut, and the U.S. Secretary of the Interior approved the Mohegan Compact by notice published in the Federal Register on December 16, 1994. The Mohegan Compact has a perpetual term and is substantively similar to the procedures that govern gaming operations of the MPT in the State of Connecticut and provide, among other things, as follows:

(1) The Tribe is authorized to conduct on its reservation those Class III Gaming activities specifically enumerated in the Mohegan Compact or amendments thereto. The forms of Class III Gaming authorized under the Mohegan Compact include: (a) specific types of games of chance, (b) video facsimiles of such authorized games of chance (i.e., slot machines), (c) off-track pari-mutuel betting on animal races, (d) pari-mutuel betting, through simulcasting, on animal races and (e) certain other types of pari-mutuel betting on games and races conducted at the gaming facility (some types currently are together with off-track pari-mutuel telephone betting on animal races, under a moratorium).

(2) The Tribe must establish standards of operations and management of all gaming operations in order to protect the public interest, ensure the fair and honest operation of gaming activities and maintain the integrity of all Class III Gaming activities conducted on the Tribe's land. The first of these standards was set forth in the Mohegan Compact and approved by the State of Connecticut gaming agency. State of Connecticut gaming agency approval is required for any revision to such standards affecting gaming. The Tribe must supervise the implementation of these standards by regulation through a Tribal gaming agency.

(3) Criminal law enforcement matters relating to Class III Gaming activities are under the concurrent jurisdiction of the State of Connecticut and the Tribe.

(4) All gaming employees must obtain and maintain a gaming employee license issued by the State of Connecticut gaming agency.

(5) Any enterprise providing gaming services or gaming equipment to the Tribe is required to hold a valid and current gaming services registration issued by the State of Connecticut gaming agency.

(6) The State of Connecticut annually assesses the Tribe for the costs attributable to its regulation of the Tribe's gaming operations and for the provision of law enforcement at the Tribe's gaming facility.

(7) Net revenues from the Tribe's gaming operations may be applied only for purposes related to Tribal government operations and general welfare, Tribal economic development, charitable contributions and payments to local governmental agencies.

(8) Tribal ordinances and regulations governing health and safety standards at the gaming facility shall be no less rigorous than certain State of Connecticut standards.

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(9) Service of alcoholic beverages within the gaming facility is subject to regulation by the State of Connecticut.

(10) The Tribe waives any defense which it may have by virtue of sovereign immunity with respect to any action brought by the State of Connecticut to enforce the Mohegan Compact in the United States District Court for the District of Connecticut.

In May 1994, the Tribe and the State of Connecticut entered into the MOU, which sets forth certain matters regarding the implementation of the Mohegan Compact. The MOU stipulates that a portion of the revenues earned on slot machines must be paid to the State of Connecticut. This payment is known as the Slot Win Contribution. For each 12-month period commencing July 1, 1995, the Slot Win Contribution shall be the lesser of: (1) 30% of gross revenues from slot machines or (2) the greater of (a) 25% of gross revenues from slot machines or (b) $80.0 million. The Slot Win Contribution payments will not be required if the State of Connecticut legalizes any other gaming operations with slot machines or other commercial casino games within the State of Connecticut except those operations consented to by the Tribe and the MPT.

Relinquishment Agreement

In February 1998, we and Trading Cove Associates, or TCA, entered into a relinquishment agreement, or the relinquishment agreement. Effective January 1, 2000, or the relinquishment date, the relinquishment agreement superseded a then-existing management agreement with TCA. The relinquishment agreement provides, among other things, that we make certain payments to TCA out of, and determined as a percentage of, revenues, as defined under the relinquishment agreement, generated by Mohegan Sun over a 15-year period commencing on the relinquishment date. The payments, or senior relinquishment payments and junior relinquishment payments, have separate schedules and priorities. Senior relinquishment payments commenced on April 25, 2000, 25 days following the end of the first three-month period after the relinquishment date, and continue at the end of each three-month period thereafter until January 25, 2015. Junior relinquishment payments commenced on July 25, 2000, 25 days following the end of the first six-month period after the relinquishment date, and continue at the end of each six-month period thereafter until January 25, 2015. Each senior and junior relinquishment payment is 2.5% of revenues generated by Mohegan Sun over the immediate preceding three-month or six-month payment period, as the case may be. Revenues are defined under the relinquishment agreement as gross gaming revenues, other than Class II Gaming revenues, and all other revenues, as defined, including, without limitation, hotel revenues, room service revenues, food and beverage revenues, ticket revenues, fees or receipts from the convention/events center and all rental revenues or other receipts from lessees and concessionaires, but not the gross receipts of such lessees, licenses and concessionaires, derived directly or indirectly from the facilities, as defined. Revenues under the relinquishment agreement exclude revenues generated from certain expansion areas of Mohegan Sun, such as Casino of the Wind, as such areas do not constitute facilities as defined under the relinquishment agreement.

In the event of any bankruptcy, liquidation, reorganization or similar proceeding, the relinquishment agreement provides that senior and junior relinquishment payments then due and owing are subordinated in right of payment to our senior secured obligations, which include our bank credit facilities, senior secured notes and capital lease obligations, and that junior relinquishment payments then due and owing are further subordinated in right of payment to all of our other senior obligations, including our senior unsecured notes. The relinquishment agreement also provides that all relinquishment payments are subordinated in right of payment to minimum priority distribution payments, which are required monthly payments made by us to the Tribe under a priority distribution agreement, to the extent then due.

In connection with the relinquishment agreement, TCA granted us an exclusive, irrevocable, perpetual, world-wide and royalty-free license with respect to trademarks and other similar rights, including the “Mohegan Sun” name.

Priority Distribution Agreement

In August 2001, we and the Tribe entered into an agreement, or the priority distribution agreement, which stipulates that we must make monthly payments to the Tribe to the extent of our net cash flow, as defined under the priority distribution agreement. The priority distribution agreement, which has a perpetual term, limits the maximum aggregate priority distribution payments in each calendar year to $14.0 million, as adjusted annually in accordance with a formula specified in the priority distribution agreement to reflect the effects of inflation. Payments under the priority distribution agreement: (1) do not reduce our obligations to reimburse the Tribe for governmental and administrative services provided by the Tribe or to make payments under any other agreements with the Tribe, (2) are limited obligations and are payable only to the extent of our net cash flow, as defined under the priority distribution agreement and (3) are not secured by a lien or encumbrance on any of our assets or properties. We pay additional priority distributions to the Tribe in compliance with restrictive financial covenants under our bank credit facilities, line of credit and note indentures, and exclusive of priority distributions under the priority distribution agreement, as described in this Annual Report on Form 10-K under “Part III. Item 13. Certain Relationships and Related Transactions, and Director Independence. Transactions between the Authority and the Authority’s Subsidiaries and the Tribe.”

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Town of Montville Agreement

In June 1994, the Tribe entered into an agreement with the Town of Montville, or the Town, under which the Tribe agreed to pay the Town $500,000 annually to minimize the impact of Tribe’s reservation being held in trust on the Town. The Tribe has assigned its rights and obligations under this agreement to us.

Land Lease Agreement

The land upon which Mohegan Sun is located is held in trust for the Tribe by the United States. We entered into a land lease agreement with the Tribe to lease the property and improvements and related facilities constructed or installed on the property. In March 2007, the agreement was amended to update the legal description of the property, and, in April 2007, the amended agreement was approved by the Secretary of the Interior. The following summarizes the key provisions of the land lease agreement.

Term

The term of the agreement is 25 years with an option, exercisable by us, to extend the term for one additional 25-year period. Upon termination of the agreement, we will be required to surrender to the Tribe possession of the property and improvements, excluding any equipment, furniture, fixtures or other personal property.

Rent and Other Operating Costs and Expenses

The agreement requires us to pay the Tribe a nominal annual rental fee. For any period that the Tribe or another agency or instrumentality of the Tribe is not the tenant, the rent will be 8% of such tenant’s gross revenues from the property. We are responsible for all costs and expenses of owning, operating, constructing, maintaining, repairing, replacing and insuring the property.

Use of Property

We may utilize the property and improvements solely for the operation of Mohegan Sun, unless prior approval is obtained from the Tribe for any proposed alternative use. We may not construct or alter any building or improvement located on the property unless complete and final plans and specifications are approved by the Tribe. Following foreclosure of any mortgage on our interest under the agreement or any transfer of such interest to the holder of such mortgage in lieu of foreclosure, the property and improvements may be utilized for any lawful purpose, subject to applicable codes and governmental regulations; provided, however, that a non-Indian holder of the property may under no circumstance conduct gaming operations on the property.

Permitted Mortgages and Rights of Permitted Mortgagees

We may not mortgage, pledge or otherwise encumber our leasehold estate in the property except to a holder of a permitted mortgage. Under the terms of the agreement, permitted mortgages include the leasehold mortgage securing our obligations under our bank credit facilities and senior secured notes, provided that, among other things: (1) the Tribe will have the right to notice of, and to cure, any default by us, (2) the Tribe will have the right to prior notice of an intention by the holder to foreclose on the permitted mortgage and the right to purchase the mortgage in lieu of any foreclosure and (3) the permitted mortgage is subject and subordinated to any and all access and utility easements granted by the Tribe under the agreement. Under the terms of the agreement, each holder of a permitted mortgage has the right to notice of any default by us under the agreement and the opportunity to cure such default within the applicable cure period.

Default Remedies

We will be in default under the agreement if, subject to the notice provisions, we fail to make lease payments or comply with covenants under the agreement or if we pledge, encumber or convey our interest in violation of the terms of the agreement. Following a default, the Tribe may, with approval from the Secretary of the Interior, terminate the agreement unless a permitted mortgage remains outstanding with respect to the property. In such case, the Tribe may not: (1) terminate the agreement or our right to possession of the property, (2) exercise any right of re-entry, (3) take possession of and/or relet the property or any portion thereof or (4) enforce any other right or remedy, which may materially and adversely affect the rights of the holder of the permitted mortgage, unless the default triggering such rights was a monetary default of which such holder failed to cure after notice.

Cowlitz Project

In September 2004, Salishan-Mohegan entered into development and management agreements with the Cowlitz Tribe in connection with the Cowlitz Project, which agreements have been amended from time to time. Under the terms of the development agreement, Salishan-Mohegan will assist in securing financing, as well as administer and oversee the planning, designing, development, construction and furnishing of the proposed casino. The development agreement provides for development fees of 3% of total project costs, as defined under the development agreement. Under the terms of Salishan-Mohegan's operating agreement, development fees will be distributed to Mohegan Ventures-NW. In 2006, Salishan-Mohegan purchased a 152-acre site for the proposed casino, which will be transferred to the Cowlitz Tribe or the United States pursuant to the development agreement.

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Development of the Cowlitz Project is subject to certain governmental and regulatory approvals and agreements, including, but not limited to, a gaming compact with the State of Washington and acceptance of land into trust on behalf of the Cowlitz Tribe by the United States Department of the Interior. The development agreement provides for termination of Salishan-Mohegan’s exclusive development rights if the land is not taken into trust by December 31, 2020. Under the terms of the management agreement, Salishan-Mohegan will manage, operate and maintain the proposed casino for a period of seven years following its opening. The management agreement provides for management fees of 24% of net revenues, as defined under the management agreement, which approximates net income earned from the Cowlitz Project. Under the terms of Salishan-Mohegan's operating agreement, management fees will be allocated to the members of Salishan-Mohegan based on their respective membership interest. The management agreement is subject to approval by the NIGC. On August 7, 2014, the Cowlitz Tribe’s Class III Tribal-State gaming compact with the State of Washington became effective with notice of federal approval published in the Federal Register. According to the notice, the compact allows for two gaming facilities, allocates 975 gaming machines for leasing, authorizes the operation of up to 3,000 gaming machines and 125 table games, and is in effect until terminated by written agreement of both parties.

Under the terms of the development agreement, certain receivables contributed to Salishan-Mohegan and amounts advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe are reimbursable to Salishan-Mohegan by the Cowlitz Tribe, subject to appropriate approvals defined under the development agreement. Reimbursements are contingent and are to be distributed upon: (1) the receipt of necessary financing for the development of the proposed casino and (2) the related property being taken into trust by the United States Department of the Interior. We currently accrue interest on the Salishan-Mohegan receivables at an annual rate of 10.0%.

In March 2013, two lawsuits challenging a December 2010 decision of the Assistant Secretary - Indian Affairs of the Department of the Interior to take the 152-acre Cowlitz Project site into trust were dismissed on procedural grounds. In April 2013, pursuant to judicial directive, the Department of the Interior issued a new Record of Decision to take the Cowlitz Project site into trust, determining for a second time that the site will serve as the initial reservation of the Cowlitz Tribe and that the tribe may conduct gaming on such lands under the Indian Gaming Regulatory Act. In June 2013, the plaintiffs in the earlier litigation filed two new lawsuits challenging the new Record of Decision, and, in July 2013, those lawsuits were consolidated. By Notice of Trust Acquisition filed with the court on October 22, 2014, while motions for summary judgment filed by the plaintiffs and the defendants were pending, the federal defendants provided the court notice of the United States Department of the Interior's planned trust acquisition of the Cowlitz Project site, which was the subject of the litigation, on the earlier of: (1) January 21, 2015 and (2) 30 days after a court order granting summary judgment in favor of the federal defendants. On December 12, 2014, a U.S. District Court for the District of Columbia judge entered an order granting summary judgment in favor of the federal defendants, thereby upholding the Record of Decision and denying the federal plaintiffs’ motion. On December 18, 2014, one of the federal plaintiffs, the Confederated Tribes of the Grand Ronde Community of Oregon, filed notice of an appeal of that order to the Court of Appeals for the District of Columbia Circuit. We can provide no assurance as to the outcome of this appeal or any future litigation or that the remaining steps and conditions for the Cowlitz Project site to be taken into trust for gaming will be satisfied or that necessary financing for the development of the proposed casino will be obtained.

Certain Indebtedness

The following summarizes the terms of our debt agreements. This summary does not restate in entirety the terms of each agreement. We urge you to read each agreement because they, and not this summary, define our rights and obligations, and, in some cases, those of the Tribe. Material agreements are included by reference to previous filings in the schedule of exhibits to this Annual Report on Form 10-K. Certain other matters relating to our debt obligations are further discussed under “Item 1A. Risk Factors,” “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 15. Exhibits, Financial Statement Schedules” to this Annual Report on Form 10-K.

Senior Secured Credit Facilities

In November 2013, we entered into a loan agreement among us, the Tribe, the guarantors as defined below, RBS Citizens, N.A. as administrative and collateral agent and the other lenders and financial institutions party thereto, providing for $955.0 million in aggregate principal amount of senior secured credit facilities, or the senior secured credit facilities, comprised of a $100.0 million senior secured revolving credit facility, or the revolving facility, a $125.0 million senior secured term loan A facility, or the term loan A facility, and a $730.0 million senior secured term loan B facility, or the term loan B facility. The senior secured credit facilities mature on June 15, 2018, subject to extension based on the satisfaction of certain conditions to November 19, 2018 (in the case of the revolving facility and the term loan A facility) and November 19, 2019 (in the case of the term loan B facility).

The term loan A facility amortizes in equal quarterly installments in an aggregate annual amount equal to 5.0% of the original principal amount for the first year after the closing date, 7.5% of the original principal amount for the second year after the closing date and 10.0% of the original principal amount in each year thereafter, with the balance payable on the maturity date of the term loan A facility. The term loan B facility amortizes in equal quarterly installments in an aggregate annual amount equal

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to 1.0% of the original principal amount. Amortization of the term loan A facility and term loan B facility began the first full fiscal quarter after the closing date. The proceeds from the term loan A facility and term loan B facility, together with a drawing under the revolving facility, were used to satisfy in full all amounts due under our prior bank credit facilities, to repurchase or redeem all of our outstanding 2009 and 2012 second lien senior secured notes and to otherwise satisfy and discharge the obligations in respect of such notes and to pay related fees and expenses. The revolving facility will otherwise be available for general corporate purposes.

As of September 30, 2014, amounts outstanding under the revolving facility, term loan A facility and term loan B facility totaled $37.0 million, $120.3 million and $724.5 million, respectively. As of September 30, 2014, letters of credit issued under the revolving facility totaled $2.9 million, of which no amount was drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving facility, and after taking into account restrictive financial covenant requirements, we had approximately $57.1 million of borrowing capacity under the revolving facility and line of credit as of September 30, 2014.

Borrowings under the senior secured credit facilities incur interest as follows: (i) for base rate loans under the revolving facility and term loan A facility, a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 basis points and (c) the one-month LIBOR rate plus 100 basis points (the highest of (a), (b) and (c), the “base rate”), plus a leverage-based margin of 250 to 350 basis points; (ii) for Eurodollar rate loans under the revolving facility and term loan A facility, the applicable LIBOR rate plus a leverage-based margin of 350 to 450 basis points; (iii) for base rate loans under the term loan B facility, the base rate (subject to a 2.0% floor) plus 350 basis points; and (iv) for Eurodollar rate loans under the term loan B facility, the applicable LIBOR rate (subject to a 1.0% floor) plus 450 basis points. We also are required to pay a leverage-based commitment fee of between 37.5 and 50 basis points for unused commitments under the revolving facility. Interest on base rate loans is payable quarterly in arrears. Interest on Eurodollar rate loans of three months or less is payable at the end of each applicable interest period and for Eurodollar rate loans of more than three months, interest is payable at intervals of three months duration after the beginning of such interest period.

Our obligations under the senior secured credit facilities are fully and unconditionally guaranteed, jointly and severally, by the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming, or collectively, the guarantors. The senior secured credit facilities are collateralized by a first priority lien on substantially all of our property and assets and those of the guarantors (other than MBC), including the assets that comprise Mohegan Sun at Pocono Downs and a leasehold mortgage on the land and improvements that comprise Mohegan Sun (we and the guarantors, other than MBC, are collectively referred to herein as the grantors). The grantors also are required to pledge additional assets as collateral for the senior secured credit facilities as they and future guarantor subsidiaries acquire them.

The senior secured credit facilities contain customary covenants applicable to us and our restricted subsidiaries, including covenants governing: incurrence of indebtedness, incurrence of liens, payment of dividends and other distributions, investments, asset sales, affiliate transactions, mergers or consolidations and capital expenditures. Additionally, the senior secured credit facilities include financial maintenance covenants pertaining to total leverage, secured leverage and minimum fixed charge coverage.

Senior Unsecured Notes

2013 9 ³/4% Senior Unsecured Notes

In August 2013, we issued $500.0 million senior unsecured notes with fixed interest payable at a rate of 9.75% per annum, or the 2013 senior unsecured notes. The net proceeds from this transaction, together with borrowings under the prior bank credit facility, were used to repurchase or redeem all of our then outstanding 2012 10.5% third lien senior secured notes, to repurchase $69.0 millionof our outstanding 2012 11.0% senior subordinated notes and to pay related fees and expenses. The 2013 senior unsecured notes mature on September 1, 2021. We may redeem the 2013 senior unsecured notes, in whole or in part, at any time prior to September 1, 2016 at a price equal to 100% of the principal amount plus a make-whole premium and accrued interest to the date of redemption. On or after September 1, 2016, we may redeem the 2013 senior unsecured notes, in whole or in part, at specified redemption prices, together with accrued interest to the date of redemption. If we experience specific kinds of change of control triggering events, we must offer to repurchase the 2013 senior unsecured notes at a price equal to 101% of the principal amount thereof, plus accrued interest to the purchase date. In addition, if we undertake certain types of asset sales and do not use the related sale proceeds for specified purposes, we may be required to offer to repurchase the 2013 senior unsecured notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2013 senior unsecured notes is payable semi-annually on March 1^st and September 1^st, commencing March 1, 2014. On March 11, 2014, we completed an offer to exchange the 2013 senior unsecured notes for a new issue of substantially identical debt securities registered under the Securities Act of 1933, with all outstanding notes being exchanged.

The 2013 senior unsecured notes are uncollateralized general obligations and are effectively subordinated to all of our and the guarantors' and future guarantor subsidiaries' senior secured indebtedness, including the senior secured credit facilities, to the extent of the value of the collateral securing such indebtedness. The 2013 senior unsecured notes also are effectively

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subordinated to any indebtedness and other liabilities (including trade payables) of our subsidiaries that do not guarantee the 2013 senior unsecured notes. The 2013 senior unsecured notes rank equally in right of payment with our other unsecured, unsubordinated indebtedness, including trade payables and the senior portion of our payment obligations under our relinquishment agreement. The 2013 senior unsecured notes are fully and unconditionally guaranteed, jointly and severally, by the guarantors.

The 2013 senior unsecured notes indenture contains certain covenants that, subject to certain significant exceptions, limit, among other things, our and guarantors’ ability to incur additional debt, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company or transfer and sell assets. The 2013 senior unsecured notes indenture includes customary events of default, including, but not limited to, failure to make required payments, failure to comply with certain agreements or covenants, failure to pay certain other indebtedness, the occurrence of which is caused by a failure to pay principal, premium or interest or results in the acceleration of such indebtedness, certain events of bankruptcy and insolvency and certain judgment defaults.

Senior Subordinated Notes

2005 6 ⁷/8% Senior Subordinated Notes

In February 2005, we issued $150.0 million senior subordinated notes with fixed interest payable at a rate of 6.875% per annum, or the 2005 senior subordinated notes. The 2005 senior subordinated notes mature on February 15, 2015. The 2005 senior subordinated notes are callable at our option at par. Interest on the 2005 senior subordinated notes is payable semi-annually on February 15^th and August 15^th.

In March 2012, we completed a private exchange offer and consent solicitation for any or all of our outstanding 2005 senior subordinated notes. As part of the exchange offer, we solicited and received consents from tendering holders to certain amendments to the indentures governing the 2005 senior subordinated notes, which eliminated certain covenants under the notes and related indenture. The aggregate principal amount of 2005 senior subordinated notes tendered and exchanged was $140.3 million. An aggregate principal amount of $9.7 million 2005 senior subordinated notes remains outstanding as of September 30, 2014. We plan to repay the outstanding 2005 senior subordinated notes, including accrued interest, at maturity with cash on hand and drawings under the revolving facility.

2012 11% Senior Subordinated Notes

In March 2012, we issued $344.2 million senior subordinated toggle notes with fixed interest payable at a rate of 11% per annum, or the 2012 senior subordinated notes, in exchange for $203.8 million of 2004 senior subordinated notes and $140.3 million of 2005 senior subordinated notes. The 2012 senior subordinated notes mature on September 15, 2018. We may redeem the 2012 senior subordinated notes, in whole or in part, at any time, at a price equal to 100% of the principal amount plus accrued interest. If a change of control occurs, we must offer to repurchase the 2012 senior subordinated notes at a price equal to 101% of the principal amount, plus accrued interest. In addition, if we undertake certain types of asset sales or suffer events of loss, and we do not use the related sale or insurance proceeds for specified purposes, we may be required to offer to repurchase the 2012 senior subordinated notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2012 senior subordinated notes is payable semi-annually on March 15^th and September 15^th. The initial interest payment on the 2012 senior subordinated notes was payable entirely in cash. For any subsequent interest payment period through March 15, 2018, we may, at our option, elect to pay interest on the 2012 senior subordinated notes either entirely in cash or by paying up to 2% in 2012 senior subordinated notes, or PIK interest. If we elect to pay PIK interest, such election will increase the principal amount of the 2012 senior subordinated notes in an amount equal to the amount of PIK interest for the applicable interest payment period to holders of 2012 senior subordinated notes on the relevant record date.

In August 2013, we repurchased an aggregate principal amount of $69.0 million 2012 senior subordinated notes. An aggregate principal amount of $275.2 million 2012 senior subordinated notes remains outstanding as of September 30, 2014.

The 2012 senior subordinated notes and guarantees have not been and will not be registered under the Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

Our senior subordinated notes are uncollateralized general obligations and are subordinated to borrowings under the senior secured credit facilities and 2013 senior unsecured notes. The senior subordinated notes are fully and unconditionally guaranteed, jointly and severally, by the guarantors.

The senior and senior subordinated note indentures contain certain non-financial and financial covenant requirements with which we and the Tribe must comply. The non-financial covenant requirements include, among other things, reporting obligations, compliance with laws and regulations, maintenance of licenses and insurances and our continued existence. The financial covenant requirements include, among other things, subject to certain exceptions, limitations on our and the guarantors'

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ability to incur additional indebtedness, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company, transfer or sell assets or impair assets constituting collateral.

We or our affiliates may, from time to time, seek to purchase or otherwise retire outstanding indebtedness for cash in open market purchases, privately negotiated transactions or otherwise. Any such transaction will depend on prevailing market conditions and our liquidity and covenant requirement restrictions, among other factors.

Line of Credit

In November 2013, in connection with the new senior secured credit facilities, we entered into a new $16.5 million revolving credit facility with Bank of America, N.A., or the line of credit. The line of credit is coterminous with the senior secured credit facilities. Pursuant to provisions of the senior secured credit facilities, under certain circumstances, the line of credit may be converted into loans under the senior secured credit facilities. Under the line of credit, each advance accrues interest on the basis of a one-month LIBOR Rate plus an applicable margin based on our total leverage ratio, as each term is defined under the line of credit. As of September 30, 2014, amounts outstanding under the line of credit totaled $3.0 million. Borrowings under the line of credit are uncollateralized obligations. The line of credit contains negative covenants and financial maintenance covenants that are substantially the same as those contained in the senior secured credit facilities.

2009 Mohegan Tribe Promissory Note

In September 2009, the Tribe made a $10.0 million loan to Salishan-Mohegan, LLC, or Salishan-Mohegan, referred to herein as the 2009 Mohegan Tribe promissory note. The 2009 Mohegan Tribe promissory note was amended in June 2014 to extend the maturity date to September 30, 2015. The 2009 Mohegan Tribe promissory note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) $1.2 million per quarter, commencing December 31, 2013 through March 31, 2014 and (ii) $1.3 million on June 30, 2015, with the balance of accrued and unpaid interest due at maturity. As amended, principal outstanding under the 2009 Mohegan Tribe promissory note amortizes as follows: (i) $1.625 million per quarter, commencing December 31, 2012 through September 30, 2013, (ii) $875,000 per quarter, commencing December 31, 2013 through March 31, 2014, (iii) $875,000 on June 30, 2015 and (iv) $875,000 at maturity.

2012 Mohegan Tribe Minor's Trust Promissory Note

In March 2012, Comerica Bank & Trust, N.A., Trustee f/b/o The Mohegan Tribe of Indians of Connecticut Minor's Trust, made a $20.0 million loan to Salishan-Mohegan, referred to herein as the 2012 Mohegan Tribe Minor's Trust promissory note. The 2012 Mohegan Tribe Minor's Trust promissory note was amended in June 2014 to extend the maturity date to March 31, 2017. The 2012 Mohegan Tribe Minor's Trust promissory note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) quarterly, commencing June 30, 2012 through March 31, 2014, (ii) on July 1, 2014 on the unpaid balance for the period April 1, 2014 through June 30, 2014, (iii) $800,000 per quarter, commencing September 30, 2015 through March 31, 2016 and (iv) quarterly, thereafter on the unpaid balance. As amended, principal outstanding under the 2012 Mohegan Tribe Minor's Trust promissory note amortizes as follows: (i) $500,000 per quarter, commencing December 31, 2012 through March 31, 2014, (ii) $500,000 on July 1, 2014 and September 30, 2015, (iii) $1.5 million per quarter, commencing December 31, 2015 through September 30, 2016 and (iv) $10.0 million at maturity.

2013 Mohegan Tribe Promissory Note

In March 2013, Mohegan Gaming & Hospitality, LLC, or MG&H, purchased and acquired all of the Tribe's membership interest in MG&H in exchange for a promissory note in the principal amount of $7.4 million, or the 2013 Mohegan Tribe promissory note. The 2013 Mohegan Tribe promissory note matures on December 31, 2018. The 2013 Mohegan Tribe promissory note accrues interest at an annual rate of 4.0% payable quarterly.

Downs Lodging Credit Facility

In July 2012, Downs Lodging, a single purpose entity and wholly-owned unrestricted subsidiary, entered into a credit agreement providing for a $45.0 million term loan from a third-party lender, or the Downs Lodging credit facility. The proceeds from the Downs Lodging credit facility were used by Downs Lodging to fund Project Sunlight, a hotel and convention center expansion project at Mohegan Sun at Pocono Downs. The Downs Lodging credit facility matures on July 12, 2016 and accrues interest at an annual rate of 13.0%. Under the terms of the Downs Lodging credit facility, accrued interest of 10.0% is payable monthly in cash during the term of the loan, with the remaining 3.0% due at maturity. In addition, a 3.0% exit fee is payable upon repayment of the loan principal. The Downs Lodging credit facility is a senior secured obligation of Downs Lodging, collateralized by all existing and future assets of Downs Lodging. The Downs Lodging credit facility subjects Downs Lodging to certain covenant requirements customarily found in loan agreements for similar transactions. As of September 30, 2014, Downs Lodging was in compliance with all covenant requirements under the Downs Lodging credit facility.

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Environmental Matters

The site on which Mohegan Sun is located was formerly occupied by United Nuclear Corporation, a naval products manufacturer of, among other things, nuclear reactor fuel components. United Nuclear Corporation’s facility was officially decommissioned in June 1994 when the Nuclear Regulatory Commission confirmed that all licensable quantities of such nuclear material had been removed from the site and that any residual contamination from such material was remediated according to the Nuclear Regulatory Commission approved decommissioning plan.

From 1991 through 1993, United Nuclear Corporation commissioned environmental audits and soil sampling programs which detected, among other things, volatile organic chemicals, heavy metals and fuel hydrocarbons in the soil and groundwater. The Connecticut Department of Environmental Protection, or the DEP, reviewed the environmental audits and reports and established cleanup requirements for the site. In December 1994, the DEP approved United Nuclear Corporation’s remedial plan, which determined that groundwater remediation was unnecessary because although the groundwater beneath the site was contaminated, it met the applicable groundwater criteria given the classification of the groundwater under the site. In addition, extensive remediation of contaminated soil and additional investigation were completed to achieve the DEP’s cleanup criteria and demonstrate that the remaining soil complied with applicable cleanup criteria. Initial construction at the site also involved extensive soil excavation. According to data gathered in a 1995 environmental report commissioned by United Nuclear Corporation, remediation is complete and is consistent with the applicable Connecticut cleanup requirements. The DEP has reviewed and approved the cleanup activities at the site, and, as part of the DEP’s approval, United Nuclear Corporation was required to perform post-closure groundwater monitoring at the site to ensure the adequacy of the cleanup. In addition, under the terms of United Nuclear Corporation’s environmental certification and indemnity agreement with the Department of the Interior (which took the former United Nuclear Corporation land into trust for the Tribe), United Nuclear Corporation agreed to indemnify the Department of the Interior for environmental actions and expenses based on acts or conditions existing or occurring as a result of United Nuclear Corporation’s activities on the property.

Prior to acquiring our interest in Mohegan Sun at Pocono Downs, we conducted an extensive environmental investigation of the Pocono Downs facilities. In the course of that investigation, we identified several environmental conditions that required corrective actions to bring the property into compliance with applicable laws and regulations. These remedial actions, including an ongoing monitoring program for the portion of the property that was formerly used as a solid waste landfill, were addressed as part of a comprehensive plan that was implemented in July 2008.

We did not incur any material costs related to the above environmental matters for the fiscal years ended September 30, 2014, 2013 and 2012. Notwithstanding the foregoing, no assurance can be given that existing environmental studies revealed all environmental liabilities, or that future laws, ordinances or regulations will not impose any material environmental liability or that a material environmental condition does not otherwise currently exist.

Employees and Labor Relations

As of September 30, 2014, the Connecticut facilities employed approximately 5,280 full-time employeesand 1,925 seasonal, part-time and on-call employees. Pursuant to the Tribal Employment Rights Ordinance, when recruiting and hiring personnel, except key personnel, the Connecticut facilities are obligated to give first preference to qualified members of the Tribe and then to enrolled members of other Indian tribes. See “Certain Relationships and Related Transactions.” None of the Connecticut facilities' employees are covered by collective bargaining agreements.

As of September 30, 2014, Mohegan Sun at Pocono Downs employed approximately 1,055 full-time employees and 900 seasonal, part-time and on-call employees. Certain of our Mohegan Sun at Pocono Downs’ employees are represented under collective bargaining agreements between Downs Racing and either, the International Union of Operating Engineers Local Union 542C, or Local Union 542C, or Teamsters Local No. 401, or Local No. 401. The agreement with Local Union 542C expires on March 31, 2018 and relates to equipment and heavy equipment operators. The agreement with Local No. 401 expires on January 31, 2017 and relates to truck drivers and maintenance employees.

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Item 1A. Risk Factors.

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, set forth below are cautionary statements identifying important factors that could cause actual events or results to differ materially from any forward-looking statements made by or on behalf of us, whether oral or written. We wish to ensure that any forward-looking statements are accompanied by meaningful cautionary statements in order to maximize to the fullest extent possible the protections of the safe harbor established in the Private Securities Litigation Reform Act of 1995. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that could cause actual events or results to differ materially from our forward-looking statements. Refer also to “Cautionary Note Regarding Forward-Looking Statements” on page 1 to this Annual Report on Form 10-K.

Risks Related to Our Indebtedness

Our substantial indebtedness could adversely affect our financial condition.

We currently have and will continue to have a substantial amount of indebtedness. As of September 30, 2014, our debt totaled approximately $1.7 billion.

Our substantial indebtedness could have significant adverse effects on our business. Such adverse effects include, but are not limited to, the following:

• make it more difficult for us to satisfy our debt service obligations;

• increase our vulnerability to adverse economic, industry and competitive conditions;

• require us to dedicate a substantial portion of our cash flows from operations to repayment of our indebtedness, thereby reducing the availability of our cash flows to fund working capital requirements, capital expenditures and other general operating requirements;

• limit our flexibility in planning for, or reacting to, changes in our business and the gaming industry, which may place us at a disadvantage compared to our competitors with stronger liquidity positions, thereby negatively affecting our results of operations and ability to meet our debt service obligations;

• restrict us from exploring or taking advantage of business opportunities;

• place us at a competitive disadvantage compared to our competitors that have less debt; and

• limit, along with the financial and other restrictive covenants in our outstanding indebtedness, our ability to borrow additional funds for working capital requirements, capital expenditures, acquisitions, investments, debt service requirements, execution of our business strategy or other general operating requirements on satisfactory terms or at all.

In addition, our senior secured credit facilities and the indentures governing our existing senior and senior subordinated notes contain, and the agreements evidencing or governing other future indebtedness may contain, restrictive covenants that limit our ability to engage in activities that may be in our best interests. Our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of the required repayment of some or all of our indebtedness.

We, the Tribe and our wholly-owned subsidiaries may not be subject to federal bankruptcy laws, which could impair the ability of creditors to participate in the realization on our or our subsidiaries' assets or the restructuring of related liabilities if we are unwilling or unable to meet our debt service obligations.

We, the Tribe and our wholly-owned subsidiaries that are Tribal entities may or may not be subject to, or permitted to seek protection under, federal bankruptcy laws since an Indian tribe and us, as an instrumentality of the Tribe, may or may not be eligible to be a debtor under the U.S. Bankruptcy Code. Therefore, our creditors may not be able to seek liquidation of our or any of the other Tribal entities' assets or other action under federal bankruptcy laws. Also, the Gaming Disputes Court may lack powers typically associated with a federal bankruptcy court, such as the power to non-consensually alter liabilities, direct the priority of creditors' claims and liquidate certain assets. The Gaming Disputes Court is a court of limited jurisdiction and may not have jurisdiction over all creditors of ours or our subsidiaries or over all of the territory in which we and our subsidiaries carry on business.

Risks Related to Our Business

A person or entity's ability to enforce its rights against us is limited by our sovereign immunity and that of the Tribe, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and, to the extent applicable, the Pocono Downs subsidiaries and MTGA Gaming.

Although we, the Tribe, MBC, Mohegan Ventures-NW, Mohegan Golf, MVW, WTG and to the extent applicable, the Pocono Downs subsidiaries and MTGA Gaming, or collectively, the Tribal entities, each have sovereign immunity and generally may not be sued without our and their respective consents, a limited waiver of sovereign immunity and consent to suit has been granted in connection with substantially all of our outstanding indebtedness. Each such waiver includes suits against us to enforce

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our obligation to repay certain outstanding indebtedness. Generally, waivers of sovereign immunity have been held to be enforceable against Indian tribes. In the event that any waiver of sovereign immunity is held to be ineffective, a claimant could be precluded from judicially enforcing its rights and remedies. With limited exceptions, the Tribal entities have not waived sovereign immunity from private civil suits, including violations of the federal securities laws. For this reason, a claimant may not have any remedy against any of the Tribal entities for violations of federal securities laws.

If an entity that has sovereign immunity waives its immunity and consents to suit in federal and/or state court, disputes may be brought in a federal or state court that has jurisdiction over the matter. However, federal courts may not exercise jurisdiction over disputes not arising under federal law or between litigants that are not citizens of different states, and some courts have ruled that an Indian tribe is not a citizen of any state for purposes of obtaining federal diversity jurisdiction. The extent to which state courts will assume jurisdiction over disputes involving Indian tribes varies from state to state. In addition, the Tribe's Constitution has established a special court, the Gaming Disputes Court, to rule on disputes with respect to Mohegan Sun. The federal and state courts, under the doctrines of comity and exhaustion of tribal remedies, may (1) defer to the jurisdiction of the Gaming Disputes Court or (2) require that any plaintiff exhaust its remedies in the Gaming Disputes Court before bringing any action in federal or state court. Thus, there may be no available federal or state court forum for adjudication of a dispute with an entity that has sovereign immunity.

The limited waiver of sovereign immunity that has been granted in connection with our outstanding indebtedness additionally provides that in the event that none of the specified federal or state courts accept or exercise jurisdiction over a dispute, claims may be brought in arbitration proceedings with enforcement of arbitration awards in courts of competent jurisdiction. Such a dispute would not be decided by a judge, but by an arbitrator appointed in accordance with the commercial arbitration rules of the American Arbitration Association. The scope of a party’s ability to conduct discovery with respect to such a dispute, and the time in which the party is permitted to do so, are more limited than in a judicial proceeding. If any party does not prevail in a dispute before an arbitrator, that party’s ability to appeal the arbitrator’s decision will be limited. Federal and state courts typically are required to enforce a proper arbitration award without a re-examination of the merits of the decision. Enforcement of arbitration awards in the Gaming Disputes Court may not be subject to the same limitations on such re-examination.

If an event of default occurs in connection with our indebtedness, no assurance can be given that a forum will be available to creditors other than arbitration with enforcement of arbitration awards in the Gaming Disputes Court. In such court, there are presently limited precedents for the interpretation of Tribal law with respect to insolvency. Any execution of a judgment of the Gaming Disputes Court or any other court on Tribal lands will require the cooperation of the Tribe's officials in the exercise of their police powers. Thus, to the extent that a judgment of the Gaming Disputes Court must be executed on Tribal lands, the practical realization of any benefit of such a judgment will be dependent upon the willingness and ability of Tribal officials to carry out such judgment. In addition, the land on which Mohegan Sun is located is owned by the United States in trust for the Tribe, and our creditors and the creditors of the Tribe may not foreclose upon or obtain title to the land. Additionally, although we do not presently hold any fee interest in real property, if we did in the future, federal law may not allow for real property interest to be mortgaged or, if mortgaged, transferred as a result of foreclosure.

Any rights as a creditor are limited to our assets and those of our guarantor subsidiaries.

Any rights as a creditor in a bankruptcy, if applicable, liquidation or reorganization or similar proceeding would be limited to our assets and the assets of our guarantor subsidiaries, and would not encompass the assets of any other subsidiary that is not a guarantor, the Tribe or its other affiliates.

Our failure to generate sufficient cash flows and current and future economic and credit market conditions could adversely affect our ability to fulfill our debt service obligations or refinance our indebtedness.

Our ability to make payments on and to refinance our indebtedness will depend upon our ability to generate cash flows from operations in the future and current and future economic and credit market conditions. Our ability to generate cash flows is subject to financial, economic, political, competitive, regulatory and other factors beyond our control. We continue to monitor revenues and manage expenses and enhance operating efficiencies to ensure continued compliance with our financial covenant requirements under both our senior secured credit facilities and note indentures. While we anticipate that we will remain in compliance with all covenant requirements for all periods prior to maturity, we may need to increase revenues or offset any future declines in revenues by implementing further cost containment and other initiatives in order to maintain compliance with these financial covenant requirements. If we are unable to satisfy our financial covenant requirements, we would need to obtain waivers or consents; however, we can provide no assurance that we would be able to obtain such waivers or consents. If we are unable to obtain such waivers or consents, we would be in default under our debt documents, which may result in cross-defaults under our other outstanding indebtedness and allow our lenders and creditors to exercise their rights and remedies as defined under their respective agreements, including their right to accelerate the repayment of our outstanding indebtedness. If such acceleration were to occur, we can provide no assurance that we would be able to obtain the financing necessary to repay such accelerated indebtedness.

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There also is a risk that the banks that participate in our senior secured credit facilities may not be able to perform when we request additional funds to be advanced to us under our senior secured credit facilities. If funds are not available to be drawn under the terms of our senior secured credit facilities, we may not be able to secure additional financing.

Restrictions contained in our senior secured credit facilities and the indentures to which we are a party may impose limits on our ability to pursue our business strategies.

Our senior secured credit facilities and the indentures to which we are a party contain customary operating and financial restrictions that limit our discretion on various business matters. These restrictions include, among other things, covenants limiting our ability to:

• incur additional indebtedness;

• pay dividends or make other distributions;

• make certain investments;

• use assets as security in other transactions;

• sell certain assets or merge with or into another person;

• grant liens;

• make capital expenditures; and

• enter into transactions with affiliates.

These restrictions may, among other things, reduce our flexibility in planning for, or reacting to, changes in our business and the gaming industry in general and thereby may negatively impact our financial condition, results of operations and our ability to meet our debt service obligations.

Our senior secured credit facilities require us to maintain a fixed charge coverage ratio and not to exceed certain ratios of secured leverage and total leverage, as defined under the senior secured credit facilities. If these ratios are not maintained or are exceeded, as applicable, it may not be possible for us to borrow additional funds to meet our financial obligations.

In addition, our indentures place certain limitations on our ability to incur indebtedness. Under these indentures, we are generally able to incur indebtedness that otherwise may be restricted, provided we meet a minimum fixed charge coverage ratio, as defined. If we were to fall below the minimum fixed charge coverage ratio, our ability to incur additional debt would be limited and subject to other applicable exceptions contained in the indentures, and the options available to us to refinance our existing indebtedness would be restricted. We may need to obtain waivers or consents from our lenders in order to obtain additional debt or refinance our existing debt on satisfactory terms; however, we cannot assure you that we would be able to obtain such waivers or consents. In such event, it may not be possible for us to borrow additional funds to meet our obligations or refinance our maturities. At September 30, 2014, we were below the minimum fixed charge coverage ratio.

Additionally, our failure to comply with covenants in our debt instruments could result in an event of default, which, if not cured or waived, could have a material adverse effect on us and could result in the acceleration of the required repayment of some or all of the then-outstanding amounts of such debt and an inability to make debt service payments.

Continued weakness or a further downturn in the United States economy could negatively impact our financial performance.

During periods of economic contraction, our revenues may decrease while some of our costs remain fixed, resulting in decreased earnings since gaming and other leisure activities that we offer are discretionary expenditures and participation in such activities may decline during economic downturns because consumers have less disposable income. Even an uncertain economic outlook may adversely affect consumer spending in our gaming operations and related facilities, because consumers spend less in anticipation of a potential economic downturn.

The most recent economic recession negatively impacted consumer confidence and the amount of consumer spending at Mohegan Sun and Mohegan Sun at Pocono Downs. Continued adverse economic conditions such as a prolonged regional, national or global economic downturn or slow growth, including periods of increased inflation, rising unemployment levels, tax rates, interest rates, energy and gasoline prices or declining consumer confidence could also further reduce consumer spending. Reduced consumer spending has and may continue to result in an adverse impact on our business, financial condition and operating results. Furthermore, uncertainty and adverse changes in the economy could also increase the cost and reduce the availability of sources of financing, which could have a material adverse impact on our financial condition and operating results. If adverse economic conditions continue or worsen, our business, assets, financial condition and results of operations could continue to be affected adversely.

Our diversification efforts may not be successful.

We receive and evaluate various opportunities to diversify our business interests. These opportunities primarily include the development and/or management of, investment in, or ownership of other gaming enterprises through direct investments, acquisitions, joint venture arrangements and loan transactions. We are currently pursuing the Cowlitz Project in Clark County,

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Washington, and evaluating other opportunities in various jurisdictions. These efforts may require various levels of regulatory or legislative approval, and may require the commitment of financial and capital resources, and a failure to achieve any such approval or to obtain or generate sufficient funds to meet such financial or capital requirements may result in the termination of the respective project. Additionally, there can be no assurance that we will continue to pursue any of these opportunities or that any of them will be consummated.

The loss of a key management member could have a material adverse effect on us, Mohegan Sun and Mohegan Sun at Pocono Downs.

Our success depends in large part on the continued service of key management personnel. The loss of services of key management personnel could have a material adverse effect on our business, operating results and financial condition. Our key management personnel are currently retained pursuant to employment agreements.

The non-impairment provision of the Tribe's Constitution is subject to change.

Unlike states, the Tribe is not subject to the U.S. Constitution's provision restricting governmental impairment of contracts. The Tribe's Constitution currently has a provision that prohibits the Tribe from enacting any law that would impair the obligations of contracts entered into in furtherance of the development, construction, operation and promotion of gaming on Tribal lands. However, this provision could be amended by a vote of 75% of the Tribe's registered voters to rescind the restriction on impairment of the obligation of such contracts.

We and the Guarantors are controlled by a tribal government and may not necessarily be operated in the same way as if we and they were privately owned for-profit businesses.

We and the guarantors are subject to control by the Tribe. Our Management Board is comprised of the same nine members as the Mohegan Tribal Council, the governing body of the Tribe with legislative and executive authority. As a sovereign government, the Tribe is governed by officials elected by tribal members who have a responsibility for the general welfare of all members of the Tribe. In making decisions relative to us and the guarantors, these officials may consider the interests of their electorate, instead of pure economic or other business factors.

We may be subject to material environmental liability, including as a result of possible incomplete remediation of known environmental hazards and the existence of unknown environmental hazards.

Our properties and operations are subject to a wide range of federal, state, local and tribal environmental laws and regulations governing, among other things, air emissions, wastewater discharges, the use, management and disposal of, or exposure to, hazardous and non-hazardous materials and wastes, and the clean-up of contamination. Noncompliance with such laws and regulations, and past or future activities resulting in environmental releases, could affect our operations or could cause us to incur substantial costs, including clean-up costs, fines and penalties, or investments to retrofit or upgrade our facilities and programs. In addition, should unknown contamination be discovered on our property, or should a release of hazardous material occur on our property, we could be required to investigate and clean up the contamination and could also be held responsible to a governmental entity or third-parties for personal injury, property damage or investigation and clean-up costs, which may be substantial. Moreover, such contamination may also impair the use or value of the affected property. Liability for contamination could be joint and several in nature, and in many instances can be imposed on the owner or operator of property regardless of whether it is responsible for creating the contamination or is otherwise at fault.

At both our Mohegan Sun and Mohegan Sun at Pocono Downs properties, investigations and remedial actions have been successfully undertaken to address significant site contamination resulting from historical operations. The site on which Mohegan Sun is located was formerly occupied by United Nuclear Corporation, a naval products manufacturer of, among other things, nuclear reactor fuel components. Prior to the decommissioning of the United Nuclear Corporation facilities on the site, extensive investigations were completed and contaminated soils were remediated to applicable standards. Prior to us taking possession of the property and development of Mohegan Sun, the site was determined to be safe for general public use.

Prior to acquiring our interest in Mohegan Sun at Pocono Downs, we conducted an extensive environmental investigation of the Pocono Downs facilities. During the course of that investigation, we identified several environmental conditions that required corrective actions to bring the property into compliance with applicable laws and regulations. These remedial actions, including an ongoing monitoring program for the portion of the property that was formerly used as a solid waste landfill, were addressed as part of a comprehensive plan that was implemented by Downs Racing in July 2008.

Notwithstanding the foregoing, we cannot assure you that:

• any environmental reports or studies prepared with respect to these sites or any other properties owned or operated by us revealed all environmental liabilities;

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• prior owners or tenants did not create any material environmental condition not presently known to us that may be discovered in the future;

• future laws, ordinances or regulations will not impose any material environmental liability with regard to existing conditions or operations; or

• a material environmental condition does not otherwise exist on any site.

Any of the above could have a material adverse effect upon our future operating results and ability to meet our debt service obligations.

Our business could be affected by weather-related factors.

Our results of operations could be adversely affected by weather-related factors, such as the unfavorable winter weather conditions experienced during January and February 2011 and the effects of Hurricane Irene in August and September 2011, Hurricane Sandy in September 2012 and the Blizzard of 2013. Severe weather conditions may discourage potential patrons from traveling, or may deter or prevent patrons from reaching our facilities. If this occurs, it could have a material adverse effect on our future operating results and ability to meet our debt service obligations.

Our table games business is subject to volatility which could adversely affect our financial condition.

Table gaming, especially high-end table gaming, is more volatile than other forms of gaming, and variances in table games hold percentage may have a positive or negative impact on our quarterly revenues and operating results. Negative variations in quarterly revenues and operating results could adversely affect our financial condition.

Energy and fuel price increases may adversely affect our business and results of operations.

Our properties use significant amounts of electricity, natural gas and other forms of energy. Increases in the cost of any of our sources of energy may negatively affect our results of operations. In addition, energy and fuel price increases could negatively impact our business and results of operations by causing a decrease in visitation to our properties, including by making it difficult for potential patrons to travel to our properties or by causing patrons who do visit our properties to decrease their spending, including due to a reduction in disposable income as a result of escalating energy and fuel prices.

Our information technology and other systems are subject to cyber security risk including misappropriation of customer information or other breaches of information security.

We rely upon sophisticated information technology networks, systems and infrastructure, some of which are managed by third-parties, to process, transmit and store electronic information, and to manage or support a variety of business processes and activities. Additionally, we collect and store sensitive data, including proprietary business information. Despite security measures, our information technology networks and infrastructure may be vulnerable to damage, disruptions or shutdowns due to attack by hackers or breaches, employee error or malfeasance, power outages, computer viruses, telecommunication or utility failures, systems failures, natural disasters or other catastrophic events. Likewise, data privacy or security breaches by employees and others with permitted access to our systems, including in some cases third-party service providers to which we may outsource certain business functions, may pose a risk that sensitive data, including intellectual property or personal information, may be exposed to unauthorized persons or to the public. Security breaches and other disruptions to our information technology infrastructure could interfere with our operations, compromise information belonging to us and our customers and suppliers, and expose us to liability which could adversely impact our business and/or result in the loss of critical or sensitive information, which could result in financial, legal, business or reputational harm.

An impairment of our goodwill or other intangible assets could adversely affect our financial condition.

In accordance with authoritative guidance issued by the Financial Accounting Standards Board pertaining to goodwill and other intangible assets, we assess the goodwill associated with our acquisition of the Pennsylvania Facilities and certain other intangible assets at least annually for impairment by comparing the fair value of the goodwill or such intangible asset to its carrying value. In the event the carrying value of the goodwill or intangible asset exceeds its fair value, the goodwill or other intangible asset would be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on our financial condition. We describe the process for testing goodwill and other intangible assets for impairment and the results of our testing for fiscal 2014 and 2013 more thoroughly in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Critical Accounting Policies and Estimates” of this Annual Report on Form 10-K under the headings “Goodwill” and “Other Intangible Assets” and in Note 2 to our consolidated financial statements, under the headings “Goodwill” and “Other Intangible Assets.”

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Risks Related to Mohegan Sun

We face intense competition in our primary market from Foxwoods.

The existing gaming industry in our primary market is highly competitive. We primarily compete with Foxwoods which is located approximately 10 miles from Mohegan Sun and is reportedly one of the largest gaming facilities in the United States in terms of total gaming positions. Foxwoods has been in operation for more than 22 years. Foxwoods will be adding a new outlet retail mall to its amenities in mid-2015 which could impact competition in our primary market.

In addition to Foxwoods, we also face competition from gaming facilities elsewhere in our market areas.

While Mohegan Sun and Foxwoods are the only two current gaming operations in Southern New England offering traditional slot machines and table games, we also face competition from gaming facilities in the states of Rhode Island, New York and New Jersey. In addition, we face competition in and from the Northeastern Pennsylvania gaming market. Racinos in Yonkers, Queens, Batavia, Hamburg, Nichols, Vernon, Monticello, Saratoga Springs and Farmington, New York, reportedly operate approximately 18,000 VLTs, including electronic table game positions. While Twin River Casino and Newport Grand in the State of Rhode Island reportedly offer approximately 5,600 VLTs, including electronic table game positions. Twin River Casino also reportedly offers approximately 80 table games. Given the geographic proximity of Empire City and Resorts World to New York City and Twin River to Boston, these facilities may have a distinct advantage over Mohegan Sun in competing for patrons from the New York and Boston metropolitan regions. We also compete for patrons with casinos in Atlantic City, New Jersey. Many of these casinos may have greater resources, operating experience and name recognition than Mohegan Sun. In addition, the State of New Jersey and the Atlantic City gaming market continue to implement legislative reforms adopted in 2011 and public-private initiatives to revitalize gaming in the state.

New entrants in our market areas or the expansion of on-line gaming could adversely affect our operations and our ability to meet our financial obligations.

With the recent addition of table gaming in the states of Rhode Island, Maine, Pennsylvania and Delaware, commercial casino gaming has expanded in the Northeastern United States and is poised to expand further with the licensing of two of three authorized casino resort facilities and one slot-only facility in the Commonwealth of Massachusetts and the selection of three locations in upstate New York for three proposed full-scale casino projects, as well as the authorization of VLTs at the two off-track wagering facilities in Nassau and Suffolk counties.

Tribal gaming projects being pursued by the Mashpee Wampanoag Tribe and Aquinnah Wampanoag Tribe, both located in Massachusetts, and the Shinnecock Indian Nation of New York also increase the possibility of new tribal gaming in the Northeastern United States in the future. In addition, other federally-recognized Indian tribes continue to pursue new gaming projects elsewhere in the Northeastern United States. Additionally, groups seeking federal recognition as Indian tribes, as well as federally-recognized Indian tribes, continue efforts to establish or expand reservation lands with an interest in commercial casino gaming on such lands. In addition, Indian tribal groups from the State of Connecticut whose petitions have been rejected in recent years by the BIA may be successful with appeals or reconsiderations of those petitions.

Furthermore, the states of Nevada, New Jersey and Delaware have passed legislation to license and tax Internet poker and other on-line gaming conducted on an intra-state basis or with other states by compact, while new federal on-line gaming legislation has been introduced in Congress. State lotteries in the states of New York and Illinois also have sought and received favorable opinions from the U.S. Department of Justice on their ability to conduct certain activities on-line under federal law. In addition, the State of New Jersey has passed legislation related to sports wagering and is involved in litigation challenging the federal law which restricts legalized sports wagering to certain states.

Based on our analysis of existing and potential gaming in our market areas, we believe that competition will continue to increase in the future. We are unable to predict whether any of the efforts discussed above by commercial casino gaming operators, federally-recognized Indian tribes or groups seeking federal recognition as Indian tribes will be successful. We also are unable to predict whether on-line gaming legislation will be adopted on a federal basis, an intra-state basis in one or more states, other than the states of Nevada, New Jersey and Delaware, or among more than one state under a multi-state compact. In addition, we are unable to predict the impact of the Nevada, New Jersey and Delaware Internet gaming legislation or any such additional legislation on our business. Additionally, we are unable to predict whether on-line gaming or sports wagering will be expanded under existing law on an intra-state or national basis. If new gaming operations are established or existing gaming operations are expanded, we are uncertain of the impact that such gaming operations will have on our operations and our ability to meet our financial obligations.

Because the gaming industry in the northeastern United States has experienced seasonal fluctuations in the past, we also may experience seasonal variations in our revenues and operating results that could adversely affect our cash flows.

The gaming industry in the northeastern United States is seasonal in nature, with peak gaming activities often occurring during the months of May through August. Similarly, peak gaming activities at Mohegan Sun often occur during the months of

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May through August. As a result of these seasonal fluctuations, we likely will continue to experience seasonal variations in our quarterly revenues and operating results that could result in decreased cash flows during periods in which gaming activity is not at peak levels. These variations in quarterly revenues and operating results could adversely affect our financial condition.

Negative conditions affecting the lodging industry may have an adverse effect on our revenues and cash flows.

We depend on revenues generated from the hotel at Mohegan Sun, together with revenues generated from other portions of Mohegan Sun, to meet our financial obligations and fund our operations. Revenues generated from our hotel are primarily subject to conditions affecting our gaming operations, but also are subject to the lodging industry in general, and as a result, our financial performance and cash flows may be affected not only by the conditions in the gaming industry, but also by those in the lodging industry. Some of these conditions are as follows:

• changes in the local, regional or national economic climate;

• changes in local conditions such as an oversupply of hotel properties;

• decreases in the level of demand for hotel rooms and related services;

• the attractiveness of our hotel to patrons and competition from comparable hotels;

• cyclical over-building in the hotel industry;

• changes in travel patterns;

• public health concerns affecting public accommodations or travel generally or regionally;

• changes in room rates and increases in operating costs due to inflation and other factors; and

• the periodic need to repair and renovate the hotel.

The lingering effects of the most recent economic recession have had a negative impact on the lodging industry and on our financial results. The continuation of, or adverse changes in, these conditions could further adversely affect our hotel's financial performance and results of operations.

Our obligations under the relinquishment agreement could affect adversely our financial condition and prevent us from fulfilling our financial obligations.

Pursuant to the terms of the relinquishment agreement, we are required, among other things, to pay TCA 5% of certain revenues (as defined under the relinquishment agreement) generated by certain areas of Mohegan Sun during the 15-year period which commenced on January 1, 2000. Relinquishment payments totaled $49.5 million, $51.1 million and $54.3 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

This obligation consumes a significant portion of our operating cash flows that might otherwise be available for, among other things, interest payments, capital expenditures, distributions to the Tribe, working capital needs and debt reduction. As a result, our flexibility in planning for, or reacting to, changes in our business and the gaming industry in general is reduced. This may place us at a disadvantage compared to our competitors that do not have such an obligation.

Our renovation projects may face significant inherent risks that could adversely affect our financial condition.

Construction costs and completion dates for renovation projects are based on budgets, design documents and schedule estimates prepared with the assistance of architects, contractors and consultants. Such projects are inherently subject to significant development and construction risks, which could cause unanticipated increase in costs. These include the following:

• escalation of construction costs above anticipated amounts;

• shortage of material and skilled labor;

• weather interference;

• engineering problems;

• environmental problems;

• fire, flood and other natural disasters;

• labor disputes; and

• geological, construction, demolition, excavation and/or equipment problems.

Furthermore, while construction activities may be planned to minimize disruption, construction noise and debris and the temporary closing of some of the facility, such activities may disrupt our current operations. Unexpected construction delays could exacerbate or magnify these disruptions. We cannot assure you that any construction, renovation or expansion projects will not have a material adverse effect on our results of operations.

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We may suspend or elect not to proceed with construction, renovation or expansion projects once they have been undertaken, resulting in charges that could adversely affect our financial condition.

We may suspend, elect not to proceed with or fail to complete our construction, renovation or expansion projects once they have been undertaken. In such cases, we may be required to carry assets on our balance sheet for suspended projects or incur significant costs relating to design and construction work performed and materials purchased that may no longer be useful. In addition, our agreements or arrangements with third-parties relating to the suspension or termination of projects could cause us to incur additional fees and costs. Our suspension of, election not to proceed with, or failure to complete any construction, renovation or expansion projects may result in adverse effects to our financial condition.

The risks associated with operating expanded facilities and managing growth could have a material adverse effect on Mohegan Sun's future performance.

We may expand our facilities from time to time. We can provide no assurance that we will be successful in integrating the new amenities from such expansions into Mohegan Sun's current operations or in managing the expanded resort. Failure to successfully integrate and manage new services and amenities could have a material adverse effect on our results of operations and our ability to meet our financial obligations.

Risks Related to the Indian Gaming Industry

Gaming is a highly regulated industry, and changes in applicable laws or failure to maintain licenses and approvals could have a material adverse effect on the Tribe's and our ability to conduct gaming, and thus on our operations and our ability to meet our financial obligations.

Gaming on the Tribe's reservation is regulated extensively by federal, state and tribal regulatory agencies, including the NIGC and agencies of the State of Connecticut, such as the Department of Consumer Protection's Gaming Division and Division of Liquor Control and the State Police. As is the case with any casino, changes in applicable laws and regulations could limit or materially affect the types of gaming that may be conducted, or services provided, by us and the revenues realized therefrom.

Currently, the operation of gaming on Indian tribal lands is subject to IGRA. Legislation has been introduced in Congress from time to time with the intent of modifying a variety of perceived deficiencies with IGRA or the Indian Reorganization Act of 1934 under which land can be acquired for tribes for various purposes, including gaming. Certain proposals that have been considered would be prospective in effect and contain clauses that would grandfather existing Indian tribal gaming operations such as Mohegan Sun. However, legislation also has been proposed from time to time which would have the effect of repealing many of the key provisions of IGRA and prohibiting the continued operation of particular classes of gaming on Indian tribal reservations in states where such gaming is not otherwise allowed on a commercial basis. While none of the substantive proposed amendments to IGRA have been enacted, we cannot predict the effects of future legislative acts. In the event that Congress passes prohibitory legislation that does not include any grandfathering exemption for existing Indian tribal gaming operations, and if such legislation is sustained in the courts against tribal challenge, our ability to meet our financial obligations would be materially and adversely affected.

In addition, under federal law, gaming on Indian tribal lands is dependent on the permissibility under state law of specific forms of gaming or similar activities, and gaming at Mohegan Sun is dependent on the perpetual tribal-state compact between the Mohegan Tribe and State of Connecticut. Adverse decisions or legal actions with respect to gaming or the Mohegan Compact may have an adverse effect on our ability to conduct our gaming operations.

A change in our current tax-exempt status, and that of our subsidiaries, could reduce our cash flows and have a material adverse effect on our operations and our ability to meet our financial obligations.

Based on current interpretation of the Internal Revenue Code of 1986, as amended, we, the Tribe and certain of our subsidiaries are not subject to U.S. federal income taxes. However, we can provide no assurance that Congress or the Internal Revenue Service will not reverse or modify the exemption for Indian tribes from U.S. federal income taxation. A change in the tax law could have a material adverse effect on our financial performance.

Risks Related to Mohegan Sun at Pocono Downs

The adoption of modifications to the Pennsylvania Gaming Act or other applicable laws in the Commonwealth of Pennsylvania could negatively impact our operations and expected profitability.

Changes in applicable laws or regulations, tax rates or the enforcement of applicable laws and regulations in the Commonwealth of Pennsylvania could limit or materially affect the types of gaming we may conduct and the services we may provide at Mohegan Sun at Pocono Downs or the profitability of such operations. Our ability to continue to operate Mohegan Sun at Pocono Downs also could be adversely affected by such legal or regulatory changes.

29

If Mohegan Sun at Pocono Downs is not able to compete successfully with existing and potential competitors, we may not be able to generate sufficient cash flows for our operations or to fulfill our financial obligations.

Mohegan Sun at Pocono Downs faces competition from several gaming facilities in the Commonwealth of Pennsylvania, as well as neighboring states. Our closest competitors are Mount Airy and Sands Bethlehem, both of which are located in Northeastern Pennsylvania, approximately 40 miles and 70 miles from Mohegan Sun at Pocono Downs, respectively. The development of other gaming facilities in the Commonwealth of Pennsylvania also may impact the competitive environment for Mohegan Sun at Pocono Downs.

In addition to existing slot machine and table game operations in the Commonwealth of Pennsylvania, Mohegan Sun at Pocono Downs faces competition from the VLT facility at the Monticello Raceway in Monticello, New York, approximately 90 miles from Mohegan Sun at Pocono Downs, as well as future competition from the proposed Montreign Resort Casino in Thompson, New York, which will be owned and operated by the same operator of the VLT facility at the Monticello Raceway and located approximately 175 miles from Mohegan Sun at Pocono Downs. Additionally, Mohegan Sun at Pocono Downs faces competition from Tioga Downs Casino in Nichols, New York, approximately 100 miles from Mohegan Sun at Pocono Downs. Expanded gaming in the states of Maryland, Ohio, New Jersey, Delaware and West Virginia may affect overall gaming in the Commonwealth of Pennsylvania, the OTW facilities and other gaming facilities with which Mohegan Sun at Pocono Downs compete for patrons.

We are unable to predict the impact of existing and potential competition in our market area and its impact on our operations and ability to meet our financial obligations.

Our operation of Mohegan Sun at Pocono Downs subjects us to regulation and enforcement by various state agencies.

As owner and operator of Mohegan Sun at Pocono Downs, we are subject to extensive state regulation by the PGCB, the Pennsylvania State Harness Racing Commission, or the PSHRC, and other state regulatory agencies, such as the Liquor Control Board. Applicable rules and regulations may require that we obtain and periodically renew a variety of licenses, registrations, permits and approvals to conduct our operations. Regulatory agencies may, for any reason set forth in the applicable legislation, rules and regulations, limit, condition, suspend, deny or revoke our license to conduct our operations as intended. The sale of alcoholic beverages at our properties is subject to licensing, control and regulation by state and local agencies in Pennsylvania, including the Pennsylvania Liquor Control Board. The liquor agencies have broad powers to limit, condition, suspend or revoke any liquor license. We can provide no assurance that we will be able to continually renew all registrations, permits, approvals or licenses necessary to conduct our operations in the Commonwealth of Pennsylvania as intended. Any of these events, including any disciplinary action with respect to our liquor license, or any changes in applicable laws or regulations or the enforcement thereof, could, and any failure to renew or revocation of our liquor license would, have a material adverse effect on our business, financial condition and results of operations.

Changes in or the issuance of additional regulations by the PGCB may adversely affect our operations at Mohegan Sun at Pocono Downs.

Under the Pennsylvania Gaming Act, the PGCB has extensive authority to regulate gaming activities. Casino gaming is still a relatively new industry in the Commonwealth of Pennsylvania and many of the rules and regulations governing casino gaming are still evolving. New or changing regulations could adversely affect our gaming operations at Mohegan Sun at Pocono Downs.

Changes in or the issuance of additional regulations by the PSHRC may adversely affect our operations at Mohegan Sun at Pocono Downs.

Under the Pennsylvania Race Horse Industry Reform Act, the PSHRC has extensive authority to regulate harness racing activities. While harness racing is a well-established industry in the Commonwealth of Pennsylvania, new or changing regulations could adversely affect our harness racing operations at Mohegan Sun at Pocono Downs. Our inability or failure to conduct harness racing operations at Mohegan Sun at Pocono Downs in accordance with applicable regulations could adversely affect our ability to conduct gaming operations at Mohegan Sun at Pocono Downs.

Item 1B. Unresolved Staff Comments.

None.

30

Item 2. Properties.

Mohegan Sun is located on a 185-acre site on the Tribe’s reservation in Southeastern Connecticut, adjacent to Uncasville, Connecticut. The land upon which Mohegan Sun is located is held in trust for the Tribe by the United States. Mohegan Sun has its own exit from Connecticut Route 2A, providing patrons with direct access to Interstates 395 and 95, the main highways connecting New York City, New York, Boston, Massachusetts, and Providence, Rhode Island. Mohegan Sun is approximately 125 miles from New York City, 100 miles from Boston and 50 miles from Providence.

The land upon which Mohegan Sun is located is leased from the Tribe. The term of the lease is 25 years with an option, exercisable by us, to extend the term for one additional 25-year period provided that we are not in default under the lease. Upon termination of the lease, we will be required to surrender to the Tribe possession of the property and improvements, excluding any equipment, furniture, fixtures or other personal property. The lease requires us to pay the Tribe a nominal annual rental fee and assume all costs and expenses of owning, operating, constructing, maintaining, repairing, replacing and insuring the property.

We also have entered into various lease agreements with the Tribe for properties that are utilized for parking and access to Mohegan Sun.

The Mohegan Sun Golf Club is located in Sprague and Franklin, Connecticut, approximately 15 miles from Mohegan Sun.

Mohegan Sun at Pocono Downs is located on a 400-acre site in Plains Township, Pennsylvania. We also own OTW facilities located in Carbondale and Lehigh Valley (Allentown), Pennsylvania, and lease an OTW facility located in East Stroudsburg, Pennsylvania.

Salishan-Mohegan owns land located in Clark County, Washington, for the purposes of developing a proposed casino to be owned by the Cowlitz Tribe. The land shall be transferred to the Cowlitz Tribe or the United States upon the underlying property being accepted to be taken into trust by the United States Department of the Interior.

Item 3. Legal Proceedings.

We are a defendant in various litigation matters resulting from our normal course of business. We believe that the aggregate liability, if any, arising from such litigations will not have a material impact on our financial position, results of operations or cash flows.

Item 4. Mine Safety Disclosures.

Not applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

We have not issued or sold any equity securities.

Item 6. Selected Financial Data.

	As of or for the Fiscal Years Ended September 30,
	2014			2013			2012			2011			2010
Operating Results:
Gross revenues	$	1,391,662		$	1,435,885		$	1,498,510		$	1,527,188		$	1,539,626
Promotional allowances	(98,944		)	(95,857		)	(99,197		)	(108,809		)	(117,664		)
Net revenues	$	1,292,718		$	1,340,028		$	1,399,313		$	1,418,379		$	1,421,962
Income from operations (1)	$	181,408		$	229,506		$	225,424		$	238,404		$	139,257
Other expenses, net (2)	(205,966		)	(181,964		)	(164,183		)	(126,561		)	(131,803		)
Net income (loss)	(24,558		)	47,542			61,241			111,843			7,454
Loss attributable to non-controlling interests	380			2,784			2,019			2,134			2,258
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	50,326		$	63,260		$	113,977		$	9,712
Other Data:
Interest expense, net of capitalized interest	$	147,933		$	170,150		$	146,057		$	117,710		$	116,784
Capital expenditures incurred	$	32,628		$	66,053		$	43,642		$	46,477		$	43,544
Net cash flows provided by operating activities	$	73,016		$	102,951		$	176,997		$	194,278		$	170,506
Balance Sheet Data:
Total assets	$	2,055,960		$	2,136,150		$	2,236,146		$	2,203,196		$	2,200,623
Long-term debt and capital leases, net of current portions	$	1,701,723		$	1,654,731		$	1,655,943		$	823,951		$	1,601,471

 __________

(1) Operating costs and expenses, included in income from operations, include non-cash relinquishment liability reassessment credits of $1.9 million, $249,000, $11.4 million, $8.8 million and $26.5 million in fiscal 2014, 2013, 2012, 2011 and 2010, respectively. A discussion of the relinquishment liability may be found in Notes 2 and 11 to our consolidated financial statements, beginning on page F-1 of this Annual Report on Form 10-K. Operating costs and expenses also include impairment charges of $5.0 million and $58.1 million in fiscal 2014 and 2010, respectively. A discussion of these impairment charges may be found in Note 4 to our consolidated financial statements, beginning on page F-1 of this Annual Report on Form 10-K.

(2) Other expenses, net, include accretion of discount to the relinquishment liability of $2.2 million, $5.0 million, $8.2 million, $11.4 million and $15.4 million in fiscal 2014, 2013, 2012, 2011 and 2010, respectively. A discussion of the accretion of discount to the relinquishment liability may be found in Notes 2 and 11 to our consolidated financial statements, beginning on page F-1 of this Annual Report on Form 10-K. Other expenses, net, also include losses on early extinguishment of debt of $62.0 million, $11.5 million and $14.3 million in fiscal 2014, 2013 and 2012, respectively. In addition, other expenses, net, include interest expense, net of capitalized interest.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our consolidated financial statements and related notes beginning on page F-1 of this Annual Report on Form 10-K, Item 1. Business and Item 6. Selected Financial Data.

Explanation of Key Financial Statement Captions

Gross Revenues

Our gross revenues are derived primarily from the following four sources:

• gaming revenues, which include revenues from slot machines, table games, poker, live harness racing and racebook operations, including pari-mutuel wagering revenues from our racebook operations at Mohegan Sun and off-track wagering facilities in Pennsylvania;

• food and beverage revenues;

• hotel revenues; and

• retail, entertainment and other revenues, which primarily include revenues from our arena, gasoline and convenience centers, retail shops and basketball and golf operations.

The largest component of revenues is gaming revenues, which are recognized as amounts wagered less prizes paid out, and comprised primarily of revenues from slot machines and table games. Revenues from slot machines are the largest component of gaming revenues. Gross slot revenues, also referred to as gross slot win, represent all amounts wagered by patrons on slot machines reduced by: (1) free promotional slot plays redeemed, (2) winnings paid out and (3) slot tickets issued. Pursuant to the

32

Mohegan Compact and requirements of our Category One slot machine license, we report gross slot revenues and other statistical information related to slot machine operations to the State of Connecticut and the Commonwealth of Pennsylvania. On a monthly basis, we also post such information on our website at www.mtga.com.

Other commonly used slot machine related terms include base jackpots, progressive slot machines, progressive jackpots, net slot revenues, slot handle, gross slot hold percentage, net slot hold percentage, rated players and slot win efficiency. Base jackpots represent the fixed minimum amount of payouts for a specific combination. We record base jackpots as reductions to revenues when we become obligated to pay such jackpots. Progressive slot machines retain a portion of each amount wagered and aggregate the retained amounts with similar amounts from other slot machines in order to create one-time payouts that are substantially larger than those paid in the ordinary course of play. We refer to such aggregated amounts as progressive jackpots. Wide-area progressive jackpot amounts are paid by third-party vendors and remitted as a weekly payment to each vendor based on a percentage of slot handle for each wide-area progressive slot machine. We accrue in-house progressive jackpot amounts until paid, and such accrued amounts are deducted from gross slot revenues, along with wide-area progressive jackpot amounts to arrive at net slot revenues, also referred to as net slot win. Net slot revenues are included in gaming revenues in our consolidated statements of income (loss). Slot handle is the total amount wagered by patrons on slot machines, including free promotional slot plays. Gross slot hold percentage is gross slot revenues as a percentage of slot handle. Net slot hold percentage is net slot revenues as a percentage of slot handle. Rated players are patrons whose gaming activities are tracked under our Momentum program. Slot win efficiency is a measure of our percentage of gross slot revenues in a market area compared to the percentage of the slot machines we operate in that market area.

Commonly used table games related terms include table game revenues, table game drop and table game hold percentage. Table game revenues represent the closing table game inventory plus table game drop and credit slips for cash, chips or tokens returned to the casino cage, less opening table game inventory, discounts provided on patron losses, free bet coupons and chip fills to the tables. Table game drop is the total amount of cash, free bet coupons, cash advance drafts, customer deposit withdrawals, safekeeping withdrawals and credits issued at tables. Table game hold percentage is table game revenues as a percentage of table game drop.

Revenues from food and beverage, hotel, retail, entertainment and other services are recognized at the time such service is performed. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rental revenues are recognized in the periods in which the tenants exceed their respective percentage rent thresholds.

Promotional Allowances

We operate a program, without membership fees, for patrons at Mohegan Sun, Mohegan Sun at Pocono Downs and our managed property, Resorts Casino Hotel in Atlantic City, New Jersey, or Resorts Atlantic City. This program provides complimentary food and beverage, hotel, retail, entertainment and other services to patrons, as applicable, based on Momentum Dollars that are awarded for patrons’ gaming activities. Momentum Dollars may be utilized to purchase, among other things, items at retail stores and restaurants located within Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. Momentum Dollars also may be utilized at The Shops at Mohegan Sun and the Mohegan Sun gasoline and convenience center, as well as to purchase hotel services and tickets to entertainment events held at facilities located at Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. The retail value of these complimentary items is included in gross revenues when redeemed at facilities operated by us and then deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of complimentary items redeemed at third-party outlets is charged to gaming costs and expenses.

In addition, we offer ongoing promotional coupon programs to patrons for the purchase of food and beverage, hotel and retail amenities offered within Mohegan Sun and Mohegan Sun at Pocono Downs, as applicable. The retail value of items or services purchased with coupons at facilities operated by us is included in gross revenues and the respective coupon value is deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of coupons redeemed at third-party outlets is charged to gaming costs and expenses.

Gaming Costs and Expenses

Gaming costs and expenses primarily include portions of gaming revenues that must be paid to the State of Connecticut and the Pennsylvania Gaming Control Board, or the PGCB. Gaming costs and expenses also include, among other things, payroll costs, expenses associated with the operation of slot machines, table games, poker, live harness racing and racebook, certain marketing expenditures and promotional expenses related to Momentum Dollar and coupon redemptions.

33

Income from Operations

Income from operations represents net revenues less total operating costs and expenses. Income from operations excludes accretion of discount to the relinquishment liability, interest income and expense, loss on early extinguishment of debt, other non-operating income and expense and loss attributable to non-controlling interests.

Reassessment and Accretion of Discount to the Relinquishment Liability

In February 1998, we entered into a relinquishment agreement with Trading Cove Associates, or TCA. The relinquishment agreement provides, among other things, that we make certain payments to TCA out of, and determined as a percentage of, revenues, as defined under the relinquishment agreement, generated by Mohegan Sun over a 15-year period from January 1, 2000 through December 31, 2014. We have recorded a relinquishment liability based on the estimated present value of our obligations under the relinquishment agreement. We reassess projected revenues and consequently the relinquishment liability: (1) annually in conjunction with our budgeting process or (2) when necessary to account for material increases or decreases in projected revenues over the relinquishment period. In addition, we recognize a quarterly accretion to the relinquishment liability to reflect the impact of the time value of money. Since the calculation of this liability requires a high level of estimates and judgments (including those related to projected revenues and impact and timing of future competition), future events that affect such estimates and judgments may cause the actual liability to materially differ from the current estimate.

Results of Operations

Summary Operating Results

As of September 30, 2014, we own and operate, either directly or through wholly-owned subsidiaries, Mohegan Sun, the Connecticut Sun franchise, and the Mohegan Sun Golf Club, or collectively, the Connecticut facilities, and the Pennsylvania facilities. Substantially all of our revenues are derived from these operations. The Connecticut Sun franchise and the Mohegan Sun Golf Club are aggregated with the Mohegan Sun operating segment because these operations all share similar economic characteristics, which is to generate gaming and entertainment revenues by attracting patrons to Mohegan Sun. Our executive officers review and assess the performance and operating results and determine the proper allocation of resources to the Connecticut facilities and the Pennsylvania facilities on a separate basis. Accordingly, we have two separate reportable segments: (1) Mohegan Sun, which includes the operations of the Connecticut facilities and (2) Mohegan Sun at Pocono Downs, which includes the operations of the Pennsylvania facilities. Our operations related to investments in unconsolidated affiliates and certain other Corporate and management operations have not been identified as separate reportable segments, therefore, these operations are included in Corporate and other in the following segment disclosures to reconcile to consolidated results.

The following table summarizes our results on a property basis (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
										Variance						Percentage Variance
	2014			2013			2012			14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Net revenues:
Mohegan Sun	$	995,100		$	1,042,078		$	1,084,017		$	(46,978	)	$	(41,939	)	(4.5	)%	(3.9	)%
Mohegan Sun at Pocono Downs	296,578			296,648			314,999			(70		)	(18,351		)	—	%	(5.8	)%
Corporate and other	5,391			1,302			297			4,089			1,005			314.1	%	338.4	%
Inter-segment revenues	(4,351		)	—			—			(4,351		)	—			(100.0	)%	—
Total	$	1,292,718		$	1,340,028		$	1,399,313		$	(47,310	)	$	(59,285	)	(3.5	)%	(4.2	)%
Income (loss) from operations:
Mohegan Sun	$	181,325		$	212,680		$	199,358		$	(31,355	)	$	13,322		(14.7	)%	6.7	%
Mohegan Sun at Pocono Downs	36,956			43,763			43,296			(6,807		)	467			(15.6	)%	1.1	%
Corporate and other	(36,873		)	(26,937		)	(17,230		)	(9,936		)	(9,707		)	(36.9	)%	(56.3	)%
Total	$	181,408		$	229,506		$	225,424		$	(48,098	)	$	4,082		(21.0	)%	1.8	%
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	50,326		$	63,260		$	(74,504	)	$	(12,934	)	N.M.		(20.4	)%
Operating margin:
Mohegan Sun	18.2		%	20.4		%	18.4		%	(2.2		)%	2.0		%	(10.8	)%	10.9	%
Mohegan Sun at Pocono Downs	12.5		%	14.8		%	13.7		%	(2.3		)%	1.1		%	(15.5	)%	8.0	%
Total	14.0		%	17.1		%	16.1		%	(3.1		)%	1.0		%	(18.1	)%	6.2	%

__________

N.M. - Not Meaningful.

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The most significant factors and trends that we believe impacted our operating performance were as follows:

• a prolonged sluggish regional economic environment and its impact on consumer discretionary spending;

• more competitive gaming markets;

• the November 2013 opening of hotel operations at Mohegan Sun at Pocono Downs;

• workforce reductions and other cost saving initiatives implemented in September 2012 at Mohegan Sun and March 2013 at Mohegan Sun at Pocono Downs;

• continued changes in operations designed to improve profitability; and

• continued focus on managing expenses and enhancing operating efficiencies.

Other factors that affected our financial performance were as follows:

• losses on early extinguishment of debt of $62.0 million, $11.5 million and $14.3 million in fiscal 2014, 2013 and 2012, respectively;

• lower interest expense in fiscal 2014;

• higher Corporate expenses in fiscal 2014 and 2013;

• higher interest expense in fiscal 2013;

• severance charges of $12.5 million in fiscal 2012; and

• a non-cash relinquishment liability reassessment credit of $11.4 million in fiscal 2012.

Net revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily as a result of lower gaming revenues at Mohegan Sun.

Net revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily due to lower slot revenues at both Mohegan Sun and Mohegan Sun at Pocono Downs.

Income from operations for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily due to the reduction in net revenues, combined with higher Corporate expenses.

Income from operations for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased as a result of lower operating costs and expenses resulting, in part, from workforce reductions and other cost saving initiatives, as well as changes in operations designed to improve profitability and focus on managing expenses and enhancing operating efficiencies. These results were partially offset by the reduction in net revenues and higher Corporate expenses.

Net income attributable to the Authority for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily due to the loss on early extinguishment of debt, combined with the reduction in income from operations. These results were partially offset by lower interest expense.

Net income attributable to the Authority for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily as a result of higher interest expense, partially offset by the increase in income from operations.

Mohegan Sun

Revenues

Revenues consisted of the following (in thousands):

	For the Fiscal Years Ended September 30,
							Variance						Percentage Variance
	2014		2013		2012		14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Gaming	$	858,780	$	911,180	$	957,657	$	(52,400	)	$	(46,477	)	(5.8	)%	(4.9	)%
Food and beverage	62,940		60,026		66,651		2,914			(6,625		)	4.9	%	(9.9	)%
Hotel	42,921		40,873		39,609		2,048			1,264			5.0	%	3.2	%
Retail, entertainment and other	108,776		108,508		103,190		268			5,318			0.2	%	5.2	%
Gross revenues	1,073,417		1,120,587		1,167,107		(47,170		)	(46,520		)	(4.2	)%	(4.0	)%
Less-Promotional allowances	78,317		78,509		83,090		(192		)	(4,581		)	(0.2	)%	(5.5	)%
Net revenues	$	995,100	$	1,042,078	$	1,084,017	$	(46,978	)	$	(41,939	)	(4.5	)%	(3.9	)%

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The following table summarizes the percentage of gross revenues from each of the four revenue sources:

	For the Fiscal Years Ended September 30,
	2014		2013		2012
Gaming	80.0	%	81.3	%	82.1	%
Food and beverage	5.9	%	5.4	%	5.7	%
Hotel	4.0	%	3.6	%	3.4	%
Retail, entertainment and other	10.1	%	9.7	%	8.8	%
Total	100.0	%	100.0	%	100.0	%

Promotional Allowances

The retail value of providing promotional allowances was included in gross revenues as follows (in thousands):

	For the Fiscal Years Ended September 30,
							Variance						Percentage Variance
	2014		2013		2012		14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Food and beverage	$	26,330	$	22,747	$	26,594	$	3,583		$	(3,847	)	15.8	%	(14.5	)%
Hotel	13,301		13,798		14,126		(497		)	(328		)	(3.6	)%	(2.3	)%
Retail, entertainment and other	38,686		41,964		42,370		(3,278		)	(406		)	(7.8	)%	(1.0	)%
Total	$	78,317	$	78,509	$	83,090	$	(192	)	$	(4,581	)	(0.2	)%	(5.5	)%

The estimated cost of providing promotional allowances was included in gaming costs and expenses as follows (in thousands):

	For the Fiscal Years Ended September 30,
							Variance						Percentage Variance
	2014		2013		2012		14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Food and beverage	$	26,143	$	22,893	$	25,950	$	3,250		$	(3,057	)	14.2	%	(11.8	)%
Hotel	6,789		7,215		7,753		(426		)	(538		)	(5.9	)%	(6.9	)%
Retail, entertainment and other	34,601		38,346		38,471		(3,745		)	(125		)	(9.8	)%	(0.3	)%
Total	$	67,533	$	68,454	$	72,174	$	(921	)	$	(3,720	)	(1.3	)%	(5.2	)%

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The following table presents data related to gaming operations (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
										Variance						Percentage Variance
	2014			2013			2012			14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Slots:
Handle	$	7,158,030		$	7,527,822		$	8,182,177		$	(369,792	)	$	(654,355	)	(4.9	)%	(8.0	)%
Gross revenues	$	582,103		$	618,680		$	675,117		$	(36,577	)	$	(56,437	)	(5.9	)%	(8.4	)%
Net revenues	$	561,601		$	595,302		$	647,966		$	(33,701	)	$	(52,664	)	(5.7	)%	(8.1	)%
Free promotional slot plays (1)	$	65,185		$	66,261		$	64,596		$	(1,076	)	$	1,665		(1.6	)%	2.6	%
Weighted average number of machines (in units)	5,470			5,553			6,038			(83		)	(485		)	(1.5	)%	(8.0	)%
Hold percentage (gross)	8.1		%	8.2		%	8.3		%	(0.1		)%	(0.1		)%	(1.2	)%	(1.2	)%
Win per unit per day (gross) (in dollars)	$	292		$	305		$	306		$	(13	)	$	(1	)	(4.3	)%	(0.3	)%
Table games:
Drop	$	1,844,191		$	1,859,821		$	1,922,709		$	(15,630	)	$	(62,888	)	(0.8	)%	(3.3	)%
Revenues	$	283,413		$	300,099		$	291,348		$	(16,686	)	$	8,751		(5.6	)%	3.0	%
Weighted average number of games (in units)	288			285			311			3			(26		)	1.1	%	(8.4	)%
Hold percentage (2)	15.4		%	16.1		%	15.2		%	(0.7		)%	0.9		%	(4.3	)%	5.9	%
Win per unit per day (in dollars)	$	2,692		$	2,886		$	2,559		$	(194	)	$	327		(6.7	)%	12.8	%
Poker:
Revenues	$	9,838		$	9,867		$	11,280		$	(29	)	$	(1,413	)	(0.3	)%	(12.5	)%
Weighted average number of tables (in units)	42			42			42			—			—			—		—
Revenue per unit per day (in dollars)	$	643		$	644		$	734		$	(1	)	$	(90	)	(0.2	)%	(12.3	)%

 __________

(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.

Gaming revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily as a result of lower slot revenues which we believe was primarily due to a prolonged sluggish regional economic environment and competitive gaming market. The decline in gaming revenues also reflected lower table game revenues primarily driven by lower table game hold percentage.

Gaming revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily due to lower slot revenues which we believe was primarily driven by a sluggish regional economic environment and its impact on consumer discretionary spending, combined with increased competition. We believe the decrease in gaming revenues also reflected changes in operations designed to improve profitability. The decrease in slot revenues was partially offset by increased table game revenues which benefited from higher table game hold percentage.

The following table presents data related to food and beverage operations (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
							Variance						Percentage Variance
	2014		2013		2012		14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Meals served	2,951		2,798		3,252		153			(454		)	5.5	%	(14.0	)%
Average price per meal served (in dollars)	$	16.03	$	16.15	$	16.20	$	(0.12	)	$	(0.05	)	(0.7	)%	(0.3	)%

Food and beverage revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of the increase in meals served. The increase in meals served resulted from changes in promotional programs designed to improve profitability.

Food and beverage revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily due to the decline in meals served. The decline in meals served reflected the replacement of a Mohegan Sun-owned food and beverage outlet with a third-party operator.

37

The following table presents data related to hotel operations (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
										Variance						Percentage Variance
	2014			2013			2012			14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Rooms occupied	418			415			413			3			2			0.7	%	0.5	%
Occupancy rate	97.4		%	96.8		%	96.1		%	0.6		%	0.7		%	0.6	%	0.7	%
Average daily room rate (in dollars)	$	97		$	94		$	91		$	3		$	3		3.2	%	3.3	%
Revenue per available room (in dollars)	$	95		$	91		$	87		$	4		$	4		4.4	%	4.6	%

Hotel revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of an increase in hotel occupancy by higher paying transient and group guests.

Hotel revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased primarily due to an increase in hotel occupancy by higher paying transient guests.

The following table presents data related to entertainment operations (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
							Variance					Percentage Variance
	2014		2013		2012		14 vs. 13		13 vs. 12			14 vs. 13		13 vs. 12
Arena events (in events)	109		108		125		1		(17		)	0.9	%	(13.6	)%
Arena tickets	684		675		743		9		(68		)	1.3	%	(9.2	)%
Average price per arena ticket (in dollars)	$	54.88	$	53.58	$	44.05	$	1.30	$	9.53		2.4	%	21.6	%

Retail, entertainment and other revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year were relatively flat.

Retail, entertainment and other revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased primarily due to higher entertainment revenues resulting from the increase in average price per arena ticket. The increase in average price per arena ticket reflected an increase in the number of headliner shows held at the Mohegan Sun Arena.

Operating Costs and Expenses

Operating costs and expenses consisted of the following (in thousands):

	For the Fiscal Years Ended September 30,
										Variance						Percentage Variance
	2014			2013			2012			14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Gaming	$	488,293		$	507,069		$	555,664		$	(18,776	)	$	(48,595	)	(3.7	)%	(8.7	)%
Food and beverage	32,737			33,668			36,134			(931		)	(2,466		)	(2.8	)%	(6.8	)%
Hotel	15,287			14,339			14,293			948			46			6.6	%	0.3	%
Retail, entertainment and other	48,406			42,713			39,562			5,693			3,151			13.3	%	8.0	%
Advertising, general and administrative	159,300			163,440			167,968			(4,140		)	(4,528		)	(2.5	)%	(2.7	)%
Depreciation and amortization	66,686			68,342			69,912			(1,656		)	(1,570		)	(2.4	)%	(2.2	)%
(Gain) loss on disposition of assets	(10		)	222			68			(232		)	154			N.M.		226.5	%
Severance	—			(146		)	12,497			146			(12,643		)	100.0	%	N.M.
Impairment of Project Horizon	4,981			—			—			4,981			—			100.0	%	—
Relinquishment liability reassessment	(1,905		)	(249		)	(11,439		)	(1,656		)	11,190			(665.1	)%	97.8	%
Total	$	813,775		$	829,398		$	884,659		$	(15,623	)	$	(55,261	)	(1.9	)%	(6.2	)%

__________

N.M. - Not Meaningful.

Gaming costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily as a result of lower combined slot win and free promotional slot play contribution expenses commensurate with the decline in slot revenues. Gaming costs and expenses for the fiscal year ended September 30, 2014 also reflected reduced payroll costs and lower costs related to Momentum Dollar redemptions at third-party outlets. These results were partially offset by higher costs related to coupon redemptions atthird-party outlets. Expenses associated with the combined slot win and free promotional

38

slot play contributions totaled $146.5 million and $155.8 million for the fiscal years ended September 30, 2014 and 2013, respectively. Gaming costs and expenses as a percentage of gaming revenues were 56.9% and 55.6% for the fiscal years ended September 30, 2014 and 2013, respectively.

Gaming costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily due to reduced payroll costs resulting from our September 2012 workforce reduction and lower combined slot win and free promotional slot play contribution expenses commensurate with the decline in slot revenues. The reduction in gaming costs and expenses also resulted from changes in operations designed to improve profitability, including lower casino marketing and promotional expenditures. In addition, the decline in gaming costs and expenses reflected lower costs related to Momentum Dollar redemptions at Mohegan Sun-owned facilities. Expenses associated with the combined slot win and free promotional slot play contributions totaled $155.8 million and $173.1 million for the fiscal years ended September 30, 2013 and 2012, respectively. Gaming costs and expenses as a percentage of gaming revenues were 55.6% and 58.0% for the fiscal years ended September 30, 2013 and 2012, respectively.

Food and beverage costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily due to increased use of food and beverage complimentaries, resulting in higher amounts of food and beverage costs being allocated to gaming costs and expenses. The reduction in food and beverage costs and expenses also resulted from lower payroll costs.

Food and beverage costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily as a result of lower payroll costs and cost of goods sold. These results were partially offset by reduced use of food and beverage complimentaries, resulting in lower amounts of food and beverage costs being allocated to gaming costs and expenses.

Hotel costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of higher payroll costs, combined with reduced use of hotel complimentaries, resulting in lower amounts of hotel costs being allocated to gaming costs and expenses.

Hotel costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year were relatively flat.

Retail, entertainment and other costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily due to higher direct entertainment costs, combined with reduced use of retail, entertainment and other complimentaries, resulting in lower amounts of retail, entertainment and other costs being allocated to gaming costs and expenses. These results were partially offset by lower payroll costs and gasoline and retail cost of goods sold.

Retail, entertainment and other costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased primarily as a result of higher direct entertainment costs reflecting an increase in the number of headliner shows held at the Mohegan Sun Arena, combined with increased gasoline cost of goods sold. These results were partially offset by lower arena expenses due to the reduction in the overall number of events held at the Mohegan Sun Arena.

Advertising, general and administrative costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily as a result of reductions in payroll and insurance costs, as well as expenses associated with services provided by the State of Connecticut. These results were partially offset by higher utility costs.

Advertising, general and administrative costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily due to lower payroll costs and certain other expenditures, reflecting, in part, our workforce reduction and other cost saving initiatives implemented in September 2012.

Depreciation and amortization expenses for the fiscal years ended September 30, 2014 and 2013 compared to the prior fiscal years decreased due to assets becoming fully depreciated.

Severance for the fiscal year ended September 30, 2013 resulted from adjustments to the initial estimates utilized under our September 2012 workforce reduction plan.

Impairment of Project Horizon for the fiscal year ended September 30, 2014 resulted from a further re-evaluation of our modified plan with respect to the development of the new hotel element of the project, including the final location of the planned hotel. Based on our re-evaluation and new design plans, including the final location of the planned hotel, we determined that certain design and earthwork related assets did not have any future benefit, and, accordingly, we recorded the related $5.0 million impairment charge. Of the $5.0 million impairment charge recognized in the fiscal year ended September 30, 2014, approximately $2.0 million relates to conceptual design work associated with the original hotel and should have been written-off in conjunction

39

with the impairment charge recognized in fiscal 2010. We concluded that this error was not material to our previously issued consolidated financial statements and the resulting correction is not material to the accompanying consolidated financial statements.

Relinquishment liability reassessments for the fiscal years ended September 30, 2014 and 2013 had the effect of reducing operating costs and expenses. The relinquishment liability reassessment credits resulted from reductions in Mohegan Sun revenues and revenue projections as of the end of each respective fiscal year compared to projections as of the end of the related prior fiscal year. Our accounting policy is to reassess Mohegan Sun revenues and revenue projections, and consequently the relinquishment liability, at least annually in conjunction with our budgeting process or when necessary to account for material increases or decreases in Mohegan Sun revenues and revenue projections over the remaining relinquishment period, which expires on December 31, 2014.

Mohegan Sun at Pocono Downs

Revenues

Revenues consisted of the following (in thousands):

	For the Fiscal Years Ended September 30,
							Variance						Percentage Variance
	2014		2013		2012		14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Gaming	$	274,783	$	279,022	$	296,901	$	(4,239	)	$	(17,879	)	(1.5	)%	(6.0	)%
Food and beverage	28,715		26,225		25,498		2,490			727			9.5	%	2.9	%
Hotel (1)	4,389		—		—		4,389			—			100.0	%	—
Retail, entertainment and other	9,219		8,661		8,630		558			31			6.4	%	0.4	%
Gross revenues	317,106		313,908		331,029		3,198			(17,121		)	1.0	%	(5.2	)%
Less-Promotional allowances	20,528		17,260		16,030		3,268			1,230			18.9	%	7.7	%
Net revenues	$	296,578	$	296,648	$	314,999	$	(70	)	$	(18,351	)	—	%	(5.8	)%

 ___________

(1) Hotel operations commenced on November 15, 2013.

The following table summarizes the percentage of gross revenues from each of the four revenue sources:

	For the Fiscal Years Ended September 30,
	2014		2013		2012
Gaming	86.6	%	88.9	%	89.7	%
Food and beverage	9.1	%	8.3	%	7.7	%
Hotel	1.4	%	—		—
Retail, entertainment and other	2.9	%	2.8	%	2.6	%
Total	100.0	%	100.0	%	100.0	%

Promotional Allowances

The retail value of providing promotional allowances was included in gross revenues as follows (in thousands):

	For the Fiscal Years Ended September 30,
							Variance					Percentage Variance
	2014		2013		2012		14 vs. 13		13 vs. 12			14 vs. 13		13 vs. 12
Food and beverage	$	16,864	$	15,576	$	14,276	$	1,288	$	1,300		8.3	%	9.1	%
Hotel	1,419		—		—		1,419		—			100.0	%	—
Retail, entertainment and other	2,245		1,684		1,754		561		(70		)	33.3	%	(4.0	)%
Total	$	20,528	$	17,260	$	16,030	$	3,268	$	1,230		18.9	%	7.7	%

40

The estimated cost of providing promotional allowances was included in gaming costs and expenses as follows (in thousands):

	For the Fiscal Years Ended September 30,
							Variance					Percentage Variance
	2014		2013		2012		14 vs. 13		13 vs. 12			14 vs. 13		13 vs. 12
Food and beverage	$	11,793	$	11,232	$	11,135	$	561	$	97		5.0	%	0.9	%
Hotel	2,190		—		—		2,190		—			100.0	%	—
Retail, entertainment and other	2,171		1,808		2,015		363		(207		)	20.1	%	(10.3	)%
Total	$	16,154	$	13,040	$	13,150	$	3,114	$	(110	)	23.9	%	(0.8	)%

The following table presents data related to gaming operations (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
										Variance						Percentage Variance
	2014			2013			2012			14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Slots:
Handle	$	2,631,689		$	2,897,095		$	2,976,891		$	(265,406	)	$	(79,796	)	(9.2	)%	(2.7	)%
Gross revenues	$	218,181		$	220,127		$	237,788		$	(1,946	)	$	(17,661	)	(0.9	)%	(7.4	)%
Net revenues	$	218,175		$	220,151		$	237,800		$	(1,976	)	$	(17,649	)	(0.9	)%	(7.4	)%
Free promotional slot plays (1)	$	48,848		$	76,736		$	61,790		$	(27,888	)	$	14,946		(36.3	)%	24.2	%
Weighted average number of machines (in units)	2,331			2,332			2,332			(1		)	—			—	%	—
Hold percentage (gross)	8.3		%	7.6		%	8.0		%	0.7		%	(0.4		)%	9.2	%	(5.0	)%
Win per unit per day (gross) (in dollars)	$	256		$	259		$	279		$	(3	)	$	(20	)	(1.2	)%	(7.2	)%
Table games:
Drop	$	213,736		$	197,173		$	211,244		$	16,563		$	(14,071	)	8.4	%	(6.7	)%
Revenues	$	41,557		$	39,547		$	39,163		$	2,010		$	384		5.1	%	1.0	%
Weighted average number of games (in units)	68			66			66			2			—			3.0	%	—
Hold percentage (2)	19.4		%	20.1		%	18.5		%	(0.7		)%	1.6		%	(3.5	)%	8.6	%
Win per unit per day (in dollars)	$	1,684		$	1,642		$	1,620		$	42		$	22		2.6	%	1.4	%
Poker:
Revenues	$	3,404		$	3,957		$	3,839		$	(553	)	$	118		(14.0	)%	3.1	%
Weighted average number of tables (in units)	18			18			18			—			—			—		—
Revenue per unit per day (in dollars)	$	518		$	602		$	583		$	(84	)	$	19		(14.0	)%	3.3	%

 __________

(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.

Gaming revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily as a result of lower slot revenues which we believe was driven by a prolonged sluggish regional economic environment. We believe the decline in slot revenues also reflected continued changes in operations designed to improve profitability. These results were partially offset by higher table game revenues which benefited from the new hotel and convention center.

Gaming revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year declined primarily due to lower slot revenues. We believe the reduction in slot revenues reflected a sluggish regional economic environment due, in part, to increases in payroll and local property taxes, combined with construction disruptions associated with the hotel and convention center expansion. We believe the decline in gaming revenues also reflected changes in operations designed to improve profitability.

41

The following table presents data related to food and beverage operations (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
							Variance				Percentage Variance
	2014		2013		2012		14 vs. 13		13 vs. 12		14 vs. 13		13 vs. 12
Meals served	768		731		727		37		4		5.1	%	0.6	%
Average price per meal served (in dollars)	$	17.21	$	16.41	$	15.75	$	0.80	$	0.66	4.9	%	4.2	%

Food and beverage revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily due to the new hotel and convention center, combined with continued changes in promotional programs designed to improve profitability.

Food and beverage revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased primarily as a result of changes in operations designed to improve profitability.

The following table presents data related to hotel operations (in thousands, except where noted):

	For the Fiscal Years Ended September 30,
						Variance				Percentage Variance
	2014			2013	2012	14 vs. 13			13 vs. 12	14 vs. 13		13 vs. 12
Rooms occupied	68			—	—	68			—	100.0	%	—
Occupancy rate	91.7		%	—	—	91.7		%	—	100.0	%	—
Average daily room rate (in dollars)	$	61		—	—	$	61		—	100.0	%	—
Revenue per available room (in dollars)	$	56		—	—	$	56		—	100.0	%	—

 ___________

Hotel operations commenced on November 15, 2013.

Retail, entertainment and other revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of additional entertainment revenues driven by the new hotel and convention center, which includes a 1,500-seat concert venue. Retail, entertainment and other revenues also benefited from higher retail revenues resulting from changes in promotional programs designed to improve profitability.

Retail, entertainment and other revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year were relatively flat.

Operating Costs and Expenses

Operating costs and expenses consisted of the following (in thousands):

	For the Fiscal Years Ended September 30,
							Variance						Percentage Variance
	2014		2013		2012		14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Gaming	$	198,728	$	201,860	$	216,245	$	(3,132	)	$	(14,385	)	(1.6	)%	(6.7	)%
Food and beverage	8,745		7,907		8,815		838			(908		)	10.6	%	(10.3	)%
Hotel (1)	4,631		—		—		4,631			—			100.0	%	—
Retail, entertainment and other	2,539		1,146		1,161		1,393			(15		)	121.6	%	(1.3	)%
Advertising, general and administrative	31,339		29,233		30,203		2,106			(970		)	7.2	%	(3.2	)%
Depreciation and amortization	12,452		11,858		14,994		594			(3,136		)	5.0	%	(20.9	)%
Loss on disposition of assets	1		19		285		(18		)	(266		)	(94.7	)%	(93.3	)%
Severance	—		175		—		(175		)	175			(100.0	)%	100.0	%
Pre-opening	1,187		687		—		500			687			72.8	%	100.0	%
Total	$	259,622	$	252,885	$	271,703	$	6,737		$	(18,818	)	2.7	%	(6.9	)%

 ___________

(1) Hotel operations commenced on November 15, 2013.

Gaming costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year declined primarily due to lower Pennsylvania slot machine tax expenses commensurate with the reduction in slot revenues. The decline in gaming costs and expenses also reflected lower costs related to coupon redemptions at third-party outletsand reduced payroll costs. These results were partially offset by higher costs related to Momentum Dollar redemptions at Mohegan Sun at Pocono Downs-owned facilities and increased Pennsylvania regulatory fee assessments which were temporarily suspended in May and

42

June 2013. Expenses associated with the Pennsylvania slot machine tax totaled $122.3 million and $124.0 million for the fiscal years ended September 30, 2014 and 2013, respectively. Expenses associated with the Pennsylvania table game tax totaled $6.3 million and $6.1 million for the fiscal years ended September 30, 2014 and 2013, respectively. Gaming costs and expenses as a percentage of gaming revenues were 72.3% for each of the fiscal years ended September 30, 2014 and 2013.

Gaming costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year declined primarily as a result of lower Pennsylvania slot machine tax expenses commensurate with the reduction in slot revenues. The decrease in gaming costs and expenses also reflected lower Pennsylvania regulatory fee assessments which were temporarily suspended in May and June 2013, as well as reduced Pennsylvania table game tax expenses due to a reduction in the Pennsylvania table game tax rate. During the initial two years of table game operations, the Pennsylvania table game tax was 14%, plus 2% in local share assessments. Following the initial two years of table game operations, the Pennsylvania table game tax was reduced to 12%, plus the 2% local share assessments. Mohegan Sun at Pocono Downs concluded its initial two years of table game operations on July 13, 2012. In addition, the reduction in gaming costs and expenses resulted from changes in operations designed to improve profitability. Expenses associated with the Pennsylvania slot machine tax totaled $124.0 million and $134.2 million for the fiscal years ended September 30, 2013 and 2012, respectively. Expenses associated with the Pennsylvania table game tax totaled $6.1 million and $6.8 million for the fiscal years ended September 30, 2013 and 2012, respectively. Gaming costs and expenses as a percentage of gaming revenues were 72.3% and 72.8% for the fiscal years ended September 30, 2013 and 2012, respectively.

Food and beverage costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of higher payroll costs and cost of goods sold commensurate with the increase in food and beverage revenues. These results were partially offset by increased use of food and beverage complimentaries, resulting in higher amounts of food and beverage costs being allocated to gaming costs and expenses.

Food and beverage costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily due to lower payroll costs and certain other expenditures, reflecting, in part, changes in operations designed to improve profitability.

Retail, entertainment and other costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of additional costs and expenses necessary to support the new 1,500-seat concert venue, including direct entertainment costs. These results were partially offset by increased use of retail, entertainment and other complimentaries, resulting in higher amounts of retail, entertainment and other complimentaries costs being allocated to gaming costs and expenses.

Retail, entertainment and other costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year were relatively flat.

Advertising, general and administrative costs and expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of higher payroll costs and other additional administrative costs and expenses necessary to support the new hotel and convention center.

Advertising, general and administrative costs and expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased primarily due to lower insurance costs, combined with our focus on managing expenses.

Depreciation and amortization expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased due to the placement of new furniture and equipment related to the hotel and convention center into service in fiscal 2014.

Depreciation and amortization expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year decreased as a result of fully depreciated assets related to the Phase II facility.

Severance for the fiscal year ended September 30, 2013 resulted from charges related to our March 2013 workforce reduction plan.

Pre-opening costs and expenses for the fiscal years ended September 30, 2014 and 2013 were comprised of personnel costs associated with preparation for the opening of the new hotel and convention center.

43

Corporate and Other

Corporate and other consisted of the following (in thousands):

	For the Fiscal Years Ended September 30,
							Variance					Percentage Variance
	2014		2013		2012		14 vs. 13		13 vs. 12			14 vs. 13		13 vs. 12
Gross revenues	$	5,490	$	1,390	$	374	$	4,100	$	1,016		295.0	%	271.7	%
Less-Promotional allowances	99		88		77		11		11			12.5	%	14.3	%
Net revenues	$	5,391	$	1,302	$	297	$	4,089	$	1,005		314.1	%	338.4	%
Expenses	$	41,276	$	28,122	$	17,379	$	13,154	$	10,743		46.8	%	61.8	%
Depreciation and amortization	988		117		124		871		(7		)	744.4	%	(5.6	)%
Severance	—		—		24		—		(24		)	—		(100.0	)%
Total expenses	$	42,264	$	28,239	$	17,527	$	14,025	$	10,712		49.7	%	61.1	%

Corporate and other revenues for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of inter-segment lease revenues earned by Downs Lodging, LLC, our wholly-owned unrestricted subsidiary, which developed, financed and built Project Sunlight, the new hotel and convention center located at Mohegan Sun at Pocono Downs. All inter-segment revenues are eliminated in consolidation.

Corporate and other revenues for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased primarily due to management fees earned and reimbursable expenses incurred by Mohegan Gaming Advisors, LLC, our wholly-owned unrestricted subsidiary, and its subsidiaries, which entered into a joint venture and management arrangement with the owner of Resorts Casino Hotel in July 2012.

Corporate and other expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased primarily as a result of higher professional and development related expenditures associated with our unsuccessful pursuit of a Massachusetts casino license. Substantially all expenditures related to this pursuit were terminated in mid-September 2014.

Corporate and other expenses for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased primarily due to higher professional and development related expenditures, including expenditures associated with our unsuccessful pursuit of a Massachusetts casino license, and increased refinancing related costs.

Depreciation and amortization expenses for the fiscal year ended September 30, 2014 compared to the prior fiscal year increased due to the placement of the new hotel and convention center into service in fiscal 2014.

Other Income (Expense)

Other income (expense) consisted of the following (in thousands):

	For the Fiscal Years Ended September 30,
										Variance						Percentage Variance
	2014			2013			2012			14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Accretion of discount to the relinquishment liability (1)	$	(2,205	)	$	(4,974	)	$	(8,248	)	$	2,769		$	3,274		55.7	%	39.7	%
Interest income (2)	7,066			6,271			4,492			795			1,779			12.7	%	39.6	%
Interest expense, net of capitalized interest	(147,933		)	(170,150		)	(146,057		)	22,217			(24,093		)	13.1	%	(16.5	)%
Loss on early extinguishment of debt	(62,041		)	(11,516		)	(14,326		)	(50,525		)	2,810			(438.7	)%	19.6	%
Other expense, net (3)	(853		)	(1,595		)	(44		)	742			(1,551		)	46.5	%	N.M.
Total other expense	$	(205,966	)	$	(181,964	)	$	(164,183	)	$	(24,002	)	$	(17,781	)	(13.2	)%	(10.8	)%

 __________

(1) Reflected accretion of the discount to the present value of the relinquishment liability for the impact of the time value of money.

(2) Primarily represented interest earned on long-term receivables.

(3) Primarily represented loss from unconsolidated affiliates.

N.M. - Not Meaningful.

Interest expense for the fiscal year ended September 30, 2014 compared to the prior fiscal year decreased as a result of lower weighted average interest rate driven by our August and November 2013 refinancing transactions. Weighted average interest rate was 8.5% for the fiscal year ended September 30, 2014 compared to 10.1% in the prior fiscal year. Weighted average outstanding debt was $1.75 billion for the fiscal year ended September 30, 2014 compared to $1.70 billion in the prior fiscal year.

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Interest expense for the fiscal year ended September 30, 2013 compared to the prior fiscal year increased primarily due to higher weighted average interest rate. Weighted average interest rate was 10.1% for the fiscal year ended September 30, 2013 compared to 8.8% in the prior fiscal year. The increase in weighted average interest rate was driven by our March 2012 refinancing transactions. Weighted average outstanding debt was $1.70 billion for the fiscal year ended September 30, 2013 compared to $1.66 billion in the prior fiscal year.

Loss on early extinguishment of debt for the fiscal year ended September 30, 2014 represented financing fees expensed in connection with our November 2013 refinancing transactions. We incurred approximately $60.8 million in costs in connection with these refinancing transactions, consisting primarily of consulting, legal and tender and consent fees. Previously deferred debt issuance costs and debt discounts totaling $22.4 million, as well as $39.6 million in new transaction costs, were expensed and recorded as a loss on early extinguishment of debt. New debt issuance costs totaling $11.5 million were capitalized and will be amortized over the term of the related debt. The remaining $9.7 million in new debt issuance costs was reflected as debt discount and will be amortized over the term of the related debt.

Loss on early exchange of debt and write-off of debt issuance costs for the fiscal year ended September 30, 2013 primarily represented financing fees expensed in connection with our July and August 2013 consent solicitation and refinancing transactions. We incurred approximately $12.8 million in costs in connection with these refinancing transactions. Previously deferred debt issuance costs and debt discounts totaling $7.3 million, as well as $3.8 million in new transaction costs, were expensed and recorded as a loss on early extinguishment of debt. New debt issuance costs totaling $8.6 million were capitalized and will be amortized over the term of the related debt. The remaining $400,000 in new debt issuance costs was reflected as debt discount and will be amortized over the term of the related debt.

Seasonality

The gaming market in the Northeastern United States is seasonal in nature, with peak gaming activities often occurring at Mohegan Sun and Mohegan Sun at Pocono Downs during the months of May through August. Accordingly, our operating results for the fiscal year ended September 30, 2014 are not necessarily indicative of operating results for interim periods.

Liquidity and Capital Resources

Our cash flows consisted of the following (in thousands):

	For the Fiscal Years Ended September 30,
										Variance						Percentage Variance
	2014			2013			2012			14 vs. 13			13 vs. 12			14 vs. 13		13 vs. 12
Net cash provided by operating activities	$	73,016		$	102,951		$	176,997		$	(29,935	)	$	(74,046	)	(29.1	)%	(41.8	)%
Net cash used in investing activities	(22,455		)	(33,168		)	(91,336		)	10,713			58,168			32.3	%	63.7	%
Net cash used in financing activities	(65,077		)	(120,243		)	(83,751		)	55,166			(36,492		)	45.9	%	(43.6	)%
Net increase (decrease) in cash and cash equivalents	$	(14,516	)	$	(50,460	)	$	1,910		$	35,944		$	(52,370	)	71.2	%	N.M.

__________

N.M. - Not Meaningful.

As of September 30, 2014 and 2013, we held cash and cash equivalents of $49.1 million and $63.6 million, respectively. As a result of the cash-based nature of our business, operating cash flow levels tend to follow trends in our operating income, excluding the effects of non-cash charges, such as depreciation and amortization, accretion of discounts, relinquishment liability reassessments and gains and losses on early extinguishment of debt.

The decline in cash provided by operating activities for the fiscal year ended September 30, 2014 compared to the prior fiscal year resulted from a significant reduction in net income primarily driven by our November 2013 refinancing transactions, including the payment of tender and consent fees, partially offset by lower working capital requirements. Cash provided by operating activities for the fiscal year ended September 30, 2014 were negatively impacted by approximately $52.0 million as a result of the November 2013 refinancing transactions. The reduction in cash provided by operating activities for the fiscal year ended September 30, 2013 compared to the prior fiscal year resulted primarily from higher working capital requirements, including the timing of interest and workforce reduction related payments. The reduction in cash provided by operating activities for the fiscal year ended September 30, 2013 also was driven by lower net income.

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Operating activities are a significant source of our cash flows. We utilize cash flows from operations for scheduled interest payments, relinquishment payments, planned capital expenditures, distributions to the Tribe, projected working capital needs and debt reduction, as well as to make investments, from time to time. There are numerous factors which may cause a substantial reduction in the amount of such cash flows, including, but not limited to, the following:

• reduced discretionary spending by patrons on activities such as gaming, leisure and hospitality;

• increased competition, including the legalization or expansion of gaming in New England, New York, New Jersey, Pennsylvania or other states in the mid-Atlantic region, or the expansion of on-line gaming in the United States;

• unfavorable weather conditions;

• changes in applicable laws or policies regarding smoking or alcohol service at Mohegan Sun or Mohegan Sun at Pocono Downs;

• an infrastructure or transportation disruption, such as the closure of a major highway near Mohegan Sun or Mohegan Sun at Pocono Downs, for an extended period of time; and

• an act of terrorism on the United States.

The decline in cash used in investing activities for the fiscal year ended September 30, 2014 compared to the prior fiscal year was primarily due to our October 2012 acquisition of a 10% ownership interest in Resorts Atlantic City, combined with lower capital expenditures after factoring in the decrease in restricted cash. The reduction in cash used in investing activities for the fiscal year ended September 30, 2013 compared to the prior fiscal year was primarily attributable to lower capital expenditures after factoring in the decrease in restricted cash.

The decrease in cash used in financing activities for the fiscal year ended September 30, 2014 compared to the prior fiscal year was primarily attributable to increased borrowings to fund transaction costs associated with the November 2013 refinancing transactions. The increase in cash used in financing activities for the fiscal year ended September 30, 2013 compared to the prior fiscal year was primarily driven by reduced borrowings, partially offset by lower payments of financing fees.

External Sources of Liquidity

In November 2013, we completed a series of refinancing transactions relating to our prior bank credit facilities and 2009 and 2012 second lien senior secured notes, including the repayment and termination of the prior bank credit facilities and the repurchase or redemption of the 2009 and 2012 second lien senior secured notes with proceeds from new senior secured credit facilities (all further discussed below).

Prior Bank Credit Facilities

First Lien, First Out Credit Facility

In March 2012, we entered into a fourth amended and restated bank credit facility providing for a $400.0 million term loan and a revolving loan with letter of credit and borrowing capacity of up to $75.0 million from a syndicate of financial institutions and commercial banks, with Bank of America, N.A. serving as Administrative Agent, or the prior bank credit facility. In November 2013, we repaid and terminated the prior bank credit facility with proceeds from new senior secured credit facilities (further discussed below).

First Lien, Second Out Term Loan Facility

In March 2012, we entered into a loan agreement providing for a $225.0 million first lien, second out term loan with Wells Fargo Gaming Capital, LLC serving as Administrative Agent, or the prior term loan facility, and, together with the prior bank credit facility, the prior bank credit facilities. In November 2013, we repaid and terminated the prior term loan facility with proceeds from new senior secured credit facilities (further discussed below).

Senior Secured Credit Facilities

In November 2013, we entered into a loan agreement among us, the Tribe, the guarantors as defined below, RBS Citizens, N.A. as administrative and collateral agent and the other lenders and financial institutions party thereto, providing for $955.0 million in aggregate principal amount of senior secured credit facilities, or the senior secured credit facilities, comprised of a $100.0 million senior secured revolving credit facility, or the revolving facility, a $125.0 million senior secured term loan A facility, or the term loan A facility, and a $730.0 million senior secured term loan B facility, or the term loan B facility. The senior secured credit facilities mature on June 15, 2018, subject to extension based on the satisfaction of certain conditions to November 19, 2018 (in the case of the revolving facility and the term loan A facility) and November 19, 2019 (in the case of the term loan B facility).

The term loan A facility amortizes in equal quarterly installments in an aggregate annual amount equal to 5.0% of the original principal amount for the first year after the closing date, 7.5% of the original principal amount for the second year after the closing date and 10.0% of the original principal amount in each year thereafter, with the balance payable on the maturity date

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of the term loan A facility. The term loan B facility amortizes in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount. Amortization of the term loan A facility and term loan B facility began the first full fiscal quarter after the closing date. The proceeds from the term loan A facility and term loan B facility, together with a drawing under the revolving facility, were used to satisfy in full all amounts due under our prior bank credit facilities, to repurchase or redeem all of our outstanding 2009 and 2012 second lien senior secured notes and to otherwise satisfy and discharge the obligations in respect of such notes and to pay related fees and expenses. The revolving facility will otherwise be available for general corporate purposes.

As of September 30, 2014, amounts outstanding under the revolving facility, term loan A facility and term loan B facility totaled $37.0 million, $120.3 million and $724.5 million, respectively. As of September 30, 2014, letters of credit issued under the revolving facility totaled $2.9 million, of which no amount was drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving facility, and after taking into account restrictive financial covenant requirements, we had approximately $57.1 million of borrowing capacity under the revolving facility and line of credit as of September 30, 2014.

Borrowings under the senior secured credit facilities incur interest as follows: (i) for base rate loans under the revolving facility and term loan A facility, a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 basis points and (c) the one-month LIBOR rate plus 100 basis points (the highest of (a), (b) and (c), the “base rate”), plus a leverage-based margin of 250 to 350 basis points; (ii) for Eurodollar rate loans under the revolving facility and term loan A facility, the applicable LIBOR rate plus a leverage-based margin of 350 to 450 basis points; (iii) for base rate loans under the term loan B facility, the base rate (subject to a 2.0% floor) plus 350 basis points; and (iv) for Eurodollar rate loans under the term loan B facility, the applicable LIBOR rate (subject to a 1.0% floor) plus 450 basis points. We also are required to pay a leverage-based commitment fee of between 37.5 and 50 basis points for unused commitments under the revolving facility. Interest on base rate loans is payable quarterly in arrears. Interest on Eurodollar rate loans of three months or less is payable at the end of each applicable interest period and for Eurodollar rate loans of more than three months, interest is payable at intervals of three months duration after the beginning of such interest period.

As of September 30, 2014, the $37.0 million outstanding under the revolving facility was comprised of a $14.0 million base rate loan based on a base rate of 3.25% plus 350 basis points and a $23.0 million Eurodollar rate loan based on a Eurodollar rate of 0.15% plus 450 basis points. The commitment fee was 0.50% as of September 30, 2014. As of September 30, 2014, the $120.3 million outstanding under the term loan A facility was based on a Eurodollar rate of 0.23% plus 450 basis points. As of September 30, 2014, the $724.5 million outstanding under the term loan B facility was based on the Eurodollar rate floor of 1.0% plus 450 basis points.

Our obligations under the senior secured credit facilities are fully and unconditionally guaranteed, jointly and severally, by the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming, or collectively, the guarantors. The senior secured credit facilities are collateralized by a first priority lien on substantially all of our property and assets and those of the guarantors (other than MBC), including the assets that comprise Mohegan Sun at Pocono Downs and a leasehold mortgage on the land and improvements that comprise Mohegan Sun (we and the guarantors, other than MBC, are collectively referred to herein as the grantors). The grantors also are required to pledge additional assets as collateral for the senior secured credit facilities as they and future guarantor subsidiaries acquire them.

The senior secured credit facilities contain customary covenants applicable to us and our restricted subsidiaries, including covenants governing: incurrence of indebtedness, incurrence of liens, payment of dividends and other distributions, investments, asset sales, affiliate transactions, mergers or consolidations and capital expenditures. Additionally, the senior secured credit facilities include financial maintenance covenants pertaining to total leverage, secured leverage and minimum fixed charge coverage.

Maximum total leverage ratio covenant, or ratio of total debt to annualized EBITDA, as such terms are defined under the senior secured credit facilities:

Fiscal Quarters Ending:
September 30, 2014 through June 30, 2015	6.25:1.00
September 30, 2015 and thereafter	6.00:1.00

Maximum secured leverage ratio covenant, or ratio of secured debt to annualized EBITDA, as such terms are defined under the senior secured credit facilities:

Fiscal Quarters Ending:
September 30, 2014 through June 30, 2015	3.50:1.00
September 30, 2015 through June 30, 2016	3.25:1.00
September 30, 2016 and thereafter	3.00:1.00

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Minimum fixed charge coverage ratio covenant, as defined under the senior secured credit facilities:

Fiscal Quarters Ending:
September 30, 2014 and thereafter	1.05:1.00

As of September 30, 2014, we and the Tribe were in compliance with all respective covenant requirements under the senior secured credit facilities.

We continue to monitor revenues and manage expenses and enhance operating efficiencies to ensure continued compliance with our financial covenant requirements under the senior secured credit facilities. While we anticipate that we will remain in compliance with all covenant requirements under the senior secured credit facilities for all periods prior to maturity, we may need to increase revenues or offset any future declines in revenues by implementing additional cost saving and other initiatives to ensure compliance with these financial covenant requirements. If we are unable to satisfy our financial covenant requirements, we would need to obtain waivers or consents under the senior secured credit facilities; however, we can provide no assurance that we would be able to obtain such waivers or consents. If we are unable to obtain such waivers or consents, we would be in default under the senior secured credit facilities, which may result in cross-defaults under our other outstanding indebtedness and allow our lenders and creditors to exercise their rights and remedies as defined under their respective agreements, including their right to accelerate the repayment of our outstanding indebtedness. If such acceleration were to occur, we can provide no assurance that we would be able to obtain the financing necessary to repay such accelerated indebtedness.

Senior Secured Notes

2009 11  ¹/2% Second Lien Senior Secured Notes

In October 2009, we issued $200.0 million second lien senior secured notes with fixed interest payable at a rate of 11.5% per annum, or the 2009 second lien notes. In March 2012, we completed a private exchange offer and consent solicitation pursuant to which an aggregate principal amount of $199.8 million 2009 second lien notes were tendered and exchanged, leaving an aggregate principal amount of $200,000 2009 second lien notes outstanding. The 2009 second lien notes were scheduled to mature on November 1, 2017. The first call date for the 2009 second lien notes was November 1, 2013. In November 2013, we called for redemption all $200,000 of our outstanding 2009 second lien notes. The 2009 second lien notes were redeemed on December 19, 2013.

2012 11 ½% Second Lien Senior Secured Notes

In March 2012, we issued $199.8 million second lien senior secured notes with fixed interest payable at a rate of 11.5% per annum, or the 2012 second lien notes, in exchange for an equal amount of 2009 second lien notes. The 2012 second lien notes were scheduled to mature on November 1, 2017. Subsequent to November 1, 2014, we were entitled to redeem the 2012 second lien notes, in whole or in part, at a premium decreasing ratably to zero, plus accrued interest. In November 2013, we completed a tender offer and consent solicitation for our outstanding 2012 second lien notes. As part of the tender offer, we solicited and received requisite consents from tendering holders to certain amendments to the indentures governing the 2012 second lien notes, which eliminated certain restrictive covenants under the notes and related indenture. Pursuant to this transaction, we repurchased or redeemed all of our outstanding 2012 second lien notes in the aggregate principal amount of $199.8 million.

Senior Unsecured Notes

2013 9 ³/4% Senior Unsecured Notes

In August 2013, we issued $500.0 million senior unsecured notes with fixed interest payable at a rate of 9.75% per annum, or the 2013 senior unsecured notes. The net proceeds from this transaction, together with borrowings under the prior bank credit facility, were used to repurchase or redeem all of our then outstanding 2012 10.5% third lien senior secured notes, to repurchase $69.0 millionof our outstanding 2012 11.0% senior subordinated notes and to pay related fees and expenses. The 2013 senior unsecured notes mature on September 1, 2021. We may redeem the 2013 senior unsecured notes, in whole or in part, at any time prior to September 1, 2016 at a price equal to 100% of the principal amount plus a make-whole premium and accrued interest to the date of redemption. On or after September 1, 2016, we may redeem the 2013 senior unsecured notes, in whole or in part, at specified redemption prices, together with accrued interest to the date of redemption. If we experience specific kinds of change of control triggering events, we must offer to repurchase the 2013 senior unsecured notes at a price equal to 101% of the principal amount thereof, plus accrued interest to the purchase date. In addition, if we undertake certain types of asset sales and do not use the related sale proceeds for specified purposes, we may be required to offer to repurchase the 2013 senior unsecured notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2013 senior unsecured notes is payable semi-annually on March 1^st and September 1^st, commencing March 1, 2014. On March 11, 2014, we completed an offer to exchange the 2013 senior unsecured notes for a new issue of substantially identical debt securities registered under the Securities Act of 1933, with all outstanding notes being exchanged.

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The 2013 senior unsecured notes are uncollateralized general obligations and are effectively subordinated to all of our and the guarantors' and future guarantor subsidiaries' senior secured indebtedness, including the senior secured credit facilities, to the extent of the value of the collateral securing such indebtedness. The 2013 senior unsecured notes also are effectively subordinated to any indebtedness and other liabilities (including trade payables) of our subsidiaries that do not guarantee the 2013 senior unsecured notes. The 2013 senior unsecured notes rank equally in right of payment with our other unsecured, unsubordinated indebtedness, including trade payables and the senior portion of our payment obligations under our relinquishment agreement. The 2013 senior unsecured notes are fully and unconditionally guaranteed, jointly and severally, by the guarantors.

The 2013 senior unsecured notes indenture contains certain covenants that, subject to certain significant exceptions, limit, among other things, our and guarantors’ ability to incur additional debt, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company or transfer and sell assets. The 2013 senior unsecured notes indenture includes customary events of default, including, but not limited to, failure to make required payments, failure to comply with certain agreements or covenants, failure to pay certain other indebtedness, the occurrence of which is caused by a failure to pay principal, premium or interest or results in the acceleration of such indebtedness, certain events of bankruptcy and insolvency and certain judgment defaults.

Senior Subordinated Notes

2004 7 ¹/8% Senior Subordinated Notes

In August 2004, we issued $225.0 million senior subordinated notes with fixed interest payable at a rate of 7.125% per annum, or the 2004 senior subordinated notes. In March 2012, we completed a private exchange offer and consent solicitation for any or all of our outstanding 2004 senior subordinated notes. As part of the exchange offer, we solicited and received consents from tendering holders to certain amendments to the indentures governing the 2004 senior subordinated notes, which eliminated certain restrictive covenants under the notes and related indenture. The aggregate principal amount of 2004 senior subordinated notes tendered and exchanged was $203.8 million. Subsequent to our March 2012 private exchange offer, $21.2 million of the 2004 senior subordinated notes remained outstanding, which amount, including accrued interest, was repaid at maturity on August 15, 2014 with cash on hand and drawings under the revolving facility.

2005 6 ⁷/8% Senior Subordinated Notes

In February 2005, we issued $150.0 million senior subordinated notes with fixed interest payable at a rate of 6.875% per annum, or the 2005 senior subordinated notes. The 2005 senior subordinated notes mature on February 15, 2015. The 2005 senior subordinated notes are callable at our option at par. Interest on the 2005 senior subordinated notes is payable semi-annually on February 15^th and August 15^th.

In March 2012, we completed a private exchange offer and consent solicitation for any or all of our outstanding 2005 senior subordinated notes. As part of the exchange offer, we solicited and received consents from tendering holders to certain amendments to the indentures governing the 2005 senior subordinated notes, which eliminated certain covenants under the notes and related indenture. The aggregate principal amount of 2005 senior subordinated notes tendered and exchanged was $140.3 million. An aggregate principal amount of $9.7 million 2005 senior subordinated notes remains outstanding as of September 30, 2014. We plan to repay the outstanding 2005 senior subordinated notes, including accrued interest, at maturity with cash on hand and drawings under the revolving facility.

2012 11% Senior Subordinated Notes

In March 2012, we issued $344.2 million senior subordinated toggle notes with fixed interest payable at a rate of 11% per annum, or the 2012 senior subordinated notes, in exchange for $203.8 million of 2004 senior subordinated notes and $140.3 million of 2005 senior subordinated notes. The 2012 senior subordinated notes mature on September 15, 2018. We may redeem the 2012 senior subordinated notes, in whole or in part, at any time, at a price equal to 100% of the principal amount plus accrued interest. If a change of control occurs, we must offer to repurchase the 2012 senior subordinated notes at a price equal to 101% of the principal amount, plus accrued interest. In addition, if we undertake certain types of asset sales or suffer events of loss, and we do not use the related sale or insurance proceeds for specified purposes, we may be required to offer to repurchase the 2012 senior subordinated notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2012 senior subordinated notes is payable semi-annually on March 15^th and September 15^th. The initial interest payment on the 2012 senior subordinated notes was payable entirely in cash. For any subsequent interest payment period through March 15, 2018, we may, at our option, elect to pay interest on the 2012 senior subordinated notes either entirely in cash or by paying up to 2% in 2012 senior subordinated notes, or PIK interest. If we elect to pay PIK interest, such election will increase the principal amount of the 2012 senior subordinated notes in an amount equal to the amount of PIK interest for the applicable interest payment period to holders of 2012 senior subordinated notes on the relevant record date.

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In August 2013, we repurchased an aggregate principal amount of $69.0 million 2012 senior subordinated notes. An aggregate principal amount of $275.2 million 2012 senior subordinated notes remains outstanding as of September 30, 2014.

The 2012 senior subordinated notes and guarantees have not been and will not be registered under the Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

Our senior subordinated notes are uncollateralized general obligations and are subordinated to borrowings under the senior secured credit facilities and 2013 senior unsecured notes. The senior subordinated notes are fully and unconditionally guaranteed, jointly and severally, by the guarantors.

The senior and senior subordinated note indentures contain certain non-financial and financial covenant requirements with which we and the Tribe must comply. The non-financial covenant requirements include, among other things, reporting obligations, compliance with laws and regulations, maintenance of licenses and insurances and our continued existence. The financial covenant requirements include, among other things, subject to certain exceptions, limitations on our and the guarantors' ability to incur additional indebtedness, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company, transfer or sell assets or impair assets constituting collateral.

As of September 30, 2014, we and the Tribe were in compliance with all respective covenant requirements under the senior and senior subordinated note indentures.

We or our affiliates may, from time to time, seek to purchase or otherwise retire outstanding indebtedness for cash in open market purchases, privately negotiated transactions or otherwise. Any such transaction will depend on prevailing market conditions and our liquidity and covenant requirement restrictions, among other factors.

Line of Credit

In November 2013, in connection with the new senior secured credit facilities, we entered into a new $16.5 million revolving credit facility with Bank of America, N.A., or the line of credit. The line of credit is coterminous with the senior secured credit facilities. Pursuant to provisions of the senior secured credit facilities, under certain circumstances, the line of credit may be converted into loans under the senior secured credit facilities. Under the line of credit, each advance accrues interest on the basis of a one-month LIBOR Rate plus an applicable margin based on our total leverage ratio, as each term is defined under the line of credit. As of September 30, 2014, amounts outstanding under the line of credit totaled $3.0 million. Borrowings under the line of credit are uncollateralized obligations. The line of credit contains negative covenants and financial maintenance covenants that are substantially the same as those contained in the senior secured credit facilities. As of September 30, 2014, we were in compliance with all covenant requirements under the line of credit.

2009 Mohegan Tribe Promissory Note

In September 2009, the Tribe made a $10.0 million loan to Salishan-Mohegan, LLC, or Salishan-Mohegan, referred to herein as the 2009 Mohegan Tribe promissory note. The 2009 Mohegan Tribe promissory note was amended in June 2014 to extend the maturity date to September 30, 2015. The 2009 Mohegan Tribe promissory note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) $1.2 million per quarter, commencing December 31, 2013 through March 31, 2014 and (ii) $1.3 million on June 30, 2015, with the balance of accrued and unpaid interest due at maturity. As amended, principal outstanding under the 2009 Mohegan Tribe promissory note amortizes as follows: (i) $1.625 million per quarter, commencing December 31, 2012 through September 30, 2013, (ii) $875,000 per quarter, commencing December 31, 2013 through March 31, 2014, (iii) $875,000 on June 30, 2015 and (iv) $875,000 at maturity.

2012 Mohegan Tribe Minor's Trust Promissory Note

In March 2012, Comerica Bank & Trust, N.A., Trustee f/b/o The Mohegan Tribe of Indians of Connecticut Minor's Trust, made a $20.0 million loan to Salishan-Mohegan, referred to herein as the 2012 Mohegan Tribe Minor's Trust promissory note. The 2012 Mohegan Tribe Minor's Trust promissory note was amended in June 2014 to extend the maturity date to March 31, 2017. The 2012 Mohegan Tribe Minor's Trust promissory note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) quarterly, commencing June 30, 2012 through March 31, 2014, (ii) on July 1, 2014 on the unpaid balance for the period April 1, 2014 through June 30, 2014, (iii) $800,000 per quarter, commencing September 30, 2015 through March 31, 2016 and (iv) quarterly, thereafter on the unpaid balance. As amended, principal outstanding under the 2012 Mohegan Tribe Minor's Trust promissory note amortizes as follows: (i) $500,000 per quarter, commencing December 31, 2012 through March 31, 2014, (ii) $500,000 on July 1, 2014 and September 30, 2015, (iii) $1.5 million per quarter, commencing December 31, 2015 through September 30, 2016 and (iv) $10.0 million at maturity.

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2013 Mohegan Tribe Promissory Note

In March 2013, Mohegan Gaming & Hospitality, LLC, or MG&H, purchased and acquired all of the Tribe's membership interest in MG&H in exchange for a promissory note in the principal amount of $7.4 million, or the 2013 Mohegan Tribe promissory note. The 2013 Mohegan Tribe promissory note matures on December 31, 2018. The 2013 Mohegan Tribe promissory note accrues interest at an annual rate of 4.0% payable quarterly.

Downs Lodging Credit Facility

In July 2012, Downs Lodging, a single purpose entity and wholly-owned unrestricted subsidiary, entered into a credit agreement providing for a $45.0 million term loan from a third-party lender, or the Downs Lodging credit facility. The proceeds from the Downs Lodging credit facility were used by Downs Lodging to fund Project Sunlight, a hotel and convention center expansion project at Mohegan Sun at Pocono Downs. The Downs Lodging credit facility matures on July 12, 2016 and accrues interest at an annual rate of 13.0%. Under the terms of the Downs Lodging credit facility, accrued interest of 10.0% is payable monthly in cash during the term of the loan, with the remaining 3.0% due at maturity. In addition, a 3.0% exit fee is payable upon repayment of the loan principal. The Downs Lodging credit facility is a senior secured obligation of Downs Lodging, collateralized by all existing and future assets of Downs Lodging. The Downs Lodging credit facility subjects Downs Lodging to certain covenant requirements customarily found in loan agreements for similar transactions. As of September 30, 2014, Downs Lodging was in compliance with all covenant requirements under the Downs Lodging credit facility.

Capital Expenditures

The following table presents data related to capital expenditures (in millions, including capitalized interest):

	Capital Expenditures
	Fiscal Year Ended September 30, 2014		Fiscal Year Ended September 30, 2013		Fiscal Year Ended September 30, 2012			Forecasted Fiscal Year 2015
Mohegan Sun:
Maintenance	$	16.2	$	22.4	$	29.4		$	30.0
Development	3.3		5.3		6.8			—
Expansion	—		—		0.3			—
Subtotal	19.5		27.7		36.5			30.0
Mohegan Sun at Pocono Downs:
Maintenance	3.9		4.4		4.1			5.0
Expansion	—		0.3		(0.6		)	—
Subtotal	3.9		4.7		3.5			5.0
Corporate:
Development	—		0.7		—			—
Expansion—Project Sunlight	9.2		33.0		3.6			—
Subtotal	9.2		33.7		3.6			—
Total	$	32.6	$	66.1	$	43.6		$	35.0

We primarily rely on cash flows provided by operating activities to fund maintenance capital expenditures at Mohegan Sun and Mohegan Sun at Pocono Downs. We plan to fund any development or expansion capital expenditures at Mohegan Sun and Mohegan Sun at Pocono Downs through a combination of existing cash, cash flows provided by operating activities and draws under our revolving facility. The costs for Project Sunlight were funded through a combination of a $45 million non-recourse term loan obtained by Downs Lodging and a $5 million investment by us. Project Sunlight opened to the public on November 15, 2013.

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Interest Expense

The following table presents our interest expense (in thousands, net of capitalized interest):

	For the Fiscal Years Ended September 30,
	2014			2013			2012
Prior bank credit facility	$	3,199		$	22,566		$	21,723
Prior term loan facility (1)	2,924			21,514			12,280
Senior secured credit facility - revolving	1,365			—			—
Senior secured credit facility - term loan A (1)	5,103			—			—
Senior secured credit facility - term loan B (1)	36,896			—			—
2009 11 1/2% second lien senior secured notes (1)	5			24			10,226
2012 11 1/2% second lien senior secured notes (1)	3,285			24,463			13,840
2012 10 1/2% third lien senior secured notes (1)	—			39,697			25,719
2005 6 1/8% senior unsecured notes	—			402			7,143
2013 9 3/4% senior unsecured notes	48,750			6,229			—
2002 8% senior subordinated notes	—			—			8,980
2004 7 1/8% senior subordinated notes	1,319			1,548			7,761
2005 6 7/8% senior subordinated notes	664			691			4,818
2012 11% senior subordinated notes (1)	30,933			37,610			21,944
Line of credit	227			7			95
Salishan-Mohegan bank credit facility	—			—			250
2009 Mohegan Tribe promissory note	240			752			1,248
2012 Mohegan Tribe Minor's Trust promissory note	1,725			1,922			1,011
Mohegan Tribe credit facility	—			135			202
2013 Mohegan Tribe promissory note	297			151			—
Downs Lodging credit facility	6,365			6,228			1,263
Capital leases	222			398			559
Amortization of net deferred gain on settlement of derivative instruments	—			(76		)	(255		)
Amortization of debt issuance costs	5,149			7,865			7,284
Capitalized interest	(735		)	(1,976		)	(34		)
Total interest expense, net of capitalized interest	$	147,933		$	170,150		$	146,057

__________

(1) Includes accretion of discount.

Sufficiency of Resources

We believe that existing cash balances, financing arrangements and operating cash flows will provide us with sufficient resources to meet our existing debt obligations, relinquishment payments, foreseeable capital expenditure requirements and distributions to the Tribe for at least the next twelve months; however, we can provide no assurance in this regard. Please refer to “Part I. Item 1A. Risk Factors” for further details regarding risks relating to our sufficiency of resources. Inclusive of letters of credit, which reduce borrowing availability under the revolving facility, and after taking into account restrictive financial covenant requirements, we had approximately $57.1 million of borrowing capacity under the revolving facility and line of credit as of September 30, 2014. Distributions to the Tribe are anticipated to total approximately $50 million for fiscal 2015.

Contractual Obligations and Commitments

The following table presents estimated future payment obligations related to our debt and certain other material contractual obligations and the timing of those payments as of September 30, 2014 (in thousands):

			Payments due by period
Contractual Obligations	Total		Less than 1 year (1)		1-3 years		3-5 years		More than 5 years
Long-term debt	$	1,743,302	$	31,558	$	100,429	$	1,110,345	$	500,970
Capital and operating leases	9,798		2,642		3,823		2,401		932
Interest payments on long-term debt and capital leases	680,594		135,521		277,736		169,837		97,500
Procurement	55,096		16,092		23,911		11,258		3,835
Total	$	2,488,790	$	185,813	$	405,899	$	1,293,841	$	603,237

 ________

(1) Represents payment obligations from October 1, 2014 to September 30, 2015.

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In addition to the above listed contractual obligations, we have certain other contractual commitments as of September 30, 2014. The calculation of estimated future payments related to these contractual commitments as presented in the following table is based, in large part, on revenue projections over an extended period of time, as well as other factors that are more fully described below. Given the high level of estimate and judgment utilized in the calculation of these liabilities, future events that affect such estimates and judgments may cause actual payments to materially differ from current estimates. The amounts presented in the following table are estimates, and, while certain agreements have perpetual terms, for the purposes of calculating these amounts, we have assumed that the table contains information for only ten years (in thousands):

	Payments due by period
Contractual Commitments	Less than 1 year (1)		1-3 years		3-5 years		5-10 years
Combined minimum slot win and free promotional slot play contributions (2)	$	144,166	$	276,087	$	232,614	$	608,484
Pennsylvania slot machine tax (3)	121,591		246,830		256,899		688,576
Pennsylvania table game tax (4)	6,684		13,751		14,278		38,251
Horsemen purses (5)	435		—		—		—
Relinquishment (6)	25,194		—		—		—
Priority distributions (7)	19,791		41,019		43,012		116,893
Town of Montville (8)	500		1,000		1,000		2,500
Total	$	318,361	$	578,687	$	547,803	$	1,454,704

 ____________

(1) Represents payment obligations from October 1, 2014 to September 30, 2015.

(2) Represents portions of revenues earned on slot machines and free promotional slot plays that must be paid to the State of Connecticut. Slot win contribution payments are the lesser of: (1) 30% of gross revenues from slot machines at Mohegan Sun or (2) the greater of (a) 25% of gross revenues from slot machines at Mohegan Sun or (b) $80.0 million. Free promotional slot play contribution payments are 25% of the face amount of free promotional slot plays in excess of 11% of monthly gross revenues from slot machines at Mohegan Sun.

(3) Represents portion of revenues earned on slot machines that must be paid to the PGCB. Pennsylvania slot machine tax payments are 55% of gross revenues from slot machines at Mohegan Sun at Pocono Downs, 2% of which is subject to a $10.0 million minimum annual threshold.

(4) Represents portion of revenues earned on table games that must be paid to the PGCB. Pennsylvania Table Game Tax payments are 12%, plus 2% in local share assessments.

(5) Represents portion of racing handle that must be paid in purses pursuant an agreement with the Pennsylvania Harness Horsemen's Association. Payments consist of 2.5% of wagers on live races at Mohegan Sun at Pocono Downs that are simulcasted to other racetracks with the Commonwealth of Pennsylvania and 1.1% of wagers on races simulcasted to locations outside the Commonwealth of Pennsylvania.

(6) Represents payment obligations to TCA pursuant to a relinquishment agreement. Relinquishment payments are 5% of revenues, as defined under the relinquishment agreement. Payment obligations reflect our estimate of amounts to be paid over the remaining relinquishment period, which expires on December 31, 2014.

(7) Represents payment obligations to the Tribe pursuant to a priority distribution agreement. Priority distribution payments are calculated based on our net cash flows, as defined under the priority distribution agreement, and are limited to a maximum amount of $14.0 million, adjusted annually based on the Consumer Price Index, or the CPI. Payment obligations reflect our estimate of maximum amounts to be paid, adjusted by an annual CPI of 2.4%.

(8) Represents payment obligations to the Town of Montville of $500,000 per year to minimize the impact of Tribe’s reservation being held in trust.

Critical Accounting Policies and Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, we evaluate such estimates, including those related to revenue recognition, reserves for doubtful accounts, the liabilities associated with unredeemed Momentum Dollars, self-insurance and relinquishment, asset valuation, contingencies and litigation. These estimates are based on information currently available to us, as well as various other assumptions that we believe to be reasonable under current circumstances. Actual results could differ from those estimates.

We believe the following accounting policies impact significant judgments and estimates utilized in the preparation of our consolidated financial statements.

Revenue Recognition

We recognize gaming revenues as amounts wagered less prizes paid out. Revenues from food and beverage, hotel, retail, entertainment and other services are recognized at the time such service is performed. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rental revenues are recognized in the periods in which the tenants exceed their respective percentage rent thresholds.

Reserves for Doubtful Accounts

We maintain a reserve for doubtful collection of casino, hotel and other non-gaming receivables based on our estimate of the probability that these receivables will be collected. We assess the adequacy of this reserve by continuously evaluating

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historical experience, creditworthiness of the related patron and all other available information. Future business or economic trends could affect the collectability of these receivables and the related reserve.

We also maintain reserves for doubtful collection of reimbursable costs and expenses advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe for the Cowlitz Project and WTG on behalf of the Menominee Tribe for the Menominee Project based on our estimate of the probability that the receivables will be collected. We assess the reserve for doubtful collection of the Salishan-Mohegan receivables for adequacy on a quarterly basis. Future developments in the receipt of financing, the relevant land being taken into trust or other matters affecting the Cowlitz Project could affect the collectability of the Salishan-Mohegan receivables and the related reserve. The WTG receivables are fully reserved.

Unredeemed Momentum Dollars

We maintain an accrual for unredeemed Momentum Dollars. This accrual is based on the estimated cost of Momentum Dollars expected to be redeemed as of the respective balance sheet date. We assess the adequacy of this accrual by periodically evaluating historical redemption experiences and projected trends related to the accrual. Actual results could differ from these estimates.

Self-insurance Accruals

We are self-insured up to certain limits for costs associated with workers’ compensation, general liability and employee medical coverage. Insurance claims and reserves include accruals of estimated settlements of known claims, as well as accruals of estimates of incurred but not reported claims. In estimating self-insurance accruals, we consider historical loss experiences and expected levels of costs per claim. Claims are accounted for based on estimates of undiscounted claims, including claims incurred but not reported. We believe that this method provides a consistent and effective way to measure these liabilities; however, changes in health care costs, accident frequency and severity and other factors could materially impact estimated liabilities. We continuously monitor estimates and makes adjustments when necessary.

Relinquishment Liability

We recorded a relinquishment liability based on the estimated present value of our obligations under a relinquishment agreement. We reassess projected revenues and consequently the relinquishment liability: (1) annually in conjunction with our budgeting process or (2) when necessary to account for material increases or decreases in projected revenues over the relinquishment period. If the reassessment results in an overall increase in projected revenues over the relinquishment period, the relinquishment liability is increased by 5% of such increase in revenues, discounted at our risk-free rate of investment, which is an incremental layer. If the reassessment results in an overall decrease to projected revenues over the relinquishment period, the relinquishment liability is decreased by 5% of such decrease in revenues, discounted on the basis of a weighted-average discount rate, which is a decremental layer. The weighted-average discount rate is defined as the average discount rate utilized to discount all previous incremental layers weighted by the amount of each incremental layer. In addition, we recognize a quarterly accretion to the relinquishment liability to reflect the impact of the time value of money. Since the calculation of this liability requires a high level of estimates and judgments (including those related to projected revenues and impact and timing of future competition), future events that affect such estimates and judgments may cause the actual liability to materially differ from the current estimate.

Property and Equipment

Property and equipment are stated at cost. Depreciation is recognized over the estimated useful lives of the assets, other than land, on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Estimated useful lives by asset categories are as follows:

Buildings and land improvements	40 years
Furniture and equipment	3 - 7 years

The costs of significant improvements are capitalized. Costs of normal repairs and maintenance are expensed as incurred. Gains or losses on disposition of property and equipment are reflected in our consolidated financial statements.

Property and equipment are assessed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If it is determined that the carrying amounts may not be recoverable based on current and future levels of income and cash flows, as well as other factors, an impairment loss will be recognized at such time.

Goodwill

The fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania facilities, exclusive of capital expenditures requirements. If the carrying value of the goodwill exceeds its fair value, an impairment loss will be recognized to the extent that the carrying value of the goodwill exceeds its implied fair value. The income approach

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requires us to make assumptions regarding future revenues and expenses, discount rates and the terminal value based on a market multiple of the Pennsylvania facilities. As of September 30, 2014 and 2013, we assessed the goodwill for impairment and determined that no impairment existed. If any of the following occurs, the goodwill may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on our consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania facilities are not achieved, (2) if the discount rate increases, (3) if terminal growth rates decrease or (4) if market multiples decrease.

Other Intangible Assets

The slot machine license and table game certificate intangible assets are assessed as a single unit of accounting at least annually for impairment by comparing the fair value of the recorded assets to their carrying value. Their fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania facilities, exclusive of a required rate of return of all other assets and exclusive of capital expenditures requirements. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires us to make assumptions regarding future revenues and expenses, discount rates, royalty rate and the terminal value based on a perpetual growth rate of the Pennsylvania facilities. As of September 30, 2014 and 2013, we assessed the intangible assets for impairment and determined that no impairment existed. If any of the following occurs, the intangible assets may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on our consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania facilities are not achieved, (2) if the discount rate increases or (3) if the terminal value decreases.

The Mohegan Sun trademark is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing the income approach – relief from royalty method based on projected revenues from Mohegan Sun and Mohegan Sun at Pocono Downs. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires us to make assumptions regarding future revenues, discount rates, royalty rate and the terminal value based on a perpetual growth rate of Mohegan Sun and Mohegan Sun at Pocono Downs. As of September 30, 2014 and 2013, we assessed the Mohegan Sun trademark for impairment and determined that no impairment existed. If any of the following occurs, the Mohegan Sun trademark may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on our consolidated financial statements: (1) if estimates of projected cash flows from Mohegan Sun and Mohegan Sun at Pocono Downs are not achieved, (2) if the discount rate increases or (3) if the perpetual growth rate decreases.

Litigation

We are a defendant in various litigation matters resulting from our normal course of business. Some of these matters relate to personal injuries to patrons and damages to patrons’ personal assets. We estimate patrons' claims and accrue for such liabilities based upon historical experience.

Impact of Inflation

Absent changes in competitive and economic conditions or in specific prices affecting the hospitality and gaming industry, we do not expect that inflation will have a significant impact on our operations. Changes in specific prices, such as fuel and transportation prices, relative to the general rate of inflation may have a material adverse effect on the hospitality and gaming industry in general.

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Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and commodity prices. As of September 30, 2014, our primary exposure to market risk was interest rate risk associated with our senior secured credit facilities which accrued interest on the basis of a base rate formula or a Eurodollar rate formula, plus applicable rates, as defined under the respective facility.

We attempt to manage our interest rate risk through a controlled combination of long-term fixed rate borrowings and variable rate borrowings in accordance with established policies and procedures. We do not hold or issue financial instruments for speculative or trading purposes.

The following table presents information about our debt obligations as of September 30, 2014 that were sensitive to changes in interest rates. The table presents principal payments and related weighted average interest rates by expected maturity dates. Weighted average variable interest rates were based on implied forward rates in respective yield curves, which should not be considered to be precise indicators of actual future interest rates. Fair values for our debt obligations were based on quoted market prices or prices of similar instruments as of September 30, 2014.

	Expected Maturity Date
	2015			2016			2017			2018			2019			Thereafter			Total			Fair Value
Liabilities (in thousands)
Long-term debt and capital lease obligations (including current portions):
Fixed rate	$	13,417		$	52,129		$	11,162		$	276,159		$	7,725		$	500,970		$	861,562		$	866,844
Average interest rate	7.1		%	12.4		%	9.3		%	11.0		%	3.8		%	9.7		%	10.2		%
Variable rate	$	18,934		$	19,019		$	19,800		$	827,125		$	—		$	—		$	884,878		$	867,935
Average interest rate (1)	5.0		%	5.7		%	6.7		%	7.1		%	—			—			6.2		%

 __________

(1)A 100 basis point change in average interest rate would impact annual interest expense by approximately $8.8 million.

Item 8. Financial Statements and Supplementary Data.

Our consolidated financial statements and notes thereto, referred to in Item 15(a)(1) of this Annual Report on Form 10-K, are filed as part of this report and appear in this Annual Report on Form 10-K beginning on page F-1.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2014. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, or the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures. Management recognizes that controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on an evaluation of our disclosure controls and procedures as of September 30, 2014, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Management Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures are being made only in accordance with authorizations of our management; and

• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of September 30, 2014. In making this assessment, our management used the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in “2013 Internal Control-Integrated Framework.”

Based on this assessment, management concluded that, as of September 30, 2014, our internal control over financial reporting is effective.

This Annual Report on Form 10-K does not include an attestation report from our registered public accounting firm regarding internal control over financial reporting. Our internal control over financial reporting was not subject to such attestation as we are a non-accelerated filer.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during the quarter ended September 30, 2014, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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Item 9B. Other Information.

None.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance.

We are governed by a nine-member Management Board, whose members also comprise the Mohegan Tribal Council, or Tribal Council, the governing body of the Tribe. Any change in the composition of the Tribal Council results in a corresponding change in our Management Board. As of the date of this filing, the members of the Management Board and their terms are as follows: Cheryl A. Todd, Thayne D. Hutchins, Jr., Mark F. Brown and Mark M. Sperry are each serving four-year terms expiring in October 2015, while Kevin P. Brown, Ralph James Gessner, Jr., Kathleen M. Regan-Pyne, Bruce S. Bozsum and William Quidgeon, Jr. are each serving four-year terms expiring in October 2017. Members of the Tribal Council are elected by the registered voters of the Tribe through competitive general elections. Vacancies on the Tribal Council, to the extent they arise, are likewise filled by similar special elections. Upon expiration of Tribal Council members' terms, registered voters of the Tribe may re-elect current Tribal Council members who choose to run for re-election or elect new Tribal Council members. Incumbent members of the Tribal Council do not nominate or otherwise identify candidates for election. Accordingly, the Tribal Council and Management Board do not screen candidates for election nor do they maintain a nominating committee.

Management Board and Named Executive Officers

The following table presents data related to the members of the Management Board and our named executive officers, as of the date of this filing:

Name	Age	Position
Kevin P. Brown	49	Chairman and Member, Management Board
Ralph James Gessner, Jr.	45	Vice Chairman and Member, Management Board (1)
Cheryl A. Todd	54	Recording Secretary and Member, Management Board
Kathleen M. Regan-Pyne	58	Corresponding Secretary and Member, Management Board (1)
Thayne D. Hutchins, Jr.	43	Treasurer and Member, Management Board (1)
Mark F. Brown	57	Member, Management Board (1)
Bruce S. Bozsum	54	Member, Management Board
William Quidgeon, Jr.	52	Member, Management Board (1)
Mark M. Sperry	64	Member, Management Board
Mitchell Grossinger Etess	56	Chief Executive Officer, Mohegan Tribal Gaming Authority
Mario C. Kontomerkos	38	Chief Financial Officer, Mohegan Tribal Gaming Authority
Robert J. Soper	42	President and Chief Executive Officer, Mohegan Sun

________

(1) Audit Committee member.

Kevin P. Brown—Mr. Brown was first seated on the Tribal Council and Management Board in October 2013, at which time he was also elected Chairman, after a 25-year career in the United States Army. Mr. Brown’s experience as a commissioned officer in the Army includes extensive leadership and organizational management in deployed combat environments, as well as the stateside management of a large Army base at Fort Riley, Kansas. Mr. Brown also served as an analyst at the Pentagon following his attainment of a Master of Science Degree in Operational Research and Systems Analysis at the Naval Postgraduate School in Monterey, California. In addition, Mr. Brown holds a Bachelor of Science Degree in Aerospace Engineering from the United States Military Academy, a Master of Arts in Public Diplomacy from Norwich University and a Doctoral Candidacy in Security Studies from Kansas State University.

Ralph James Gessner, Jr.—Mr. Gessner was first seated on the Tribal Council and Management Board in October 2005. He was elected Vice Chairman in October 2010. Mr. Gessner previously held multiple positions at Mohegan Sun, including Director of Executive Hosts and Vice President of Casino Marketing. Mr. Gessner holds a Bachelor’s Degree in Hotel and Restaurant Management from the University of Southwestern Louisiana.

Cheryl A. Todd—Ms. Todd was first seated on the Tribal Council and Management Board in March 2007 after serving as Executive Assistant to the Chairman of the Management Board for 11 years. She also served on the Mohegan Strategic Planning Committee in 1997 and the Mohegan Election Committee from 1996 to 1999. Prior to her employment with the Tribe, Ms. Todd held multiple positions at the Naval Submarine Base in Groton, Connecticut.

Kathleen M. Regan-Pyne—Ms. Regan-Pyne was first seated on the Tribal Council and Management Board in October 2009 after serving as Manager of Tribal Career Development for the Tribe and Mohegan Sun for three years. Prior to her employment with the Tribe and Mohegan Sun, Ms. Regan-Pyne held multiple positions in the insurance/financial services industry, including Director of Life Claims at Lincoln Life & Annuity. Ms. Regan-Pyne is a graduate of Eastern Connecticut State University.

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Thayne D. Hutchins, Jr.—Mr. Hutchins was first seated on the Tribal Council and Management Board in October 2007 after serving as a staff accountant for the Tribe for six years. Mr. Hutchins graduated Magna Cum Laude from Eastern Connecticut State University and holds a Bachelor’s Degree in Economics with a concentration in Accounting.

Mark F. Brown—Mr. Brown was first seated on the Tribal Council and Management Board in October 1995. He served as Chairman of the Tribal Council and Management Board from October 2000 until October 2005. Mr. Brown also served as the Tribe's historian and was instrumental in the Tribe's pursuit of federal recognition.

Bruce S. Bozsum—Mr. Bozsum was first seated on the Tribal Council and Management Board in October 2004. He served as Chairman of the Tribal Council and Management Board from October 2005 until October 2009 and from October 2010 until October 2013. Mr. Bozsum previously served as Manager of Cultural and Community Programs for the Tribe, in which capacity he was responsible for educational outreach programs and the annual Wigwam Festival and Cultural Week. He also was employed as a Floor Supervisor for the Tribe’s high stakes bingo operations.

William Quidgeon, Jr.—Mr. Quidgeon was first seated on the Tribal Council and Management Board in October 2005. He previously held multiple positions at the Tribe and Mohegan Sun, including Senior Project Manager of the Mohegan Tribal Development Department. Prior to his employment with the Tribe, Mr. Quidgeon served as Chairman of the Mohegan Information Technology Group, a limited liability company that is majority-owned by the Tribe.

Mark M. Sperry—Mr. Sperry was elected to the Tribal Council and Management Board in October 2011. Mr. Sperry oversaw the Education Department of the Tribe for over 15 years and has an extensive background in education and psychology, having worked as a Master teacher at EastConn, a special service organization to public schools, and a supervisor and career counselor for multiple vocational training programs at the Meriden/Middletown Workforce Development Board. He also served as co-chair of the USET (United South and Eastern Tribes) Education Committee and as Chairman of the Tribal Employment Rights Ordinance Commission of the Tribe. In addition to a Bachelor's Degree from the University of Connecticut, Mr. Sperry also holds a Special Education Teaching Certification from Central Connecticut State University and master's level certification in elementary education from Southern Connecticut State University.

Mitchell Grossinger Etess—Mr. Etess assumed the role of Chief Executive Officer of the Authority in May 2006. He also served as President and Chief Executive Officer of Mohegan Sun from August 2004 to December 2010. Mr. Etess previously served as Executive Vice President of Marketing from October 1999 to August 2004 and Senior Vice President of Marketing from November 1995 to October 1999. Prior to his employment with the Authority and Mohegan Sun, Mr. Etess served as Vice President of Marketing at Players Island and Senior Vice President of Marketing and Hotel Operations at Trump Plaza Hotel and Casino. He also held various management positions in the hospitality and advertising industries.

Mario C. Kontomerkos—Mr. Kontomerkos was appointed Chief Financial Officer of the Authority in September 2011. Prior to his employment with the Authority, Mr. Kontomerkos served as Corporate Vice President of Finance at Penn National Gaming, Inc. from March 2010 to July 2011. Mr. Kontomerkos previously served as an analyst at Magnetar Capital, LLC, an investment management company, from July 2007 to May 2009, and a research analyst for the gaming and lodging industries at J.P. Morgan Securities from May 2005 to May 2007.

Robert J. Soper—Mr. Soper was appointed President and Chief Executive Officer of Mohegan Sun in October 2012. Mr. Soper previously served as the President and General Manager of Mohegan Sun at Pocono Downs from 2005 to 2012, Senior Vice President of Administration at Mohegan Sun from 2001 to 2005 and Senior Attorney at the Tribe from 1997 to 2001.

Audit Committee

We have established a separately-designated standing Audit Committee in accordance with applicable provisions of the Securities Exchange Act of 1934. The Audit Committee is comprised of certain members of the Management Board. Members of our Audit Committee are capable of reading and understanding financial statements, including balance sheets and statements of income, changes in capital and cash flows. The Management Board has determined that none of its members and, accordingly, no member of the Audit Committee, is a financial expert, meaning no member has past employment experience in finance or accounting, requisite professional certification in accounting or any other comparable experience or background, which results in the individual’s financial sophistication, including being or having been a chief executive officer, chief financial officer or other senior officer with financial oversight responsibilities. However, the Audit Committee is advised on financial matters through a Financial Advisory Committee comprised of one or more financial experts independent from us.

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Code of Ethics

We have adopted a code of ethics that applies to all of our executive officers, including our principal executive and financial officers. Our code of ethics is available on our website at “www.mtga.com” under “Corporate Governance.”

Should we make any significant amendment to the code of ethics or grant any waiver, including any implicit waiver, from a provision of the code of ethics to our principal executive, financial and accounting officers, we will disclose the nature of such amendment or waiver on our website and in a report on Form 8-K.

Item 11. Executive Compensation.

Compensation Discussion and Analysis

Executive Compensation Objectives

We operate in an extremely competitive environment and believe that our current and future success is closely correlated with our ability to attract and retain highly talented employees and a strong management team. Accordingly, our executive compensation program is intended to meet three principal objectives: (1) attract, reward and retain senior management employees, (2) motivate these individuals to achieve our short-term and long-term business goals and (3) promote internal compensation equity and external competitiveness.

Our philosophy relating to executive compensation is to attract and retain highly qualified individuals by offering competitive base salaries, cash-based incentive opportunities and other employee benefits. We face unique challenges in designing our executive compensation program because, as an instrumentality of the Tribe, we cannot offer equity-based compensation to our executives, unlike many of our industry peers. As a result, we strive to offer a cash-based compensation program that rewards our executives with competitive compensation while providing proper incentives to achieve our financial and operational goals at both the operating unit and company-wide levels. We also strive to ensure that our executive compensation program is straightforward, transparent and understandable.

Role of the Compensation Committee and Senior Management

Our nine-member Management Board, whose members also comprise the Tribal Council, serves as our Compensation Committee and has final authority over the design, negotiation and implementation of our executive compensation program. As discussed below, Mr. Etess, along with other senior and executive level employees, have taken the leading roles in the design of our executive compensation program. In addition, acting within the boundaries of our annual budget, as approved by the Management Board, Mr. Etess and other senior and executive level employees determine the base salaries and cash-based incentive opportunities offered to our executives.

Elements of Compensation

Compensation offered to our named executive officers, or NEOs, primarily consists of annual compensation in the form of base salaries and employee benefits/perquisites. We also offer our NEOs the opportunity to defer all or a portion of their annual cash compensation under a deferred compensation plan, or DCP, and to participate in the Mohegan Retirement and 401(k) Plan, both of which are sponsored by the Tribe. The following presents additional information relating to the elements of compensation offered to our NEOs in fiscal 2014:

Annual Compensation

Annual compensation consists of base salaries and employee benefits. These elements are intended to provide some degree of compensation certainty to our NEOs by providing compensation that, unlike incentive compensation, is not “at-risk” based upon company performance.

Base Salary

We believe that a competitive base salary is an important component of compensation as it provides a degree of financial stability and is a critical factor in recruiting and retaining our NEOs. Base salary also is designed to recognize the scope of responsibilities placed under each NEO and to reward each NEO for their unique leadership skills, management experience and contributions to the company.

In determining base salary levels, we take into consideration economic and industry conditions and company performance. We do not assign relative weights to individual and company performance, but instead make a subjective determination after considering such measures collectively. Base salary also is evaluated relative to other components of our executive compensation program to ensure that each NEO's total compensation and mix of components are consistent with our overall compensation objectives and philosophies.

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With these factors in mind, we have entered into employment agreements with our NEOs that, among other things, provide for minimum base salary levels and employee benefits that, when combined, provide total compensation reflecting our need to compete for and retain management talent in a competitive environment. Our NEOs’ base salaries also are subject to annual increases.

Employee Benefits

Our NEOs receive certain employee benefits, including health insurance, dental and vision coverage, prescription drug plans, long-term disability care and flexible spending accounts. In addition, our NEOs are provided the opportunity to receive employer-matching 401(k) contributions of 50% of their elective deferral contributions up to a maximum of 3% of their compensation under the Mohegan Retirement and 401(k) Plan. All of our NEOs receive payment of premiums for supplemental long-term disability policies.

Incentive Compensation

In the past we have offered our NEOs cash-based incentive compensation in the form of an annual cash bonus opportunity. However, due to recent company-wide cost saving initiatives, we have indefinitely suspended such annual cash bonuses.

Compensation Committee Report

Our nine-member Management Board serves as our Compensation Committee. The Management Board met with us to review and discuss the preceding Compensation Discussion and Analysis. Based on such review and discussion, the Management Board approved this Compensation Discussion and Analysis and authorized its inclusion in this Annual Report on Form 10-K for the fiscal year ended September 30, 2014.

Management Board

The members of the Management Board, as of the date of this filing, are as follows: Kevin P. Brown, Ralph James Gessner, Jr., Cheryl A. Todd, Kathleen M. Regan-Pyne, Thayne D. Hutchins, Jr., Mark F. Brown, Bruce S. Bozsum, William Quidgeon, Jr. and Mark M. Sperry.

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Summary Compensation Table

Name and Principal Position	Fiscal Year	Base Salary		Cash Bonus	Non-Equity Incentive Compensation	All Other Compensation (2)	Total
Mitchell Grossinger Etess	2014	$	1,402,762	—	—	15,136	$	1,417,898
Chief Executive Officer,	2013	$	1,429,738	—	—	15,150	$	1,444,888
Mohegan Tribal Gaming Authority	2012	$	1,367,699	—	—	9,886	$	1,377,585
Mario C. Kontomerkos	2014	$	717,829	—	—	3,722	$	721,551
Chief Financial Officer,	2013	$	709,423	—	—	3,735	$	713,158
Mohegan Tribal Gaming Authority	2012	$	675,389	—	—	511	$	675,900
Robert J. Soper (1)	2014	$	800,000	—	—	15,456	$	815,456
President and Chief Executive Officer,	2013	$	740,662	—	—	95,065	$	835,727
Mohegan Sun	2012	$	466,206	—	—	30,214	$	496,420

 _________

(1) Appointed President and Chief Executive Officer of Mohegan Sun on October 22, 2012.

(2) Amounts reported in this column are comprised of the following:

All Other Compensation Details

Name	Fiscal  Year	401(k) (1)		Long-Term Disability (2)	Vacation Payout (3)	Moving Allowance (4)	Taxes on Moving Allowance (5)	Total
Mitchell Grossinger Etess	2014	$	5,250	9,886	—	—	—	$	15,136
	2013	$	5,250	9,900	—	—	—	$	15,150
	2012	$	—	9,886	—	—	—	$	9,886
Mario C. Kontomerkos	2014	$	—	3,722	—	—	—	$	3,722
	2013	$	—	3,735	—	—	—	$	3,735
	2012	$	—	511	—	—	—	$	511
Robert J. Soper	2014	$	5,250	10,206	—	—	—	$	15,456
	2013	$	5,250	646	13,354	50,000	25,815	$	95,065
	2012	$	—	—	30,214	—	—	$	30,214

 _________

(1) Employer-matching 401(k) contributions.

(2) Premium payments on long-term disability policies.

(3) Payments pertaining to unused vacation time.

(4) Payments of moving expenses.

(5) Reimbursements for payments of income taxes pertaining to moving expenses.

Non-Qualified Deferred Compensation

We offer our NEOs the opportunity to participate in the DCP. The DCP is a non-qualified plan that allows our executives the opportunity to defer all or a portion of their annual cash compensation. We do not make contributions to the DCP on behalf of our NEOs. The following table presents each NEO activity within the DCP for the fiscal year ended September 30, 2014.

Name	Employee Contributions		Employer Contributions		Aggregate Additions/ Earnings		Aggregate Withdrawals/ Distributions			Balance September 30, 2014
Mitchell Grossinger Etess	$	207,717	$	—	$	420,485	$	(845,580	)	$	4,804,930
Mario C. Kontomerkos	$	—	$	—	$	—	$	—		$	—
Robert J. Soper	$	40,769	$	—	$	2,878	$	—		$	72,487

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The amounts deferred by each NEO are deemed to be invested in the fund(s) designated by each NEO from among a number of funds offered under the DCP. NEOs may change their investment selections from time to time. The following funds were available under the DCP, as of the date of this filing:

Schwab Value Advantage Money	JHancock Disciplined Value Mid	Lazard Emerging Markets Equity
T. Rowe Price Health Sciences	Sentinel Common Stock A	Dreyfus Intl Stock Index
BlackRock Global Allocation Instl	Schwab S&P 500 Index	American Century ShDur Infl Prot
AllianzGI Technology Institutional	American Beacon Lg Cap Value	Fidelity Spartan Extended Mkt
Morgan Stanley Inst Mid Cap	Glenmede Small Cap Equity Adv	Cohen & Steers Realty Shares
Fidelity High Income	Thornburg International Value I	American Century Infl-Adj Bond
T. Rowe Price Blue Chip Growth	Prudential Jennison Utility A	PIMCO Emerging Local Bond Adm
PIMCO Total Return Instl	Dreyfus Bond Market Index Basic

In accordance with U.S. federal income tax laws and regulations, an election to defer compensation generally must be made prior to the year in which the services to which the compensation relates will be performed. Once made, an election to defer compensation to be earned in the upcoming year is irrevocable. At time of deferral election, each NEO chooses the date on which payment of deferred compensation for the upcoming year is to commence, as well as whether to receive payments in a lump sum or in up to fifteen annual installments. NEOs may change the form and timing of payments elected with respect to particular deferrals, subject to compliance with the terms of the DCP then in effect, including, any grandfathered terms resulting from changes in applicable U.S. federal income tax laws and regulations.

Potential Payments and Benefits upon Termination or Change in Control

The following table presents potential payments to our NEOs in the event of a termination of employment, based on the terms of their employment agreements, as described below. Due to our sovereignty, potential payments upon change in control are not included within the table below, as these are not applicable. The amounts presented represent our estimate of potential payments to our NEOs upon their termination, assuming, in each case, that termination occurred on September 30, 2014, the last day of fiscal 2014. Actual payments can only be determined at the time of each NEO's separation from the company.

	Base Salary		Medical Benefits	Penalty Payment	Total
Mitchell Grossinger Etess
Termination without cause	$	1,052,071	13,394	250,000	$	1,315,465
Termination due to medical disability (1)	$	701,381	1,402,762	—	$	2,104,143
Change of Control	$	—	—	—	$	—
Mario C. Kontomerkos
Termination without cause	$	2,332,944	19,280	—	$	2,352,224
Termination due to medical disability (1)	$	358,915	717,829	—	$	1,076,744
Change of Control	$	—	—	—	$	—
Robert J. Soper
Termination without cause	$	1,400,000	19,280	—	$	1,419,280
Termination due to medical disability (1)	$	400,000	800,000	—	$	1,200,000
Change of Control	$	—	—	—	$	—

  __________

(1) Under the NEOs employment agreements, upon termination without cause, we are required to continue to provide medical benefits for a period of one year following such termination. Upon termination due to medical disability, we are required to continue to provide the NEOs' annual base salaries and medical benefits for a period of 180 days; thereafter, if we choose to suspend the NEOs' employment or the NEOs are deemed permanently disabled, we are required to provide disability insurance coverage of 50% of the NEOs' annual base salaries, except for Mr. Etess for whom we are required to provide disability insurance coverage of 50% of his Disability Annual Salary, as defined, for a period of two years commencing at termination or suspension of the NEOs' employments.

Employment Agreements

Mr. Etess. Mr. Etess's amended and restated employment agreement commenced as of January 1, 2012 and expires on June 30, 2015. The agreement provides for an annual base salary of $1,361,904, subject to an increase to $1,402,762 as of July 1, 2012, and thereafter subject to increases as determined by us. The agreement is subject to automatic renewal for an additional

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three-year term unless either party provides notice to the other on or before one year prior to the end of the agreement's stated term of an intention to terminate the agreement at the stated termination date. We may terminate Mr. Etess's employment for “cause,” defined as: (1) the violation of the non-competition, non-solicitation and non-disclosure covenants contained in the agreement, (2) the loss or suspension by the State of Connecticut of Mr. Etess's license for Class III gaming for a period of thirty (30) consecutive days, (3) conviction of any crime committed involving fraud, theft or moral turpitude or (4) an intentional material breach of Mr. Etess's obligations under the agreement. In the event that we terminate Mr. Etess for cause, he is not entitled to any further compensation from and after the date of termination. In the event of termination other than for cause, Mr. Etess is entitled to receive severance payments equal to his annual base salary from the date of termination to the expiration of the agreement in the same amounts and at the same intervals as would have been paid had his employment continued. Should we terminate his employment other than for cause, Mr. Etess may withdraw his deferred compensation and, in turn, we have agreed, under certain circumstances outlined in the agreement, to pay the penalty for early withdrawal of his deferred compensation, in amounts not to exceed the maximum balances outlined in the agreement. Additionally, in the event of termination other than for cause, we have agreed to pay any income taxes payable by Mr. Etess in connection with any such penalty payments made by us, in amounts not to exceed the maximum balances outlined in the agreement.

Mr. Kontomerkos. Mr. Kontomerkos's employment agreement commenced as of September 1, 2011 and expires on December 31, 2014. The agreement provides for an annual base salary of $675,000, subject to annual increases commencing January 1, 2013, as determined by us. The agreement is subject to automatic renewal for an additional three-year term unless either party provides notice to the other on or before the 180^th day prior to the end of the agreement's stated term of an intention to terminate the agreement at the stated termination date. Under the agreement, we may terminate Mr. Kontomerkos's employment for cause, as defined above. In the event that we terminate Mr. Kontomerkos for cause, he is not entitled to any further compensation from and after the date of termination. In the event of termination other than for cause, Mr. Kontomerkos is entitled to receive severance payments equal to his annual base salary from the date of termination to the expiration of the agreement in the same amounts and at the same intervals as would have been paid had his employment continued.

Mr. Soper. Mr. Soper’s employment agreement, which replaced his previous employment agreement, commenced as of March 1, 2013 and expires on June 30, 2016. At commencement, his annual base salary under the agreement was $750,000, increasing to an annual base salary of $800,000 subsequent to April 21, 2013, and subject to annual increases commencing July 1, 2014, as determined by us. The agreement is subject to automatic renewal for an additional one-year term unless either party provides notice to the other on or before one year prior to the end of the agreement’s stated term of an intention to terminate the agreement at the stated termination date. Under the agreement, we may terminate Mr. Soper for cause, as defined above. In the event that we terminate Mr. Soper for cause, he is not entitled to any further compensation from and after the date of termination. In the event of termination other than for cause, Mr. Soper is entitled to receive severance payments equal to his annual base salary from the date of termination through the greater of: (1) the expiration date of the initial term of the agreement or (2) 12 months from the date of termination, in the same amounts and at the same intervals as would have been paid had his employment continued.

Compensation of Management Board

The following table presents data related to compensation of current members of the Management Board for the fiscal year ended September 30, 2014.

Name	Compensation		Other (1)	Total
Kevin P. Brown	$	177,787	217	$	178,004
Ralph James Gessner, Jr.	$	176,732	278	$	177,010
Cheryl A. Todd	$	135,528	214	$	135,742
Kathleen M. Regan-Pyne	$	142,994	225	$	143,219
Thayne D. Hutchins, Jr.	$	127,597	198	$	127,795
Mark F. Brown	$	172,591	501	$	173,092
Bruce S. Bozsum	$	145,002	225	$	145,227
William Quidgeon, Jr.	$	143,146	225	$	143,371
Mark M. Sperry	$	127,597	198	$	127,795

__________

(1) Premium payments on life insurance policies owned by each member.

Members of the Management Board are paid annual salaries by the Tribe for their services as members of the Tribal Council. Due to the dual roles of these individuals in our governance and Tribe's, we are obligated to fund a portion of their compensation pursuant to an arrangement established at the time of Mohegan Sun's inception. In fiscal 2014, we were obligated to fund 60% of each member's annual compensation. This allocation was determined based on the amount of time members acted

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in their capacity as the Management Board as opposed to their capacity as the Tribal Council. We believe that members' activities in fiscal 2015 will be consistent with their fiscal 2014 activities and as such we expect to fund 60% of their fiscal 2015 compensation.

Compensation Committee Interlocks and Insider Participation

As noted above, the Management Board serves as our Compensation Committee.

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Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

We have no outstanding equity securities.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Procedure for Review of Related Party Transactions

Potential conflicts of interest, including related party transactions reportable under Securities and Exchange Commission rules, must be approved in advance. We have a code of ethics which applies to our Chief Executive Officer, or principal executive officer, Chief Financial Officer, or principal financial officer, and all other executive officers, whom we collectively refer to as our principal officers. Our code of ethics addresses, among other things, conflicts of interest and is available on our website at “www.mtga.com”. Under our code of ethics, principal officers with actual or potential conflicts of interest must disclose such conflicts to the Director of Regulation, his designee or the Chairman of our Management Board. Consistent with our practice, only our Management Board may waive provisions of our code of ethics.

Our Management Board reviews all transactions between us and principal officers. In addition, our corporate governance practices include procedures for discussing and assessing relationships among us and principal officers, including business, financial and family member, as applicable. Our Management Board also reviews transactions with principal officers, on a case-by-case basis, to determine whether any conflict of interest exists. Additionally, our Management Board ensures that directors voting on such matters have no interest in the matter and discusses transactions with counsel as deemed necessary.

Transactions between the Authority and the Authority’s Subsidiaries and the Tribe

Distributions

In August 2001, we and the Tribe entered into an agreement, or the priority distribution agreement, which stipulates that we must make monthly payments to the Tribe to the extent of our net cash flow, as defined under the priority distribution agreement. The priority distribution agreement, which has a perpetual term, limits the maximum aggregate priority distribution payments in each calendar year to $14.0 million, as adjusted annually in accordance with a formula specified in the priority distribution agreement to reflect the effects of inflation. Payments under the priority distribution agreement: (1) do not reduce our obligations to reimburse the Tribe for governmental and administrative services provided by the Tribe or to make payments under any other agreements with the Tribe, (2) are limited obligations and are payable only to the extent of our net cash flow, as defined under the priority distribution agreement and (3) are not secured by a lien or encumbrance on any of our assets or properties.

Distributions to the Tribe associated with the priority distribution agreement totaled $19.5 million, $19.2 million and $18.8 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Additional priority distributions to the Tribe, in compliance with restrictive financial covenants under our bank credit facilities, line of credit and note indentures and exclusive of priority distributions under the priority distribution agreement, totaled $30.5 million, $30.8 million and $34.2 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

Services

The Tribe provides certain governmental and administrative services in connection with the operation of Mohegan Sun. We incurred expenses for such services totaling $27.1 million, $26.8 million and $27.0 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

We purchase most of our utilities, including electricity, gas, water and waste water services, from an instrumentality of the Tribe, the Mohegan Tribal Utility Authority. We incurred costs for such utilities totaling $19.3 million, $17.8 million and $18.7 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

2009 Mohegan Tribe Promissory Note

In September 2009, the Tribe made a $10.0 million loan to Salishan-Mohegan, LLC, or Salishan-Mohegan, referred to herein as the 2009 Mohegan Tribe promissory note. The 2009 Mohegan Tribe promissory note was amended in June 2014 to extend the maturity date to September 30, 2015. The 2009 Mohegan Tribe promissory note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) $1.2 million per quarter, commencing December 31, 2013 through March 31, 2014 and (ii) $1.3 million on June 30, 2015, with the balance of accrued and unpaid interest due at maturity. As amended, principal outstanding under the 2009 Mohegan Tribe promissory note amortizes as follows: (i) $1.625 million per quarter, commencing December 31, 2012 through September 30, 2013, (ii) $875,000 per quarter, commencing December 31, 2013 through March 31, 2014, (iii) $875,000 on June 30, 2015 and (iv) $875,000 at maturity. We incurred interest expense associated with the

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2009 Mohegan Tribe promissory note totaling $240,000, $752,000 and $1.2 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

2012 Mohegan Tribe Minor's Trust Promissory Note

In March 2012, Comerica Bank & Trust, N.A., Trustee f/b/o The Mohegan Tribe of Indians of Connecticut Minor's Trust, made a $20.0 million loan to Salishan-Mohegan, referred to herein as the 2012 Mohegan Tribe Minor's Trust promissory note. The 2012 Mohegan Tribe Minor's Trust promissory note was amended in June 2014 to extend the maturity date to March 31, 2017. The 2012 Mohegan Tribe Minor's Trust promissory note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) quarterly, commencing June 30, 2012 through March 31, 2014, (ii) on July 1, 2014 on the unpaid balance for the period April 1, 2014 through June 30, 2014, (iii) $800,000 per quarter, commencing September 30, 2015 through March 31, 2016 and (iv) quarterly, thereafter on the unpaid balance. As amended, principal outstanding under the 2012 Mohegan Tribe Minor's Trust promissory note amortizes as follows: (i) $500,000 per quarter, commencing December 31, 2012 through March 31, 2014, (ii) $500,000 on July 1, 2014 and September 30, 2015, (iii) $1.5 million per quarter, commencing December 31, 2015 through September 30, 2016 and (iv) $10.0 million at maturity. We incurred interest expense associated with the 2012 Mohegan Tribe Minor's Trust promissory note totaling $1.7 million, $1.9 million and $1.0 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

2013 Mohegan Tribe Promissory Note

In March 2013, Mohegan Gaming & Hospitality, LLC, or MG&H, purchased and acquired all of the Tribe's membership interest in MG&H in exchange for a promissory note in the principal amount of $7.4 million, or the 2013 Mohegan Tribe promissory note. The 2013 Mohegan Tribe promissory note matures on December 31, 2018. The 2013 Mohegan Tribe promissory note accrues interest at an annual rate of 4.0% payable quarterly. We incurred interest expense associated with the 2013 Mohegan Tribe promissory note totaling $297,000 and $151,000 for the fiscal years ended September 30, 2014 and 2013, respectively.

Mohegan Tribe Credit Facility

In March 2012, the Tribe extended a revolving credit facility issued to Salishan-Mohegan with a borrowing capacity of $1.45 million, or the Mohegan Tribe credit facility. The Mohegan Tribe credit facility matured on September 30, 2013. As of September 30, 2013, no amount was outstanding under the Mohegan Tribe credit facility. We incurred interest expense associated with the Mohegan Tribe credit facility totaling $135,000 and $202,000 for the fiscal years ended September 30, 2013 and 2012, respectively.

Leases

We lease the land on which Mohegan Sun is located from the Tribe under a long-term lease agreement. The agreement requires us to make a nominal annual rental payment. This lease has an initial term of 25 years and is renewable for an additional 25-year term upon expiration. In addition, in July 2008, we entered into a land lease agreement with the Tribe, replacing a prior land lease agreement, relating to property located adjacent to the Tribe's reservation that is utilized by Mohegan Sun for employee parking. This agreement requires us to make monthly payments equaling $75,000 until maturity on June 30, 2018. We classified this lease as a capital lease for financial reporting purposes due to the existence of a bargain purchase option at the expiration of the lease.

Mohegan Tribal Employment Rights Ordinance

In September 1995, the Tribe adopted the Mohegan Tribal Employment Rights Ordinance, as amended from time to time, or the TERO, which sets forth hiring and contracting preference requirements for employers and entities conducting business on Tribal lands on or adjacent to the Mohegan Reservation. Pursuant to the TERO, we and other covered employers are required to give hiring, promotion, training, retention and other employment-related preferences to Native Americans who meet the minimum qualifications for the applicable employment position. However, this preference requirement does not apply to key employees as such persons are defined under the TERO.

Similarly, any entity awarding a contract or subcontract valued up to $200,000 to be performed on Tribal lands must give preference, first, to certified Mohegan entities submitting commercially responsible bids, and second, to other certified Native American entities. This contracting preference is conditioned upon the bid by the preferred certified entity being within 5% of the lowest bid by a non-certified entity. Contracts in excess of $200,000 are awarded to the lowest commercially responsible bidder, on a competitive basis, with preference to certified Mohegan entities and then other certified Native American entities in the event of a matching bid. The TERO establishes procedures and requirements for certifying Mohegan entities and other Native American entities. Certification is based largely on the level of ownership and control exercised by the members of the Tribe or other Native American tribes, as the case may be, over the entity bidding on a contract.

As of September 30, 2014, we employed approximately 125 membersof the Tribe.

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Corporate Governance and Management Board Independence

We are governed by a nine-member Management Board, whose members also comprise the Mohegan Tribal Council, or Tribal Council, the governing body of the Tribe. Any change in the composition of the Tribal Council results in a corresponding change in our Management Board. Upon election, each Tribal Council and Management Board member serves a four-year term on a staggered basis. Incumbent members of the Tribal Council do not nominate or otherwise identify candidates for election. Accordingly, the Tribal Council and Management Board do not screen candidates for election nor do they maintain a nominating committee. Instead, the registered voters of the Tribe elect all members of the Tribal Council. In order to qualify for, and seek election to a position on the Tribal Council, an individual: (1) must be at least 21 years of age prior to the date of the election, (2) must be a registered voting member of the Tribe in good standing, (3) must not have been convicted of any violation of the Tribal Election Ordinance and (4) must not have been convicted of either a felony or a misdemeanor involving moral integrity, such as forgery or bribery.

As described above, members of the Management Board also are members of the Tribe and the Tribal Council. Due to the relationships between us and the Tribe, as described above, none of the Management Board members would qualify as “independent directors” within the rules of The New York Stock Exchange or the NASDAQ Stock Market.

Item 14. Principal Accounting Fees and Services.

The following table presents the aggregate fees paid or accrued for professional services rendered by PricewaterhouseCoopers LLP:

	Fiscal 2014		Fiscal 2013
Audit fees	$	868,546	$	883,800
Tax fees	40,500		16,500
All other fees	5,000		4,000
Total	$	914,046	$	904,300

Audit fees include fees for our annual audit, quarterly reviews and services rendered in connection with regulatory filings with the Securities and Exchange Commission, such as the issuance of comfort letters and consents. Tax fees include fees for the preparation of tax returns of certain subsidiaries. All other fees include fees for the licensure of accounting and finance research technology owned by PricewaterhouseCoopers LLP.

All above services were pre-approved by the Audit Committee, which concluded that the provision of such services by PricewaterhouseCoopers LLP was compatible with the maintenance of that firm’s independence in the conduct of its auditing functions. The Audit Committee’s outside auditor independence policy provides for pre-approval of all services performed by outside auditors.

69

PART IV

Item 15. Exhibits, Financial Statement Schedules.

A(1). Financial Statements

The following financial information appear in this Annual Report on Form 10-K beginning on page F-1 and are incorporated by reference in Part II, Item 8:

Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets of the Mohegan Tribal Gaming Authority as of September 30, 2014 and 2013	F-3
Consolidated Statements of Income (Loss) of the Mohegan Tribal Gaming Authority for the Fiscal Years Ended September 30, 2014, 2013 and 2012	F-4
Consolidated Statements of Changes in Capital of the Mohegan Tribal Gaming Authority for the Fiscal Years Ended September 30, 2014, 2013 and 2012	F-5
Consolidated Statements of Cash Flows of the Mohegan Tribal Gaming Authority for the Fiscal Years Ended September 30, 2014, 2013 and 2012	F-6
Notes to Consolidated Financial Statements of the Mohegan Tribal Gaming Authority	F-8

A(2). Financial Statement Schedules

The following schedule appears on page S-1 in this Annual Report on Form 10-K and is incorporated by reference herein:

Schedule II—Valuation and Qualifying Accounts and Reserves for the fiscal years ended September 30, 2014, 2013 and 2012.

All other financial statement schedules have been omitted because they are not applicable or the required information is included in the consolidated financial statements or the notes thereto.

A(3). Exhibits

The exhibits to this Annual Report on Form 10-K are listed on the exhibit index, which appears elsewhere herein and is incorporated by reference herein.

70

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Mohegan Tribal Gaming Authority has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned thereunto duly authorized on December 24, 2014.

MOHEGAN TRIBAL GAMING AUTHORITY
By:	/s/    KEVIN P. BROWN
	Kevin P. Brown Chairman, Management Board

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed by the following persons on behalf of the Mohegan Tribal Gaming Authority and in the capacities indicated on December 24, 2014.

SIGNATURE	TITLE
/S/    KEVIN P. BROWN	Chairman and Member, Management Board
Kevin P. Brown
/S/    RALPH JAMES GESSNER JR.	Vice Chairman and Member, Management Board
Ralph James Gessner Jr.
/S/    MITCHELL GROSSINGER ETESS	Chief Executive Officer, Mohegan Tribal Gaming Authority (Principal Executive Officer)
Mitchell Grossinger Etess
/S/    MARIO C. KONTOMERKOS	Chief Financial Officer, Mohegan Tribal Gaming Authority (Principal Financial and Accounting Officer)
Mario C. Kontomerkos
/S/    CHERYL A. TODD	Recording Secretary and Member, Management Board
Cheryl A. Todd
/S/    KATHLEEN M. REGAN-PYNE	Corresponding Secretary and Member, Management Board
Kathleen M. Regan-Pyne
/S/    THAYNE D. HUTCHINS JR.	Treasurer and Member, Management Board
Thayne D. Hutchins Jr.
/S/    MARK F. BROWN	Member, Management Board
Mark F. Brown
/S/    BRUCE S. BOZSUM	Member, Management Board
Bruce S. Bozsum
/S/    WILLIAM QUIDGEON JR.	Member, Management Board
William Quidgeon Jr.
/S/    MARK M. SPERRY	Member, Management Board
Mark M. Sperry

71

Supplemental information to be furnished with reports filed pursuant to Section 15(d) of the Securities Exchange Act of 1934 by registrants which have not registered securities pursuant to Section 12 of the Securities Exchange Act of 1934.

The Mohegan Tribal Gaming Authority has not sent an annual report or proxy statement to security holders. The Mohegan Tribal Gaming Authority will not be sending an annual report or proxy statement to security holders subsequent to the filing of this Annual Report on Form 10-K.

72

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets of the Mohegan Tribal Gaming Authority as of September 30, 2014 and 2013	F-3
Consolidated Statements of Income (Loss) of the Mohegan Tribal Gaming Authority for the Fiscal Years Ended September 30, 2014, 2013 and 2012	F-4
Consolidated Statements of Changes in Capital of the Mohegan Tribal Gaming Authority for the Fiscal Years Ended September 30, 2014, 2013 and 2012	F-5
Consolidated Statements of Cash Flows of Mohegan Tribal Gaming Authority for the Fiscal Years Ended September 30, 2014, 2013 and 2012	F-6
Notes to Consolidated Financial Statements of the Mohegan Tribal Gaming Authority	F-8

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Management Board of

the Mohegan Tribal Gaming Authority:

In our opinion, the consolidated financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of the Mohegan Tribal Gaming Authority and its subsidiaries (the "Authority") at September 30, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended September 30, 2014 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the index appearing under Item 15(a)(2), Schedule II-Valuation and Qualifying Accounts and Reserves, presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. These financial statements and financial statement schedule are the responsibility of the Authority’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Hartford, CT

December 24, 2014

F-2

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED BALANCE SHEETS

(in thousands)

	September 30, 2014			September 30, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	49,108		$	63,624
Restricted cash	675			13,757
Receivables, net	30,640			26,142
Inventories	14,544			13,990
Other current assets	16,997			20,518
Total current assets	111,964			138,031
Non-current assets:
Property and equipment, net	1,424,068			1,476,175
Goodwill	39,459			39,459
Other intangible assets, net	405,109			405,518
Other assets, net	75,360			76,967
Total assets	$	2,055,960		$	2,136,150
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	29,308		$	25,219
Current portion of relinquishment liability	25,194			62,947
Due to Mohegan Tribe	2,250			6,308
Current portion of capital leases	793			2,302
Trade payables	24,086			10,531
Construction payables	5,832			11,011
Accrued interest payable	8,659			23,296
Other current liabilities	127,175			123,982
Total current liabilities	223,297			265,596
Non-current liabilities:
Long-term debt, net of current portion	1,675,958			1,628,173
Relinquishment liability, net of current portion	—			11,418
Due to Mohegan Tribe, net of current portion	23,420			23,420
Capital leases, net of current portion	2,345			3,138
Other long-term liabilities	6,113			5,020
Total liabilities	1,931,133			1,936,765
Commitments and Contingencies
Capital:
Retained earnings	125,058			199,236
Mohegan Tribal Gaming Authority capital	125,058			199,236
Non-controlling interests	(231		)	149
Total capital	124,827			199,385
Total liabilities and capital	$	2,055,960		$	2,136,150

The accompanying notes are an integral part of these consolidated financial statements.

F-3

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands)

	For the			For the			For the
	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 30, 2014			September 30, 2013			September 30, 2012
Revenues:
Gaming	$	1,133,563		$	1,190,202		$	1,254,558
Food and beverage	91,655			86,251			92,149
Hotel	47,310			40,873			39,609
Retail, entertainment and other	119,134			118,559			112,194
Gross revenues	1,391,662			1,435,885			1,498,510
Less-Promotional allowances	(98,944		)	(95,857		)	(99,197		)
Net revenues	1,292,718			1,340,028			1,399,313
Operating costs and expenses:
Gaming	687,021			708,929			771,909
Food and beverage	41,482			41,575			44,949
Hotel	15,807			14,339			14,293
Retail, entertainment and other	50,945			43,859			40,723
Advertising, general and administrative	190,639			192,673			198,171
Corporate	41,036			28,122			17,379
Depreciation and amortization	80,126			80,317			85,030
(Gain) loss on disposition of assets	(9		)	241			353
Severance	—			29			12,521
Pre-opening	1,187			687			—
Impairment of Project Horizon	4,981			—			—
Relinquishment liability reassessment	(1,905		)	(249		)	(11,439		)
Total operating costs and expenses	1,111,310			1,110,522			1,173,889
Income from operations	181,408			229,506			225,424
Other income (expense):
Accretion of discount to the relinquishment liability	(2,205		)	(4,974		)	(8,248		)
Interest income	7,066			6,271			4,492
Interest expense, net of capitalized interest	(147,933		)	(170,150		)	(146,057		)
Loss on early extinguishment of debt	(62,041		)	(11,516		)	(14,326		)
Other expense, net	(853		)	(1,595		)	(44		)
Total other expense	(205,966		)	(181,964		)	(164,183		)
Net income (loss)	(24,558		)	47,542			61,241
Loss attributable to non-controlling interests	380			2,784			2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	50,326		$	63,260

The accompanying notes are an integral part of these consolidated financial statements.

F-4

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL

(in thousands)

	Total			Mohegan Tribal  Gaming Authority			Non-controlling       Interests
Balance, September 30, 2011	$	198,724		$	196,403		$	2,321
Cumulative-effect of adoption of amendments to ASC 924 regarding jackpot liabilities	1,968			1,968			—
Contributions from members	280			—			280
Net income (loss)	61,241			63,260			(2,019		)
Distributions to Mohegan Tribe	(52,950		)	(52,950		)	—
Balance, September 30, 2012	209,263			208,681			582
Net income (loss)	47,542			50,326			(2,784		)
Distributions to Mohegan Tribe	(50,000		)	(50,000		)	—
Repurchase of membership interest	(7,420		)	(9,771		)	2,351
Balance, September 30, 2013	199,385			199,236			149
Net loss	(24,558		)	(24,178		)	(380		)
Distributions to Mohegan Tribe	(50,000		)	(50,000		)	—
Balance, September 30, 2014	$	124,827		$	125,058		$	(231	)

The accompanying notes are an integral part of these consolidated financial statements.

F-5

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	For the			For the			For the
	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 30, 2014			September 30, 2013			September 30, 2012
Cash flows provided by (used in) operating activities:
Net income (loss)	$	(24,558	)	$	47,542		$	61,241
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:
Depreciation and amortization	80,126			80,317			85,030
Relinquishment liability reassessment	(1,905		)	(249		)	(11,439		)
Accretion of discount to the relinquishment liability	2,205			4,974			8,248
Cash paid for accretion of discount to the relinquishment liability	(2,897		)	(5,792		)	(9,028		)
Loss on early extinguishment of debt	58,245			4,531			14,326
Payments of tender offer costs and discounts	(48,155		)	(3,104		)	—
Amortization of debt issuance costs and accretion of bond discounts	8,037			12,285			9,987
Amortization of net deferred gain on settlement of derivative instruments	—			(76		)	(255		)
Provision for losses on receivables	6,146			3,436			3,189
Impairment of Project Horizon	4,981			—			—
(Gain) loss on disposition of assets	(9		)	241			353
Loss from unconsolidated affiliates	826			1,553			—
Changes in operating assets and liabilities:
Increase in receivables	(7,159		)	(648		)	(7,676		)
(Increase) decrease in inventories	(554		)	448			(410		)
(Increase) decrease in other assets	(3,531		)	2,759			(4,859		)
Increase (decrease) in trade payables	13,419			(2,143		)	(4,778		)
Increase (decrease) in accrued interest	(14,637		)	(23,066		)	17,782
Increase (decrease) in other liabilities	2,436			(20,057		)	15,286
Net cash flows provided by operating activities	73,016			102,951			176,997
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of increase (decrease) in construction payables of $(5,179), $5,948 and $(3,829), respectively	(35,079		)	(59,597		)	(47,471		)
Issuance of third-party loans and advances	(1,804		)	(2,033		)	(923		)
Payments received on third-party loans	644			139			146
(Increase) decrease in restricted cash, net	13,679			33,078			(45,231		)
Proceeds from asset sales	134			216			143
Investments in unconsolidated affiliates	(29		)	(4,971		)	—
Proceeds from Commonwealth of Pennsylvania’s facility improvement grant	—			—			2,000
Net cash flows used in investing activities	(22,455		)	(33,168		)	(91,336		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving	—			3,000			154,000
Prior Bank Credit Facility repayments - Revolving	—			(3,000		)	(289,000		)
Prior Bank Credit Facility repayments - Term	(393,000		)	(4,000		)	(3,000		)
Prior Term Loan Facility borrowings, net of discount	—			—			220,500
Prior Term Loan Facility repayments, net of discount	(222,103		)	—			—
Senior Secured Credit Facility borrowings - Revolving	310,000			—			—
Senior Secured Credit Facility repayments - Revolving	(273,000		)	—			—
Senior Secured Credit Facility borrowings - Term Loan A, net of discount	124,343			—			—
Senior Secured Credit Facility repayments - Term Loan A	(3,125		)	—			—
Senior Secured Credit Facility borrowings - Term Loan B, net of discount	720,952			—			—
Senior Secured Credit Facility repayments - Term Loan B	(5,475		)	—			—
Line of Credit borrowings	356,796			24,897			225,215
Line of Credit repayments	(353,755		)	(24,897		)	(225,215		)
Borrowings from Mohegan Tribe	—			—			20,600
Repayments to Mohegan Tribe	(3,250		)	(9,950		)	—
Proceeds from issuance of Senior Unsecured Notes	—			500,000			—
Repayments of other long-term debt	(212,323		)	(495,601		)	(66,454		)
Salishan-Mohegan Bank Credit Facility repayments - Revolving	—			—			(15,250		)

F-6

Downs Lodging Credit Facility borrowings - Term	—			—			45,000
Principal portion of relinquishment liability payments	(46,574		)	(45,350		)	(45,258		)
Distributions to Mohegan Tribe	(50,000		)	(50,000		)	(52,950		)
Payments of financing fees	(12,395		)	(11,957		)	(51,513		)
Payments on capital lease obligations	(2,168		)	(3,385		)	(706		)
Non-controlling interest contributions	—			—			280
Net cash flows used in financing activities	(65,077		)	(120,243		)	(83,751		)
Net increase (decrease) in cash and cash equivalents	(14,516		)	(50,460		)	1,910
Cash and cash equivalents at beginning of year	63,624			114,084			112,174
Cash and cash equivalents at end of year	$	49,108		$	63,624		$	114,084
Supplemental disclosures:
Cash paid during the year for interest	$	153,481		$	180,657		$	118,225
Repurchase of membership interest	$	—		$	7,420		$	—
Capital lease	$	—		$	—		$	4,189

The accompanying notes are an integral part of these consolidated financial statements.

F-7

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION:

The Mohegan Tribe of Indians of Connecticut (the “Mohegan Tribe” or the “Tribe”) established the Mohegan Tribal Gaming Authority (the “Authority”) in July 1995 with the exclusive authority to conduct and regulate gaming activities for the Tribe on Tribal lands and the non-exclusive authority to conduct such activities elsewhere. The Tribe is a federally-recognized Indian tribe with an approximately 544-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. Under the Indian Gaming Regulatory Act of 1988 ("IGRA"), federally-recognized Indian tribes are permitted to conduct full-scale casino gaming operations on tribal lands, subject to, among other things, the negotiation of a compact with the affected state. The Tribe and the State of Connecticut entered into a compact (the “Mohegan Compact”), which was approved by the United States Secretary of the Interior. The Authority is primarily engaged in the ownership, operation and development of gaming facilities. In October 1996, the Authority opened Mohegan Sun, a gaming and entertainment complex situated on a 185-acre site on the Tribe's reservation. The Authority is governed by a nine-member Management Board, whose members also comprise the Mohegan Tribal Council, the governing body of the Tribe. Any change in the composition of the Mohegan Tribal Council results in a corresponding change in the Authority's Management Board.

As of September 30, 2014, the following subsidiaries were wholly-owned by the Authority: Mohegan Basketball Club, LLC (“MBC”), Mohegan Golf, LLC (“Mohegan Golf”), Mohegan Commercial Ventures-PA, LLC (“MCV-PA”), Mohegan Ventures-Northwest, LLC (“Mohegan Ventures-NW”), Mohegan Ventures Wisconsin, LLC (“MVW”), MTGA Gaming, LLC (“MTGA Gaming”), Downs Lodging, LLC ("Downs Lodging") and Mohegan Gaming Advisors, LLC ("Mohegan Gaming Advisors").

MBC owns and operates the Connecticut Sun, a professional basketball team in the Women's National Basketball Association (the “WNBA”). MBC currently owns a 4.2% membership interest in WNBA, LLC.

Mohegan Golf owns and operates the Mohegan Sun Golf Club in Southeastern Connecticut.

MCV-PA holds a 0.01% general partnership interest in each of Downs Racing, L.P., Backside, L.P., Mill Creek Land, L.P. and Northeast Concessions, L.P. (collectively, along with MCV-PA, the “Pocono Downs Subsidiaries”), while the Authority holds the remaining 99.99% limited partnership interest in each entity. Downs Racing, L.P. (“Downs Racing”) owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility situated on a 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania (collectively, the “Pennsylvania Facilities”). The Authority views Mohegan Sun and the Pennsylvania Facilities as two separate operating segments.

Mohegan Ventures-NW and a subsidiary of the Tribe hold 49.15% and 10.85% membership interests in Salishan-Mohegan, LLC (“Salishan-Mohegan”), respectively. Salishan-Mohegan was formed with an unrelated third-party to participate in the development and management of a proposed casino to be owned by the federally-recognized Cowlitz Indian Tribe of Washington (the “Cowlitz Tribe”) and to be located in Clark County, Washington (the “Cowlitz Project”). Salishan-Mohegan holds 100% membership interests in Salishan-Mohegan Two, LLC ("Salishan-Mohegan Two") and Interchange Development Group, LLC ("Interchange Development Group"), both of which were formed to acquire certain property related to the Cowlitz Project.

MVW holds a 100% membership interest in Wisconsin Tribal Gaming, LLC (“WTG”), which was formed to participate in the development of a proposed casino to be owned by the federally-recognized Menominee Indian Tribe of Wisconsin (the “Menominee Tribe”) and to be located in Kenosha, Wisconsin (the “Menominee Project”).

MTGA Gaming holds a 100% membership interest in Mohegan Gaming & Hospitality, LLC (“MG&H”), an unrestricted subsidiary of the Authority. MG&H holds a 100% membership interest in Mohegan Resorts, LLC (“Mohegan Resorts”). Mohegan Resorts holds a 100% membership interest in Mohegan Resorts Mass, LLC, which was formed to pursue potential gaming opportunities in the Commonwealth of Massachusetts. Mohegan Resorts also holds 100% membership interests in Mohegan Resorts New York, LLC and Mohegan Gaming New York, LLC (collectively, the “Mohegan New York Entities”). The Mohegan New York Entities were formed to pursue potential gaming opportunities in the State of New York.

Downs Lodging, an unrestricted subsidiary of the Authority, was formed to develop, finance and build Project Sunlight, a hotel and convention center located at Mohegan Sun at Pocono Downs.

Mohegan Gaming Advisors, an unrestricted subsidiary of the Authority, was formed to pursue gaming opportunities outside the State of Connecticut, including management contracts and consulting agreements for casino and entertainment properties

F-8

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

in the United States. Mohegan Gaming Advisors holds 100% membership interests in MGA Holding NJ, LLC ("MGA Holding NJ") and MGA Gaming NJ, LLC (collectively, the "Mohegan New Jersey Entities"). The Mohegan New Jersey Entities were formed to pursue management contracts and consulting agreements in the State of New Jersey. In October 2012, MGA Holding NJ acquired a 10% ownership interest in Resorts Casino Hotel in Atlantic City, New Jersey ("Resorts Atlantic City").

Mohegan Gaming Advisors also holds 100% membership interests in MGA Holding MA, LLC (“MGA Holding MA”) and MGA Gaming MA, LLC (“MGA Gaming MA”). MGA Holding MA holds a 100% membership interest in MGA Palmer Partners, LLC (“MGA Palmer Partners”). MGA Palmer Partners holds a 100% membership interest in Mohegan Sun Massachusetts, LLC (together with MGA Holding MA, MGA Gaming MA and MGA Palmer Partners, the “Mohegan MA Entities”). The Mohegan MA Entities were formed to pursue potential gaming opportunities in the Commonwealth of Massachusetts.

In addition, Mohegan Gaming Advisors holds 100% membership interests in MGA Holding PA, LLC and MGA Gaming PA, LLC (collectively, the “Mohegan PA Entities”). The Mohegan PA Entities were formed to pursue potential gaming opportunities in the Commonwealth of Pennsylvania.

Additionally, Mohegan Gaming Advisors holds a 100% membership interest in MGA Holding FL, LLC (“MGA Holding FL”). MGA Holding FL holds a 100% membership interest in MGA Miami, LLC (together with MGA Holding FL, the “Mohegan FL Entities”). The Mohegan FL Entities were formed to pursue potential gaming opportunities in the State of Florida.

NOTE 2—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Authority and its majority and wholly-owned subsidiaries and entities. In accordance with authoritative guidance issued by the Financial Accounting Standards Board (the “FASB”) pertaining to consolidation of variable interest entities, the accounts of Salishan-Mohegan are consolidated into the accounts of Mohegan Ventures-NW, as Mohegan Ventures-NW is deemed to be the primary beneficiary. In consolidation, all inter-company balances and transactions were eliminated.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Authority to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The most significant estimates included in the accompanying consolidated financial statements relate to reserves for doubtful accounts, asset valuation, the liabilities associated with self-insurance, unredeemed Momentum Dollars and relinquishment, contingencies and litigation. Actual results could differ from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of deposits that can be redeemed on demand and investments with original maturities of less than 90 days. Cash equivalents are carried at cost, which approximates market value. Cash and cash equivalents include all operating cash and in-house funds.

Restricted Cash

Restricted cash consists of deposits that are contractually restricted as to their withdrawal or use. As of September 30, 2014, restricted cash primarily includes cash held by Downs Racing pursuant to the Pennsylvania Race Horse Development and Gaming Act and Pennsylvania state statutes. The Pennsylvania Race Horse Development and Gaming Act requires Downs Racing to deposit a percentage of gross revenues from slot machines into a separate interest bearing account for the benefit of horsemen and breeders. In addition, Pennsylvania state statutes require Downs Racing to deposit net amounts received from the sale of lottery tickets into a separate designated account. As of September 30, 2013, restricted cash primarily includes cash held by Downs Lodging which use was restricted to payments for construction expenditures in connection with Project Sunlight, including construction period interest and expenses.

Receivables

Accounts Receivable

Accounts receivable consists primarily of casino receivables, which represent credit extended to approved casino patrons, and hotel and other non-gaming receivables. The Authority maintains a reserve for doubtful collection, which is based on the

F-9

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Authority’s estimate of the probability that these receivables will be collected. The Authority assesses the adequacy of this reserve by continuously evaluating historical experience, creditworthiness of the related patron and all other available information. Future business or economic trends could affect the collectability of these receivables and the related reserve.

Long-Term Receivables

Long-term receivables consist primarily of receivables from affiliates and others.

Receivables from affiliates, which are included in other assets, net, in the accompanying consolidated balance sheets, consist primarily of reimbursable costs and expenses advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe for the Cowlitz Project (refer to Note 12) and WTG on behalf of the Menominee Tribe for the Menominee Project (refer to Note 13). The Salishan-Mohegan receivables are payable upon: (1) the receipt of necessary financing for the development of the proposed casino and (2) the related property being taken into trust by the United States Department of the Interior. Due to the uncertainty in the development of the Cowlitz Project, the Authority maintains a reserve for doubtful collection of the Salishan-Mohegan receivables, which is based on the Authority's estimate of the probability that the receivables will be collected. The Authority assesses the reserve for doubtful collection of the Salishan-Mohegan receivables for adequacy on a quarterly basis. Future developments in the receipt of financing, the relevant land being taken into trust or other matters affecting the Cowlitz Project could affect the collectability of the Salishan-Mohegan receivables and the related reserve. The WTG receivables are fully reserved. The WTG receivables are payable upon the receipt of necessary financing for the development of the proposed casino, subject to certain conditions.

Receivables from others, which are primarily included in other assets, net, in the accompanying consolidated balance sheets, consist primarily of funds loaned to third-parties in connection with various diversification projects. Receivables from others also include a loan to a tenant at Mohegan Sun. The Authority maintains a reserve for doubtful collection of receivables from others, which is based on the Authority's estimate of the probability that these receivables will be collected considering historical experience, creditworthiness of the related third-parties and tenant and all other available information.

The following table presents a reconciliation of long-term receivables, including current portions, and the related reserves for doubtful collection of these long-term receivables (in thousands):

	Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013 (1)	$	57,782	$	3,530		$	61,312
Additions:
Issuance of affiliate advances and other loans, including interest receivable	8,814		123			8,937
Deductions:
Payments received	—		(1,041		)	(1,041		)
Balance, September 30, 2014 (1)	$	66,596	$	2,612		$	69,208

__________

(1) Includes interest receivable of $35.7 million and $29.1 million as of September 30, 2014 and 2013, respectively. The WTG receivables no longer accrue interest pursuant to a release and reimbursement agreement entered into in September 2010.

	Reserves for Doubtful Collection of Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013	$	24,189	$	61		$	24,250
Additions:
Charges to bad debt expense	2,644		744			3,388
Deductions:
Adjustments	—		(9		)	(9		)
Balance, September 30, 2014	$	26,833	$	796		$	27,629

Inventories

Inventories are stated at the lower of cost or market value and consist primarily of food and beverage, retail, hotel and operating supplies. Cost is determined using the average cost method. The Authority reduces the carrying value of slow-moving inventory to net realizable value, based on the Authority’s estimate of the amount of inventory that may not be utilized in future operations. Future business trends could affect the timely use of inventories.

F-10

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Property and Equipment

Property and equipment are stated at cost. Depreciation is recognized over the estimated useful lives of the assets, other than land, on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Estimated useful lives by asset categories are as follows:

Buildings and land improvements	40 years
Furniture and equipment	3 - 7 years

The costs of significant improvements are capitalized. Costs of normal repairs and maintenance are expensed as incurred. Gains or losses on disposition of property and equipment are reflected in the accompanying consolidated financial statements.

Property and equipment are assessed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If it is determined that the carrying amounts may not be recoverable based on current and future levels of income and cash flows, as well as other factors, an impairment loss will be recognized at such time. During its fourth quarter ended September 30, 2014, the Authority further re-evaluated its plans with respect to the development of the new hotel element of its suspended Project Horizon expansion, which now includes a hotel to be developed and owned by an instrumentality of the Tribe, as well as a third-party developed and owned retail center, and, based on new design plans, including the final location of the planned hotel, the Authority determined that certain design and earthwork related assets did not have any future benefit to the Authority. Accordingly, the Authority recognized a related $5.0 million impairment charge, which was recorded in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014 (refer to Note 4). As of September 30, 2013, the Authority assessed its property and equipment, including assets related to the suspended Project Horizon, for impairment and determined that no impairment existed.

Capitalized Interest

Interest costs incurred in connection with major development and construction projects are capitalized and included in the cost of the related project. Under instances where no debt is directly incurred in connection with a project, interest is capitalized on amounts expended on the project utilizing the weighted-average interest cost of the Authority’s outstanding borrowings. Capitalization of interest ceases when a project is substantially completed or development activity is suspended for an extended period of time.

Goodwill

In accordance with authoritative guidance issued by the FASB pertaining to goodwill, the goodwill associated with the acquisition of the Pennsylvania Facilities is not subject to amortization, but is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of capital expenditures requirements. If the carrying value of the goodwill exceeds its fair value, an impairment loss will be recognized to the extent that the carrying value of the goodwill exceeds its implied fair value. The income approach requires the Authority to make assumptions regarding future revenues and expenses, discount rates and the terminal value based on a market multiple of the Pennsylvania Facilities. As of September 30, 2014 and 2013, the Authority assessed the goodwill for impairment and determined that no impairment existed. If any of the following occurs, the goodwill may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania Facilities are not achieved, (2) if the discount rate increases, (3) if terminal growth rates decrease or (4) if market multiples decrease.

Other Intangible Assets

Intangible assets relate primarily to the Pennsylvania Facilities, Mohegan Sun, MBC and Mohegan Golf.

In connection with the acquisition of the Pennsylvania Facilities, the Authority recorded a slot machine license intangible asset of $214.0 million. In October 2006, a one-time slot machine license fee of $50.0 million was paid to the Pennsylvania Gaming Control Board (the “PGCB”) and added to the existing slot machine license intangible asset. In June 2010, a one-time table game certificate fee of $16.5 million was paid to the PGCB and classified as an intangible asset. The slot machine license and table game certificate intangible assets, with indefinite useful lives, are assessed as a single unit of accounting at least annually for impairment by comparing the fair value of the recorded assets to their carrying value. Their fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of a required rate of return of all other assets and exclusive of capital expenditures requirements. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires the Authority to make assumptions regarding future revenues and expenses, discount rates and the terminal value based on a perpetual growth

F-11

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

rate of the Pennsylvania Facilities. As of September 30, 2014 and 2013, the Authority assessed the intangible assets for impairment and determined that no impairment existed. If any of the following occurs, the intangible assets may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania Facilities are not achieved, (2) if the discount rate increases or (3) if the terminal value decreases.

In connection with a relinquishment agreement (refer to Note 11), Trading Cove Associates (“TCA”) granted the Authority an exclusive, irrevocable, perpetual, world-wide and royalty-free license with respect to trademarks and other similar rights, including the “Mohegan Sun” name. The Mohegan Sun trademark intangible asset of $119.7 million is deemed to have an indefinite useful life and is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing the income approach – relief from royalty method based on projected revenues from Mohegan Sun and Mohegan Sun at Pocono Downs. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires the Authority to make assumptions regarding future revenues, discount rates, royalty rate and the terminal value based on a perpetual growth rate of Mohegan Sun and Mohegan Sun at Pocono Downs. As of September 30, 2014 and 2013, the Authority assessed the Mohegan Sun trademark for impairment and determined that no impairment existed. If any of the following occurs, the Mohegan Sun trademark may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from Mohegan Sun and Mohegan Sun at Pocono Downs are not achieved, (2) if the discount rate increases or (3) if the perpetual growth rate decreases.

In connection with the acquisitions of the WNBA franchise and the assets of Pautipaug Country Club Inc., the Authority recorded a franchise value intangible asset and a membership intangible asset, respectively. These intangible assets, with definite useful lives, are assessed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. As of September 30, 2014 and 2013, the Authority assessed these intangible assets for impairment and determined that no impairment existed.

Deferred Financing Costs

Debt issuance costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis, which approximates the effective interest method. Unamortized amounts are included in other assets, net, in the accompanying consolidated balance sheets.

Self-insurance Accruals

The Authority is self-insured up to certain limits for costs associated with workers’ compensation, general liability and employee medical coverage. Insurance claims and reserves include accruals of estimated settlements of known claims, as well as accruals of estimates of incurred but not reported claims. These accruals are included in other current liabilities in the accompanying consolidated balance sheets. In estimating self-insurance accruals, the Authority considers historical loss experiences and expected levels of costs per claim. Claims are accounted for based on estimates of undiscounted claims, including claims incurred but not reported. The Authority believes that this method provides a consistent and effective way to measure these liabilities; however, changes in health care costs, accident frequency and severity and other factors could materially impact estimated liabilities. The Authority continuously monitors estimates and makes adjustments when necessary.

Unredeemed Momentum Dollars

The Authority maintains an accrual for unredeemed Momentum Dollars. This accrual is based on the estimated cost of Momentum Dollars expected to be redeemed as of the respective balance sheet date. The Authority assesses the adequacy of this accrual by periodically evaluating historical redemption experiences and projected trends related to the accrual. Actual results could differ from these estimates.

Base Jackpots

Base jackpots represent the fixed minimum amount of payouts from slot machines for a specific combination. The Authority recognizes base jackpots as reductions to revenues when it becomes obligated to pay such jackpots.

F-12

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Relinquishment Liability

In accordance with authoritative guidance issued by the FASB pertaining to the accounting for contingencies, the Authority recorded a relinquishment liability based on the estimated present value of its obligations under a relinquishment agreement with TCA (refer to Note 11). The Authority reassesses projected revenues and consequently the relinquishment liability: (1) annually in conjunction with its budgeting process or (2) when necessary to account for material increases or decreases in projected revenues over the relinquishment period. If the reassessment results in an overall increase in projected revenues over the relinquishment period, the relinquishment liability is increased by 5% of such increase in revenues, discounted at the Authority’s risk-free rate of investment, which is an incremental layer. If the reassessment results in an overall decrease to projected revenues over the relinquishment period, the relinquishment liability is decreased by 5% of such decrease in revenues, discounted on the basis of a weighted-average discount rate, which is a decremental layer. The weighted-average discount rate is defined as the average discount rate utilized to discount all previous incremental layers weighted by the amount of each incremental layer. In addition, the Authority recognizes a quarterly accretion to the relinquishment liability to reflect the impact of the time value of money. Since the calculation of this liability requires a high level of estimates and judgments (including those related to projected revenues and impact and timing of future competition), future events that affect such estimates and judgments may cause the actual liability to materially differ from the current estimate.

Fair Value of Financial Instruments

The fair value amounts presented below are reported to satisfy disclosure requirements pursuant to authoritative guidance issued by the FASB pertaining to disclosures about fair values of financial instruments and are not necessarily indicative of amounts that the Authority could realize in a current market transaction.

The Authority applies the following fair value hierarchy, which prioritizes the inputs utilized to measure fair value into three levels:

• Level 1 - Quoted prices for identical assets or liabilities in active markets;

• Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets or valuations based on models where the significant inputs are observable or can be corroborated by observable market data; and

• Level 3 - Valuations based on models where the significant inputs are unobservable. The unobservable inputs reflect the Authority's estimates or assumptions that market participants would utilize in pricing such assets or liabilities.

The Authority's assessment of the significance of a particular input requires judgment and may affect the valuation of financial assets and liabilities and their placement within the fair value hierarchy.

The carrying amount of cash and cash equivalents, receivables, trade payables and promissory notes and certain credit facilities approximates fair value. The estimated fair value of the Authority's financing facilities and notes were as follows (in thousands):

	September 30, 2014
	Carrying Value		Fair Value
Senior Secured Credit Facility - Revolving	$	37,000	$	36,676
Senior Secured Credit Facility - Term Loan A	$	119,789	$	117,304
Senior Secured Credit Facility - Term Loan B	$	716,188	$	710,940
2013 9 3/4% Senior Unsecured Notes	$	500,000	$	505,625
2005 6 7/8% Senior Subordinated Notes	$	9,654	$	9,654
2012 11% Senior Subordinated Notes	$	271,684	$	274,846

The estimated fair values of the Authority's financing facilities and notes were based on Level 2 inputs (quoted market prices or prices of similar instruments) on or about September 30, 2014.

Revenue Recognition

The Authority recognizes gaming revenues as amounts wagered less prizes paid out. Revenues from food and beverage, hotel, retail, entertainment and other services are recognized at the time such service is performed. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rental revenues are recognized in the periods in which the tenants exceed their respective percentage rent thresholds.

F-13

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Promotional Allowances

The Authority operates a program, without membership fees, for patrons at Mohegan Sun, Mohegan Sun at Pocono Downs and its managed property, Resorts Atlantic City. This program provides complimentary food and beverage, hotel, retail, entertainment and other services to patrons, as applicable, based on Momentum Dollars that are awarded for patrons’ gaming activities. Momentum Dollars may be utilized to purchase, among other things, items at retail stores and restaurants located within Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. Momentum Dollars also may be utilized at The Shops at Mohegan Sun and the Mohegan Sun gasoline and convenience center, as well as to purchase hotel services and tickets to entertainment events held at facilities located at Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. The retail value of these complimentary items is included in gross revenues when redeemed at facilities operated by the Authority and then deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of complimentary items redeemed at third-party outlets is charged to gaming costs and expenses.

In addition, the Authority offers ongoing promotional coupon programs to patrons for the purchase of food and beverage, hotel and retail amenities offered within Mohegan Sun and Mohegan Sun at Pocono Downs, as applicable. The retail value of items or services purchased with coupons at facilities operated by the Authority is included in gross revenues and the respective coupon value is deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of coupons redeemed at third-party outlets is charged to gaming costs and expenses.

The retail value of providing promotional allowances was included in revenues as follows (in thousands):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Food and beverage	$	43,264	$	38,390	$	40,925
Hotel	14,721		13,799		14,127
Retail, entertainment and other	40,959		43,668		44,145
Total	$	98,944	$	95,857	$	99,197

The estimated cost of providing promotional allowances was included in gaming costs and expenses as follows (in thousands):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Food and beverage	$	37,936	$	34,194	$	37,140
Hotel	8,979		7,216		7,754
Retail, entertainment and other	36,772		40,167		40,501
Total	$	83,687	$	81,577	$	85,395

In certain circumstances, the Authority also offers discounts on patron losses and cash inducements at Mohegan Sun and Mohegan Sun at Pocono Downs, which are recognized as reductions to gaming revenues. Reductions to gaming revenues related to discounts provided on patron losses totaled $12.2 million, $11.0 million and $10.7 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Reductions to gaming revenues related to Momentum Dollars redeemed for cash totaled $1.3 million, $1.4 million and $1.1 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

Gaming Costs and Expenses

Gaming costs and expenses primarily include portions of gaming revenues that must be paid to the State of Connecticut and the PGCB. Gaming costs and expenses also include, among other things, payroll costs, expenses associated with the operation of slot machines, table games, poker, live harness racing and racebook, certain marketing expenditures and promotional expenses related to Momentum Dollar and coupon redemptions.

Advertising Costs and Expenses

Production costs are expensed the first time the advertisement takes place. Prepaid rental fees associated with billboard advertisements are capitalized and amortized over the terms of the related rental agreements. Advertising costs and expenses totaled $26.7 million, $28.2 million and $28.2 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, prepaid advertising was $142,000 and $19,000, respectively.

F-14

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Corporate Costs and Expenses

Corporate costs and expenses represent an allocation of certain governmental and administrative costs, payroll costs, professional fees and various other expenses not directly related to the Authority’s operations at Mohegan Sun or Mohegan Sun at Pocono Downs. In addition, Corporate costs and expenses include costs associated with various gaming diversification efforts, which are expensed as incurred, except when reimbursable by a third-party.

Severance Costs and Expenses

In September 2012, the Authority implemented a workforce reduction of approximately 330 positions in Uncasville, Connecticut, in an effort to further streamline its organization and better align operating costs with current market and business conditions. The costs associated with related post-employment severance benefits were expensed at the time the termination was communicated to the employees. Cash payments commenced in October 2012 and were completed in October 2014. The Authority does not anticipate incurring any additional severance charges in connection with this workforce reduction. The following table presents a reconciliation of the related severance liability (in thousands):

	Mohegan Sun
Balance, September 30, 2013	$	1,417
Cash payments	(1,401		)
Balance, September 30, 2014	$	16

Pre-Opening Costs and Expenses

In accordance with authoritative guidance issued by the FASB pertaining to the reporting on the costs of start-up activities, pre-opening costs and expenses are expensed as incurred.

Investments in Unconsolidated Affiliates

In 2012, the Authority, through its indirect wholly-owned subsidiary, MGA Holding NJ, acquired a 10% ownership interest in Resorts Atlantic City. The Authority's investment in Resorts Atlantic City is accounted for under the equity method as the Authority has significant influence.

Income Taxes

The Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land. Like other sovereign governments, the Tribe and its entities, including the Authority, are not subject to federal, state or local income taxes.

Seasonality

The gaming market in the Northeastern United States is seasonal in nature, with peak gaming activities often occurring at Mohegan Sun and Mohegan Sun at Pocono Downs during the months of May through August. Accordingly, the Authority's operating results for the fiscal year ended September 30, 2014 are not necessarily indicative of operating results for interim periods.

New Accounting Standard

In May 2014, the FASB issued an accounting standard update on revenue recognition that will be applied to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance will be required to be applied on a retrospective basis, using one of two methodologies, and will be effective for annual reporting periods beginning after December 15, 2016, with early application not being permitted. The Authority is currently evaluating the impact that this guidance will have on its financial position and results of operations.

In August 2014, the FASB issued an accounting standard update which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The update requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. It also requires management to provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This guidance will be required for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter, with early application permitted. The Authority is currently evaluating the impact that this guidance will have on its financial position and results of operations.

F-15

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 3—RECEIVABLES, NET:

Receivables, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Gaming	$	32,789		$	27,369
Hotel	922			1,731
Other	8,574			7,211
Subtotal	42,285			36,311
Less: reserve for doubtful collection	(11,645		)	(10,169		)
Total receivables, net	$	30,640		$	26,142

NOTE 4—PROPERTY AND EQUIPMENT, NET:

Property and equipment, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Land	$	65,485		$	65,485
Land improvements	97,146			96,735
Buildings and improvements	1,734,673			1,691,924
Furniture and equipment	547,719			541,832
Construction in process	8,011			55,569
Subtotal	2,453,034			2,451,545
Less: accumulated depreciation	(1,028,966		)	(975,370		)
Total property and equipment, net	$	1,424,068		$	1,476,175

Depreciation expense totaled $79.6 million, $79.8 million and $84.5 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Capitalized interest totaled $735,000, $2.0 million and $34,000 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

In September 2008, the Authority suspended certain elements of its Project Horizon expansion due to a slowdown in business volumes and uncertainties in the financial markets. Costs incurred on the suspended elements related to excavation and foundation work for a planned podium and new hotel tower, as well as professional fees for design and architectural work. During its fourth quarter ended September 30, 2010, the Authority re-evaluated its plans with respect to the development of the new hotel element of the project, and based on a modified plan, which encompassed a smaller hotel to be located closer to the existing hotel, determined that certain assets related to the suspended elements did not have any future benefit to the Authority. Accordingly, in fiscal 2010, the Authority recorded a related $58.1 million impairment charge. During its fourth quarter ended September 30, 2014, the Authority further re-evaluated its modified plan, which now includes a hotel to be developed and owned by an instrumentality of the Tribe, as well as a third-party developed and owned retail center, and, based on new design plans, including the final location of the planned hotel, determined that certain design and earthwork related assets did not have any future benefit to the Authority. Accordingly, the Authority recognized a related $5.0 million impairment charge, which is recorded in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014. Of the $5.0 million impairment charge recognized in the fiscal year ended September 30, 2014, approximately $2.0 million relates to conceptual design work associated with the original hotel and should have been written-off in conjunction with the impairment charge recognized in fiscal 2010. The Authority concluded that this error was not material to its previously issued consolidated financial statements and the resulting correction is not material to the accompanying consolidated financial statements. As of September 30, 2014 and 2013, Project Horizon related assets, including related capitalized interest, anticipated to be utilized totaled $4.4 million and $9.4 million, respectively, and were included in construction in process. The Authority continues to evaluate its options with respect to the development of a new hotel and retail center; however, it can provide no assurance regarding if or when this modified plan will commence. If this modified plan does not commence, factors that the Authority will consider in determining the feasibility of a future hotel and retail center include the Authority’s financial performance, project cash flow projections, project costs, financing options, economic conditions, industry trends, demand and competition.

F-16

NOTE 5—OTHER CURRENT ASSETS AND OTHER CURRENT LIABILITIES:

Other current assets consisted of the following (in thousands):

	September 30, 2014		September 30, 2013
Non-qualified deferred compensation	$	9,809	$	9,832
Prepaid expenses and other miscellaneous current assets	7,188		10,686
Total other current assets	$	16,997	$	20,518

Other current liabilities consisted of the following (in thousands):

	September 30, 2014		September 30, 2013
Accrued payroll and related taxes and benefits	$	35,602	$	36,538
Combined outstanding Slot Win Contribution and free promotional slot play contribution	11,617		12,691
Accrued severance	771		2,395
Amounts due to horsemen	8,109		7,805
Other miscellaneous current liabilities	71,076		64,553
Total other current liabilities	$	127,175	$	123,982

NOTE 6—LONG-TERM DEBT:

Long-term debt consisted of the following (in thousands, including current maturities):

	September 30, 2014			September 30, 2013
Prior Bank Credit Facility	$	—		$	393,000
Prior Term Loan Facility, net of discount of $3,005	—			221,995
Senior Secured Credit Facility - Revolving, due June 2018	37,000			—
Senior Secured Credit Facility - Term Loan A, due June 2018, net of discount of $523	119,789			—
Senior Secured Credit Facility - Term Loan B, due June 2018, net of discount of $8,337	716,188			—
2009 11 1/2% Second Lien Senior Secured Notes, net of discount of $5	—			195
2012 11 1/2% Second Lien Senior Secured Notes, net of discount of $8,898	—			190,902
2013 9 3/4% Senior Unsecured Notes, due September 2021	500,000			500,000
2004 7 1/8% Senior Subordinated Notes	—			21,156
2005 6 7/8% Senior Subordinated Notes, due February 2015	9,654			9,654
2012 11 % Senior Subordinated Notes, due September 2018, net of discount of $3,506 and $4,168, respectively	271,684			271,022
Line of Credit	3,041			—
2009 Mohegan Tribe Promissory Note, due September 2015	1,750			3,500
2012 Mohegan Tribe Minor's Trust Promissory Note, due March 2017	16,500			18,000
2013 Mohegan Tribe Promissory Note, due December 2018	7,420			7,420
Downs Lodging Credit Facility, due July 2016	45,000			45,000
Other	2,910			468
Long-term debt, excluding capital leases	1,730,936			1,682,312
Less: current portion of long-term debt	(31,558		)	(30,719		)
Long-term debt, net of current portion	$	1,699,378		$	1,651,593

F-17

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Maturities of long-term debt are as follows (in thousands, including current maturities):

Fiscal Years
2015	$	31,558
2016	70,324
2017	30,105
2018	1,102,620
2019	7,725
Thereafter	500,970
Total	$	1,743,302

In November 2013, the Authority completed a series of refinancing transactions relating to its Prior Bank Credit Facilities and 2009 and 2012 Second Lien Senior Secured Notes, including the repayment and termination of the Prior Bank Credit Facilities and the repurchase or redemption of the 2009 and 2012 Second Lien Senior Secured Notes with proceeds from new Senior Secured Credit Facilities (all further discussed below).

The Authority incurred approximately $60.8 million in costs in connection with these refinancing transactions, consisting primarily of consulting, legal and tender and consent fees. Previously deferred debt issuance costs and debt discounts totaling $22.4 million, as well as $39.6 million in new transaction costs, were expensed and recorded as a loss on early extinguishment of debt in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014. New debt issuance costs totaling $11.5 million were capitalized and included in other assets, net, in the accompanying consolidated balance sheet as of September 30, 2014 and will be amortized over the term of the related debt. The remaining $9.7 million in new costs was reflected as debt discount and included in long-term debt, net of current portion, in the accompanying consolidated balance sheet as of September 30, 2014 and will be amortized over the term of the related debt.

Prior Bank Credit Facilities

First Lien, First Out Credit Facility

In March 2012, the Authority entered into a Fourth Amended and Restated Bank Credit Facility providing for a $400.0 million term loan and a revolving loan with letter of credit and borrowing capacity of up to $75.0 million from a syndicate of financial institutions and commercial banks, with Bank of America, N.A. serving as Administrative Agent (the "Prior Bank Credit Facility"). In November 2013, the Authority repaid and terminated the Prior Bank Credit Facility with proceeds from new Senior Secured Credit Facilities (further discussed below). As of September 30, 2013, accrued interest, including commitment fees, on the Prior Bank Credit Facility was $61,000.

First Lien, Second Out Term Loan Facility

In March 2012, the Authority entered into a loan agreement providing for a $225.0 million first lien, second out term loan with Wells Fargo Gaming Capital, LLC serving as Administrative Agent (the "Prior Term Loan Facility" and, together with the Prior Bank Credit Facility, the "Prior Bank Credit Facilities"). In November 2013, the Authority repaid and terminated the Prior Term Loan Facility with proceeds from new Senior Secured Credit Facilities (further discussed below). As of September 30, 2013, accrued interest on the Prior Term Loan Facility was $1.1 million.

Senior Secured Credit Facilities

In November 2013, the Authority entered into a loan agreement among the Authority, the Tribe, the Guarantors as defined below, RBS Citizens, N.A. as Administrative and Collateral Agent and the other lenders and financial institutions party thereto, providing for $955.0 million in aggregate principal amount of senior secured credit facilities (the “Senior Secured Credit Facilities”), comprised of a $100.0 million senior secured revolving credit facility (the “Revolving Facility”), a $125.0 million senior secured term loan A facility (the “Term Loan A Facility”) and a $730.0 million senior secured term loan B facility (the “Term Loan B Facility"). The Senior Secured Credit Facilities mature on June 15, 2018, subject to extension based on the satisfaction of certain conditions to November 19, 2018 (in the case of the Revolving Facility and the Term Loan A Facility) and November 19, 2019 (in the case of the Term Loan B Facility).

The Term Loan A Facility amortizes in equal quarterly installments in an aggregate annual amount equal to 5.0% of the original principal amount for the first year after the closing date, 7.5% of the original principal amount for the second year after the closing date and 10.0% of the original principal amount in each year thereafter, with the balance payable on the maturity date

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of the Term Loan A Facility. The Term Loan B Facility amortizes in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount. Amortization of the Term Loan A Facility and Term Loan B Facility began the first full fiscal quarter after the closing date. The proceeds from the Term Loan A Facility and Term Loan B Facility, together with a drawing under the Revolving Facility, were used to satisfy in full all amounts due under the Authority's Prior Bank Credit Facilities, to repurchase or redeem all of the Authority's outstanding 2009 and 2012 Second Lien Senior Secured Notes and to otherwise satisfy and discharge the obligations in respect of such notes and to pay related fees and expenses. The Revolving Facility will otherwise be available for general corporate purposes.

As of September 30, 2014, amounts outstanding under the Revolving Facility, Term Loan A Facility and Term Loan B Facility totaled $37.0 million, $120.3 million and $724.5 million, respectively. As of September 30, 2014, letters of credit issued under the Revolving Facility totaled $2.9 million, of which no amount was drawn. Inclusive of letters of credit, which reduce borrowing availability under the Revolving Facility, and after taking into account restrictive financial covenant requirements, the Authority had approximately $57.1 million of borrowing capacity under its Revolving Facility and Line of Credit as of September 30, 2014.

Borrowings under the Senior Secured Credit Facilities incur interest as follows: (i) for base rate loans under the Revolving Facility and Term Loan A Facility, a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 basis points and (c) the one-month LIBOR rate plus 100 basis points (the highest of (a), (b) and (c), the “base rate”), plus a leverage-based margin of 250 to 350 basis points; (ii) for Eurodollar rate loans under the Revolving Facility and Term Loan A Facility, the applicable LIBOR rate plus a leverage-based margin of 350 to 450 basis points; (iii) for base rate loans under the Term Loan B Facility, the base rate (subject to a 2.0% floor) plus 350 basis points; and (iv) for Eurodollar rate loans under the Term Loan B Facility, the applicable LIBOR rate (subject to a 1.0% floor) plus 450 basis points. The Authority also is required to pay a leverage-based commitment fee of between 37.5 and 50 basis points for unused commitments under the Revolving Facility. Interest on base rate loans is payable quarterly in arrears. Interest on Eurodollar rate loans of three months or less is payable at the end of each applicable interest period and for Eurodollar rate loans of more than three months, interest is payable at intervals of three months duration after the beginning of such interest period.

As of September 30, 2014, the $37.0 million outstanding under the Revolving Facility was comprised of a $14.0 million base rate loan based on a base rate of 3.25% plus 350 basis points and a $23.0 million Eurodollar rate loan based on a Eurodollar rate of 0.15% plus 450 basis points. The commitment fee was 0.50% as of September 30, 2014. As of September 30, 2014, the $120.3 million outstanding under the Term Loan A Facility was based on a Eurodollar rate of 0.23% plus 450 basis points. As of September 30, 2014, the $724.5 million outstanding under the Term Loan B Facility was based on the Eurodollar rate floor of 1.0% plus 450 basis points. As of September 30, 2014, accrued interest, including commitment fees, on the Senior Secured Credit Facilities was $212,000.

The Authority's obligations under the Senior Secured Credit Facilities are fully and unconditionally guaranteed, jointly and severally, by the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming (collectively, the “Guarantors”). The Senior Secured Credit Facilities are collateralized by a first priority lien on substantially all of the Authority's property and assets and those of the Guarantors (other than MBC), including the assets that comprise Mohegan Sun at Pocono Downs and a leasehold mortgage on the land and improvements that comprise Mohegan Sun (the Authority and the Guarantors, other than MBC, are collectively referred to herein as the “Grantors”). The Grantors also are required to pledge additional assets as collateral for the Senior Secured Credit Facilities as they and future guarantor subsidiaries acquire them.

The Senior Secured Credit Facilities contain customary covenants applicable to the Authority and its restricted subsidiaries, including covenants governing: incurrence of indebtedness, incurrence of liens, payment of dividends and other distributions, investments, asset sales, affiliate transactions, mergers or consolidations and capital expenditures. Additionally, the Senior Secured Credit Facilities include financial maintenance covenants pertaining to total leverage, secured leverage and minimum fixed charge coverage.

As of September 30, 2014, the Authority and the Tribe were in compliance with all respective covenant requirements under the Senior Secured Credit Facilities.

The Authority continues to monitor revenues and manage expenses and enhance operating efficiencies to ensure continued compliance with its financial covenant requirements under the Senior Secured Credit Facilities. While the Authority anticipates that it will remain in compliance with all covenant requirements under its Senior Secured Credit Facilities for all periods prior to maturity, it may need to increase revenues or offset any future declines in revenues by implementing additional cost saving and other initiatives to ensure compliance with these financial covenant requirements. If the Authority is unable to satisfy its financial covenant requirements, it would need to obtain waivers or consents under the Senior Secured Credit Facilities; however, the Authority can provide no assurance that it would be able to obtain such waivers or consents. If the Authority is unable to obtain

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

such waivers or consents, it would be in default under its Senior Secured Credit Facilities, which may result in cross-defaults under its other outstanding indebtedness and allow its lenders and creditors to exercise their rights and remedies as defined under their respective agreements, including their right to accelerate the repayment of the Authority's outstanding indebtedness. If such acceleration were to occur, the Authority can provide no assurance that it would be able to obtain the financing necessary to repay such accelerated indebtedness.

Senior Secured Notes

2009 11  ¹/2% Second Lien Senior Secured Notes

In October 2009, the Authority issued $200.0 million Second Lien Senior Secured Notes with fixed interest payable at a rate of 11.5%per annum (the “2009 Second Lien Notes”). In March 2012, the Authority completed a private exchange offer and consent solicitation pursuant to which an aggregate principal amount of $199.8 million 2009 Second Lien Notes were tendered and exchanged, leaving an aggregate principal amount of $200,000 2009 Second Lien Notes outstanding. The 2009 Second Lien Notes were scheduled to mature on November 1, 2017. The first call date for the 2009 Second Lien Notes was November 1, 2013. In November 2013, the Authority called for redemption all $200,000 of its outstanding 2009 Second Lien Notes. The 2009 Second Lien Notes were redeemed on December 19, 2013. As of September 30, 2013, accrued interest on the 2009 Second Lien Notes was $10,000.

2012 11 ½% Second Lien Senior Secured Notes

In March 2012, the Authority issued $199.8 million Second Lien Senior Secured Notes with fixed interest payable at a rate of 11.5%per annum (the “2012 Second Lien Notes”) in exchange for an equal amount of 2009 Second Lien Notes. The 2012 Second Lien Notes were scheduled to mature on November 1, 2017. Subsequent to November 1, 2014, the Authority was entitled to redeem the 2012 Second Lien Notes, in whole or in part, at a premium decreasing ratably to zero, plus accrued interest. In November 2013, the Authority completed a tender offer and consent solicitation for its outstanding 2012 Second Lien Notes. As part of the tender offer, the Authority solicited and received requisite consents from tendering holders to certain amendments to the indentures governing the 2012 Second Lien Notes, which eliminated certain restrictive covenants under the notes and related indenture. Pursuant to this transaction, the Authority repurchased or redeemed all of its outstanding 2012 Second Lien Notes in the aggregate principal amount of $199.8 million. As of September 30, 2013, accrued interest on the 2012 Second Lien Notes was $9.6 million.

Senior Unsecured Notes

2013 9 ³/4% Senior Unsecured Notes

In August 2013, the Authority issued $500.0 million Senior Unsecured Notes with fixed interest payable at a rate of 9.75%per annum (the “2013 Senior Unsecured Notes”). The net proceeds from this transaction, together with borrowings under the Prior Bank Credit Facility, were used to repurchase or redeem all of the Authority's then outstanding 2012 10.5% Third Lien Senior Secured Notes, to repurchase $69.0 millionof the Authority's outstanding 2012 11.0% Senior Subordinated Notes and to pay related fees and expenses. The 2013 Senior Unsecured Notes mature on September 1, 2021. The Authority may redeem the 2013 Senior Unsecured Notes, in whole or in part, at any time prior to September 1, 2016 at a price equal to 100% of the principal amount plus a make-whole premium and accrued interest to the date of redemption. On or after September 1, 2016, the Authority may redeem the 2013 Senior Unsecured Notes, in whole or in part, at specified redemption prices, together with accrued interest to the date of redemption. If the Authority experiences specific kinds of change of control triggering events, the Authority must offer to repurchase the 2013 Senior Unsecured Notes at a price equal to 101% of the principal amount thereof, plus accrued interest to the purchase date. In addition, if the Authority undertakes certain types of asset sales and does not use the related sale proceeds for specified purposes, the Authority may be required to offer to repurchase the 2013 Senior Unsecured Notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2013 Senior Unsecured Notes is payable semi-annually on March 1^st and September 1^st, commencing March 1, 2014. On March 11, 2014, the Authority completed an offer to exchange the 2013 Senior Unsecured Notes for a new issue of substantially identical debt securities registered under the Securities Act of 1933, with all outstanding notes being exchanged. As of September 30, 2014 and 2013, accrued interest on the 2013 Senior Unsecured Notes was $4.1 million and $6.2 million, respectively.

The 2013 Senior Unsecured Notes are uncollateralized general obligations of the Authority and are effectively subordinated to all of the Authority’s and the Guarantors' and future guarantor subsidiaries' senior secured indebtedness, including the Senior Secured Credit Facilities, to the extent of the value of the collateral securing such indebtedness. The 2013 Senior Unsecured Notes also are effectively subordinated to any indebtedness and other liabilities (including trade payables) of the Authority’s subsidiaries that do not guarantee the 2013 Senior Unsecured Notes. The 2013 Senior Unsecured Notes rank equally in right of payment with the Authority’s other unsecured, unsubordinated indebtedness, including trade payables and the senior

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

portion of the Authority’s payment obligations under its Relinquishment Agreement. The 2013 Senior Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, by the Guarantors.

The 2013 Senior Unsecured Notes indenture contains certain covenants that, subject to certain significant exceptions, limit, among other things, the Authority’s and Guarantors’ ability to incur additional debt, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company or transfer and sell assets. The 2013 Senior Unsecured Notes indenture includes customary events of default, including, but not limited to, failure to make required payments, failure to comply with certain agreements or covenants, failure to pay certain other indebtedness, the occurrence of which is caused by a failure to pay principal, premium or interest or results in the acceleration of such indebtedness, certain events of bankruptcy and insolvency and certain judgment defaults.

Senior Subordinated Notes

2004 7 ¹/8% Senior Subordinated Notes

In August 2004, the Authority issued $225.0 million Senior Subordinated Notes with fixed interest payable at a rate of 7.125%per annum (the “2004 Senior Subordinated Notes”). In March 2012, the Authority completed a private exchange offer and consent solicitation for any or all of its outstanding 2004 Senior Subordinated Notes. As part of the exchange offer, the Authority solicited and received consents from tendering holders to certain amendments to the indentures governing the 2004 Senior Subordinated Notes, which eliminated certain restrictive covenants under the notes and related indenture. The aggregate principal amount of 2004 Senior Subordinated Notes tendered and exchanged was $203.8 million. Subsequent to the Authority's March 2012 private exchange offer, $21.2 million of the 2004 Senior Subordinated Notes remained outstanding, which amount, including accrued interest, was repaid at maturity on August 15, 2014 with cash on hand and drawings under the Revolving Facility. As of September 30, 2013, accrued interest on the 2004 Senior Subordinated Notes was $188,000.

2005 6 ⁷/8% Senior Subordinated Notes

In February 2005, the Authority issued $150.0 million Senior Subordinated Notes with fixed interest payable at a rate of 6.875%per annum (the “2005 Senior Subordinated Notes”). The 2005 Senior Subordinated Notes mature on February 15, 2015. The 2005 Senior Subordinated Notes are callable at the Authority's option at par. Interest on the 2005 Senior Subordinated Notes is payable semi-annually on February 15^th and August 15^th.

In March 2012, the Authority completed a private exchange offer and consent solicitation for any or all of its outstanding 2005 Senior Subordinated Notes. As part of the exchange offer, the Authority solicited and received consents from tendering holders to certain amendments to the indentures governing the 2005 Senior Subordinated Notes, which eliminated certain covenants under the notes and related indenture. The aggregate principal amount of 2005 Senior Subordinated Notes tendered and exchanged was $140.3 million. An aggregate principal amount of $9.7 million 2005 Senior Subordinated Notes remains outstanding as of September 30, 2014. The Authority plans to repay the outstanding 2005 Senior Subordinated Notes, including accrued interest, at maturity with cash on hand and drawings under the Revolving Facility. As of September 30, 2014 and 2013, accrued interest on the 2005 Senior Subordinated Notes was $83,000.

2012 11% Senior Subordinated Notes

In March 2012, the Authority issued $344.2 million Senior Subordinated Toggle Notes with fixed interest payable at a rate of 11%per annum (the “2012 Senior Subordinated Notes”) in exchange for $203.8 million of 2004 Senior Subordinated Notes and $140.3 million of 2005 Senior Subordinated Notes. The 2012 Senior Subordinated Notes mature on September 15, 2018. The Authority may redeem the 2012 Senior Subordinated Notes, in whole or in part, at any time, at a price equal to 100% of the principal amount plus accrued interest. If a change of control of the Authority occurs, the Authority must offer to repurchase the 2012 Senior Subordinated Notes at a price equal to 101% of the principal amount, plus accrued interest. In addition, if the Authority undertakes certain types of asset sales or suffers events of loss, and the Authority does not use the related sale or insurance proceeds for specified purposes, the Authority may be required to offer to repurchase the 2012 Senior Subordinated Notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2012 Senior Subordinated Notes is payable semi-annually on March 15^th and September 15^th. The initial interest payment on the 2012 Senior Subordinated Notes was payable entirely in cash. For any subsequent interest payment period through March 15, 2018, the Authority may, at its option, elect to pay interest on the 2012 Senior Subordinated Notes either entirely in cash or by paying up to 2% in 2012 Senior Subordinated Notes (“PIK Interest”). If the Authority elects to pay PIK Interest, such election will increase the principal amount of the 2012 Senior Subordinated Notes in an amount equal to the amount of PIK Interest for the applicable interest payment period to holders of 2012 Senior Subordinated Notes on the relevant record date.

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

In August 2013, the Authority repurchased an aggregate principal amount of $69.0 million 2012 Senior Subordinated Notes. An aggregate principal amount of $275.2 million 2012 Senior Subordinated Notes remains outstanding as of September 30, 2014. As of September 30, 2014 and 2013, accrued interest on the 2012 Senior Subordinated Notes was $1.3 million.

The 2012 Senior Subordinated Notes and guarantees have not been and will not be registered under the Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

The Authority's senior subordinated notes are uncollateralized general obligations of the Authority and are subordinated to borrowings under the Senior Secured Credit Facilities and 2013 Senior Unsecured Notes. The senior subordinated notes are fully and unconditionally guaranteed, jointly and severally, by the Guarantors.

The senior and senior subordinated note indentures contain certain non-financial and financial covenant requirements with which the Authority and the Tribe must comply. The non-financial covenant requirements include, among other things, reporting obligations, compliance with laws and regulations, maintenance of licenses and insurances and continued existence of the Authority. The financial covenant requirements include, among other things, subject to certain exceptions, limitations on the Authority's and the Guarantors' ability to incur additional indebtedness, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company, transfer or sell assets or impair assets constituting collateral.

As of September 30, 2014, the Authority and the Tribe were in compliance with all respective covenant requirements under the senior and senior subordinated note indentures.

The Authority or its affiliates may, from time to time, seek to purchase or otherwise retire outstanding indebtedness for cash in open market purchases, privately negotiated transactions or otherwise. Any such transaction will depend on prevailing market conditions and the Authority's liquidity and covenant requirement restrictions, among other factors.

Line of Credit

In November 2013, in connection with the new Senior Secured Credit Facilities, the Authority entered into a new $16.5 million revolving credit facility with Bank of America, N.A. (the “Line of Credit”). The Line of Credit is coterminous with the Senior Secured Credit Facilities. Pursuant to provisions of the Senior Secured Credit Facilities, under certain circumstances, the Line of Credit may be converted into loans under the Senior Secured Credit Facilities. Under the Line of Credit, each advance accrues interest on the basis of a one-month LIBOR Rate plus an applicable margin based on the Authority's total leverage ratio, as each term is defined under the Line of Credit. As of September 30, 2014, amounts outstanding under the Line of Credit totaled $3.0 million. Borrowings under the Line of Credit are uncollateralized obligations. The Line of Credit contains negative covenants and financial maintenance covenants that are substantially the same as those contained in the Senior Secured Credit Facilities. As of September 30, 2014, the Authority was in compliance with all covenant requirements under the Line of Credit. As of September 30, 2014, accrued interest on the Line of Credit was $23,000. As of September 30, 2013, there was no accrued interest on the Line of Credit.

2009 Mohegan Tribe Promissory Note

In September 2009, the Tribe made a $10.0 million loan to Salishan-Mohegan (the “2009 Mohegan Tribe Promissory Note”). The 2009 Mohegan Tribe Promissory Note was amended in June 2014 to extend the maturity date to September 30, 2015. The 2009 Mohegan Tribe Promissory Note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) $1.2 million per quarter, commencing December 31, 2013 through March 31, 2014 and (ii) $1.3 million on June 30, 2015, with the balance of accrued and unpaid interest due at maturity. As amended, principal outstanding under the 2009 Mohegan Tribe Promissory Note amortizes as follows: (i) $1.625 million per quarter, commencing December 31, 2012 through September 30, 2013, (ii) $875,000 per quarter, commencing December 31, 2013 through March 31, 2014, (iii) $875,000 on June 30, 2015 and (iv) $875,000 at maturity. As of September 30, 2014 and 2013, accrued interest on the Mohegan Tribe Promissory Note was $2.5 million and $4.7 million, respectively.

2012 Mohegan Tribe Minor's Trust Promissory Note

In March 2012, Comerica Bank & Trust, N.A., Trustee f/b/o The Mohegan Tribe of Indians of Connecticut Minor's Trust, made a $20.0 million loan to Salishan-Mohegan (the “2012 Mohegan Tribe Minor's Trust Promissory Note”). The 2012 Mohegan Tribe Minor's Trust Promissory Note was amended in June 2014 to extend the maturity date to March 31, 2017. The 2012 Mohegan Tribe Minor's Trust Promissory Note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

follows: (i) quarterly, commencing June 30, 2012 through March 31, 2014, (ii) on July 1, 2014 on the unpaid balance for the period April 1, 2014 through June 30, 2014, (iii) $800,000 per quarter, commencing September 30, 2015 through March 31, 2016 and (iv) quarterly, thereafter on the unpaid balance. As amended, principal outstanding under the 2012 Mohegan Tribe Minor's Trust Promissory Note amortizes as follows: (i) $500,000 per quarter, commencing December 31, 2012 through March 31, 2014, (ii) $500,000 on July 1, 2014 and September 30, 2015, (iii) $1.5 million per quarter, commencing December 31, 2015 through September 30, 2016 and (iv) $10.0 million at maturity. As of September 30, 2014 and 2013, accrued interest on the 2012 Mohegan Tribe Minor's Trust Promissory Note was $416,000 and $5,000, respectively.

2013 Mohegan Tribe Promissory Note

In March 2013, MG&H purchased and acquired all of the Tribe's membership interest in MG&H in exchange for a promissory note in the principal amount of $7.4 million (the “2013 Mohegan Tribe Promissory Note”). The 2013 Mohegan Tribe Promissory Note matures on December 31, 2018. The 2013 Mohegan Tribe Promissory Note accrues interest at an annual rate of 4.0% payable quarterly. As of September 30, 2014 and 2013, accrued interest on the 2013 Mohegan Tribe Promissory Note was $1,000.

Downs Lodging Credit Facility

In July 2012, Downs Lodging, a single purpose entity and wholly-owned unrestricted subsidiary of the Authority, entered into a credit agreement providing for a $45.0 million term loan from a third-party lender (the “Downs Lodging Credit Facility”). The proceeds from the Downs Lodging Credit Facility were used by Downs Lodging to fund Project Sunlight, a hotel and convention center expansion project at Mohegan Sun at Pocono Downs. The Downs Lodging Credit Facility matures on July 12, 2016 and accrues interest at an annual rate of 13.0%. Under the terms of the Downs Lodging Credit Facility, accrued interest of 10.0% is payable monthly in cash during the term of the loan, with the remaining 3.0% due at maturity. In addition, a 3.0% exit fee is payable upon repayment of the loan principal. The Downs Lodging Credit Facility is a senior secured obligation of Downs Lodging, collateralized by all existing and future assets of Downs Lodging. The Downs Lodging Credit Facility subjects Downs Lodging to certain covenant requirements customarily found in loan agreements for similar transactions. As of September 30, 2014, Downs Lodging was in compliance with all covenant requirements under the Downs Lodging Credit Facility. As of September 30, 2014 and 2013, there was no accrued interest on the Downs Lodging Credit Facility.

NOTE 7—LEASES:

The Authority leases certain areas at Mohegan Sun and Mohegan Sun at Pocono Downs to third-party food and beverage and retail outlets, as well as the rights to access and utilize Mohegan Sun’s rooftop for the installation and operation of antenna towers. Minimum future rental income that the Authority expects to earn under non-cancelable leases is as follows (in thousands):

	Fiscal Years Ending September 30,
	2015		2016		2017		2018		2019		Thereafter		Total
Minimum future rental income	$	6,608	$	6,187	$	3,943	$	3,370	$	3,026	$	10,002	$	33,136

The Authority is required to make payments under various operating leases for buildings, equipment and land at Mohegan Sun and Mohegan Sun at Pocono Downs. The Authority incurred rental expense totaling $11.4 million, $11.0 million and $12.6 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Minimum future rental expense that the Authority expects to incur under non-cancelable leases is as follows (in thousands):

	Fiscal Years Ending September 30,
	2015		2016		2017		2018		2019		Thereafter		Total
Minimum future rental expense	$	1,849	$	1,135	$	1,007	$	869	$	868	$	932	$	6,660

NOTE 8—RELATED PARTY TRANSACTIONS:

Distributions to the Tribe totaled $50.0 million, $50.0 million and $53.0 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

The Tribe provides certain governmental and administrative services in connection with the operation of Mohegan Sun. The Authority incurred expenses for such services totaling $27.1 million, $26.8 million and $27.0 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Authority purchases most of its utilities, including electricity, gas, water and waste water services, from an instrumentality of the Tribe, the Mohegan Tribal Utility Authority. The Authority incurred costs for such utilities totaling $19.3 million, $17.8 million and $18.7 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

The Authority incurred interest expense associated with borrowings from the Mohegan Tribe totaling $2.3 million, $3.0 million and $2.5 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

As of September 30, 2013, outstanding payables to the Tribe totaled $808,000 and were included in "Current liabilities - Due to Mohegan Tribe" in the accompanying consolidated balance sheet as of September 30, 2013.

The Authority leases the land on which Mohegan Sun is located from the Tribe under a long-term lease agreement. The agreement requires the Authority to make a nominal annual rental payment. This lease has an initial term of 25 years and is renewable for an additional 25-year term upon expiration. In addition, in July 2008, the Authority entered into a land lease agreement with the Tribe, replacing a prior land lease agreement, relating to property located adjacent to the Tribe's reservation that is utilized by Mohegan Sun for employee parking. This agreement requires the Authority to make monthly payments equaling $75,000 until maturity on June 30, 2018. The Authority classified this lease as a capital lease for financial reporting purposes due to the existence of a bargain purchase option at the expiration of the lease.

In September 1995, the Tribe adopted the Mohegan Tribal Employment Rights Ordinance, as amended from time to time (the “TERO”), which sets forth hiring and contracting preference requirements for employers and entities conducting business on Tribal lands on or adjacent to the Mohegan Reservation. Pursuant to the TERO, the Authority and other covered employers are required to give hiring, promotion, training, retention and other employment-related preferences to Native Americans who meet the minimum qualifications for the applicable employment position. However, this preference requirement does not apply to key employees as such persons are defined under the TERO.

Similarly, any entity awarding a contract or subcontract valued up to $200,000 to be performed on Tribal lands must give preference, first, to certified Mohegan entities submitting commercially responsible bids, and second, to other certified Native American entities. This contracting preference is conditioned upon the bid by the preferred certified entity being within 5% of the lowest bid by a non-certified entity. Contracts in excess of $200,000 are awarded to the lowest commercially responsible bidder, on a competitive basis, with preference to certified Mohegan entities and then other certified Native American entities in the event of a matching bid. The TERO establishes procedures and requirements for certifying Mohegan entities and other Native American entities. Certification is based largely on the level of ownership and control exercised by the members of the Tribe or other Native American tribes, as the case may be, over the entity bidding on a contract.

As of September 30, 2014, the Authority employed approximately 125 membersof the Tribe.

NOTE 9—EMPLOYEE BENEFIT PLANS:

The Authority maintains a retirement savings plan for its employees under Section 401(k) and Section 401(a) of the Internal Revenue Code (the “Mohegan Retirement and 401(k) Plan”). Under the 401(k) portion of the plan, participants may contribute between 1% and 25% of eligible compensation up to the maximum allowed by the Internal Revenue Code. The Authority matches 50% of participants’ elective deferral contributions up to a maximum of 3% of participants’ compensation. Under the retirement portion of the plan, the Authority may make discretionary retirement contributions based on a rate of $0.30 per qualified hour worked. In general, employees become eligible for the Mohegan Retirement and 401(k) Plan after 90 days of service and become fully vested after six years of service. In February 2009, the Authority suspended both its discretionary matching 401(k) contributions and retirement contributions. In July 2012, the Authority resumed its discretionary matching 401(k) contributions. Discretionary retirement contributions remain suspended. The Authority contributed $2.5 million, $2.4 million and $612,000, net of forfeitures, to the Mohegan Retirement and 401(k) Plan for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

The Authority, together with the Tribe, maintains a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for certain key employees. Under the Deferred Compensation Plan, participants may defer up to 100% of their compensation. Participants’ withdrawals, net of contributions and changes in fair value of investments, totaled $22,000 and $7.4 million for the fiscal years ended September 30, 2014 and 2013, respectively. Participants’ contributions, net of withdrawals and changes in fair value of investments, totaled $493,000 for the fiscal year ended September 30, 2012.

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 10—COMMITMENTS AND CONTINGENCIES:

Slot Win and Free Promotional Slot Play Contributions

In May 1994, the Tribe and the State of Connecticut entered into a Memorandum of Understanding (“MOU”), which sets forth certain matters regarding implementation of the Mohegan Compact. The MOU stipulates that a portion of revenues from slot machines must be paid to the State of Connecticut (“Slot Win Contribution”). Slot Win Contribution payments are not required if the State of Connecticut legalizes any other gaming operation with slot machines, video facsimiles of games of chance or other commercial casino games within the State of Connecticut, except those consented to by the Tribe and the Mashantucket Pequot Tribe (the “MPT”). For each 12-month period commencing July 1, 1995, Slot Win Contribution payments shall be the lesser of: (1) 30% of gross revenues from slot machines or (2) the greater of (a) 25% of gross revenues from slot machines or (b) $80.0 million.

In September 2009, the Authority entered into a settlement agreement with the State of Connecticut regarding contribution payments on the Authority's free promotional slot play program. Under the terms of the settlement agreement, effective July 1, 2009, the State of Connecticut agreed that no value shall be attributed to free promotional slot plays utilized by patrons at Mohegan Sun for purposes of calculating monthly contribution payments, provided that the aggregate amount of free promotional slot plays during any month does not exceed a certain threshold of gross revenues from slot machines for such month. In the event free promotional slot plays granted by the Authority exceed such threshold, contribution payments are required on such excess face amount of free promotional slot plays at the same rate as Slot Win Contribution payments, or 25%. The threshold before contribution payments on free promotional slot plays are required is currently 11% of gross revenues from slot machines.

The Authority reflected expenses associated with the combined Slot Win Contribution and free promotional slot play contribution totaling $146.5 million, $155.8 million and $173.1 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, the combined outstanding Slot Win Contribution and free promotional slot play contribution totaled $11.6 million and $12.7 million, respectively.

Pennsylvania Slot Machine Tax

Downs Racing holds a Category One slot machine license issued by the PGCB for the operation of slot machines at Mohegan Sun at Pocono Downs. This license permits Downs Racing to install and operate up to 3,000 slot machines at Mohegan Sun at Pocono Downs, expandable to up to a total of 5,000 slot machines upon request and approval of the PGCB.

The Pennsylvania Race Horse Development and Gaming Act stipulates that holders of Category One slot machine licenses must pay a portion of revenues from slot machines to the PGCB on a daily basis (“Pennsylvania Slot Machine Tax”), which includes local share assessments to be paid to the cities and municipalities hosting Mohegan Sun at Pocono Downs and amounts to be paid to the Pennsylvania Harness Horsemen's Association, Inc. (the “PHHA”). The Pennsylvania Slot Machine Tax is currently 55% of gross revenues from slot machines, 2% of which is subject to a $10.0 million minimum annual threshold to ensure that the host cities and municipalities receive an annual minimum of $10.0 million in local share assessments. Downs Racing maintains a $1.5 million escrow deposit in the name of the Commonwealth of Pennsylvania for Pennsylvania Slot Machine Tax payments, which was included in other assets, net, in the accompanying consolidated balance sheets.

The Authority reflected expenses associated with the Pennsylvania Slot Machine Tax totaling $122.3 million, $124.0 million and $134.2 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, outstanding Pennsylvania Slot Machine Tax payments totaled $4.6 million and $5.5 million, respectively.

Pennsylvania Table Game Tax

In January 2010, the Commonwealth of Pennsylvania amended the Pennsylvania Race Horse Development and Gaming Act to allow slot machine operators in the Commonwealth of Pennsylvania to obtain a table game operation certificate and operate certain table games, including poker. Under the amended law, holders of table game operation certificates must pay a portion of revenues from table games to the PGCB on a weekly basis (“Pennsylvania Table Game Tax”). The Pennsylvania Table Game Tax is currently 12%, plus the 2% local share assessments.

The Authority reflected expenses associated with the Pennsylvania Table Game Tax totaling $6.3 million, $6.1 million and $6.8 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, outstanding Pennsylvania Table Game Tax payments totaled $156,000 and $127,000, respectively.

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Pennsylvania Regulatory Fee

Slot machine licensees in the Commonwealth of Pennsylvania are required to reimburse state gaming regulatory agencies for various administrative and operating expenses (“Pennsylvania Regulatory Fee”) at a rate of 1.5% of gross revenues from slot machines and table games.

The Authority reflected expenses associated with the Pennsylvania Regulatory Fee totaling $4.7 million, $4.2 million and $5.1 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, outstanding Pennsylvania Regulatory Fee payments to the PGCB totaled $147,000 and $132,000, respectively.

Pennsylvania Gaming Control Board Loans

The PGCB was initially granted $36.1 million in loans to fund start-up costs for gaming in the Commonwealth of Pennsylvania, which are to be repaid by slot machine licensees (the "Initial Loans"). The PGCB was subsequently granted an additional $63.8 million in loans to fund ongoing gaming oversight costs, which also are to be repaid by slot machine licensees (the "Subsequent Loans"). Repayment of the Initial Loans will commence when all 14 authorized gaming facilities are opened in the Commonwealth of Pennsylvania. Currently, 12 of the 14 authorized gaming facilities have commenced operations. As of September 30, 2014, the Authority has concluded that a repayment contingency for the Initial Loans is probable but not reasonably estimable since the PGCB has not yet established a method of assessment of repayment for the Initial Loans and, as such, the Authority has not recorded a related accrual for such repayment. In June 2011, the PGCB adopted a method of assessment of repayment for the Subsequent Loans pursuant to which repayment commenced on January 1, 2012 and will continue over a 10-year period in accordance with a formula based on a combination of a single fiscal year and cumulative gross revenues from slot machines for each operating slot machine licensee.

The Authority reflected expenses associated with this repayment schedule totaling $638,000, $633,000 and $659,000 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

Horsemen’s Agreement

Downs Racing and the PHHA are parties to an agreement that governs all live harness racing and simulcasting and account wagering at the Pennsylvania Facilities through December 31, 2014. As of September 30, 2014 and 2013, outstanding payments to the PHHA for purses earned by horsemen, but not yet paid, and other fees totaled $8.1 million and $7.8 million, respectively.

Priority Distribution Agreement

In August 2001, the Authority and the Tribe entered into an agreement (the “Priority Distribution Agreement”), which stipulates that the Authority must make monthly payments to the Tribe to the extent of the Authority's Net Cash Flow, as defined under the Priority Distribution Agreement. The Priority Distribution Agreement, which has a perpetual term, limits the maximum aggregate priority distribution payments in each calendar year to $14.0 million, as adjusted annually in accordance with a formula specified in the Priority Distribution Agreement to reflect the effects of inflation. Payments under the Priority Distribution Agreement: (1) do not reduce the Authority's obligations to reimburse the Tribe for governmental and administrative services provided by the Tribe or to make payments under any other agreements with the Tribe, (2) are limited obligations of the Authority and are payable only to the extent of the Authority's Net Cash Flow, as defined under the Priority Distribution Agreement and (3) are not secured by a lien or encumbrance on any of the Authority's assets or properties.

The Authority reflected payments associated with the Priority Distribution Agreement totaling $19.5 million, $19.2 million and $18.8 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

Town of Montville Agreement

In June 1994, the Tribe entered into an agreement with the Town of Montville (the “Town”) under which the Tribe agreed to pay the Town $500,000 annually to minimize the impact of Tribe’s reservation being held in trust on the Town. The Tribe has assigned its rights and obligations under this agreement to the Authority.

Land Lease Agreement

The land upon which Mohegan Sun is located is held in trust for the Tribe by the United States. The Authority entered into a land lease agreement with the Tribe to lease the property and improvements and related facilities constructed or installed on the property. In March 2007, the agreement was amended to update the legal description of the property, and, in April 2007,

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

the amended agreement was approved by the Secretary of the Interior. The following summarizes the key provisions of the land lease agreement:

Term

The term of the agreement is 25 years with an option, exercisable by the Authority, to extend the term for one additional 25-year period. Upon termination of the agreement, the Authority will be required to surrender to the Tribe possession of the property and improvements, excluding any equipment, furniture, fixtures or other personal property.

Rent and Other Operating Costs and Expenses

The agreement requires the Authority to pay the Tribe a nominal annual rental fee. For any period that the Tribe or another agency or instrumentality of the Tribe is not the tenant, the rent will be 8% of such tenant’s gross revenues from the property. The Authority is responsible for all costs and expenses of owning, operating, constructing, maintaining, repairing, replacing and insuring the property.

Use of Property

The Authority may utilize the property and improvements solely for the operation of Mohegan Sun, unless prior approval is obtained from the Tribe for any proposed alternative use. The Authority may not construct or alter any building or improvement located on the property unless complete and final plans and specifications are approved by the Tribe. Following foreclosure of any mortgage on the Authority’s interest under the agreement or any transfer of such interest to the holder of such mortgage in lieu of foreclosure, the property and improvements may be utilized for any lawful purpose, subject to applicable codes and governmental regulations; provided, however, that a non-Indian holder of the property may under no circumstance conduct gaming operations on the property.

Permitted Mortgages and Rights of Permitted Mortgagees

The Authority may not mortgage, pledge or otherwise encumber its leasehold estate in the property except to a holder of a permitted mortgage. Under the terms of the agreement, permitted mortgages include the leasehold mortgage securing the Authority’s senior secured indebtedness, provided that, among other things: (1) the Tribe will have the right to notice of, and to cure, any default of the Authority, (2) the Tribe will have the right to prior notice of an intention by the holder to foreclose on the permitted mortgage and the right to purchase the mortgage in lieu of any foreclosure and (3) the permitted mortgage is subject and subordinated to any and all access and utility easements granted by the Tribe under the agreement. Under the terms of the agreement, each holder of a permitted mortgage has the right to notice of any default of the Authority under the agreement and the opportunity to cure such default within the applicable cure period.

Default Remedies

The Authority will be in default under the agreement if, subject to the notice provisions, it fails to make lease payments or comply with covenants under the agreement or if it pledges, encumbers or conveys its interest in violation of the terms of the agreement. Following a default, the Tribe may, with approval from the Secretary of the Interior, terminate the agreement unless a permitted mortgage remains outstanding with respect to the property. In such case, the Tribe may not: (1) terminate the agreement or the Authority’s right to possession of the property, (2) exercise any right of re-entry, (3) take possession of and/or relet the property or any portion thereof or (4) enforce any other right or remedy, which may materially and adversely affect the rights of the holder of the permitted mortgage, unless the default triggering such rights was a monetary default of which such holder failed to cure after notice.

Litigation

The Authority is a defendant in various litigation matters resulting from its normal course of business. In management's opinion, the aggregate liability, if any, arising from such litigations will not have a material impact on the Authority's financial position, results of operations or cash flows.

NOTE 11—RELINQUISHMENT AGREEMENT:

In February 1998, the Authority and TCA entered into a relinquishment agreement (the “Relinquishment Agreement”). Effective January 1, 2000 (the “Relinquishment Date”), the Relinquishment Agreement superseded a then-existing management agreement with TCA. The Relinquishment Agreement provides, among other things, that the Authority make certain payments to TCA out of, and determined as a percentage of, Revenues, as defined under the Relinquishment Agreement, generated by Mohegan Sun over a 15-year period commencing on the Relinquishment Date. The payments (“Senior Relinquishment Payments” and “Junior Relinquishment Payments”) have separate schedules and priorities. Senior Relinquishment Payments commenced on April 25, 2000, 25 days following the end of the first three-month period after the Relinquishment Date, and continue at the end

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

of each three-month period thereafter until January 25, 2015. Junior Relinquishment Payments commenced on July 25, 2000, 25 days following the end of the first six-month period after the Relinquishment Date, and continue at the end of each six-month period thereafter until January 25, 2015. Each Senior and Junior Relinquishment Payment is 2.5% of Revenues generated by Mohegan Sun over the immediate preceding three-month or six-month payment period, as the case may be. Revenues are defined under the Relinquishment Agreement as gross gaming revenues, other than Class II Gaming revenues, and all other revenues, as defined, including, without limitation, hotel revenues, room service revenues, food and beverage revenues, ticket revenues, fees or receipts from the convention/events center and all rental revenues or other receipts from lessees and concessionaires, but not the gross receipts of such lessees, licenses and concessionaires, derived directly or indirectly from the facilities, as defined. Revenues under the Relinquishment Agreement exclude revenues generated from certain expansion areas of Mohegan Sun, such as Casino of the Wind, as such areas do not constitute facilities as defined under the Relinquishment Agreement.

In the event of any bankruptcy, liquidation, reorganization or similar proceeding relating to the Authority, the Relinquishment Agreement provides that Senior and Junior Relinquishment Payments then due and owing are subordinated in right of payment to the Authority's senior secured indebtedness and capital lease obligations, and that Junior Relinquishment Payments then due and owing are further subordinated in right of payment to all of the Authority's other senior indebtedness. The Relinquishment Agreement also provides that all relinquishment payments are subordinated in right of payment to minimum priority distribution payments, which are required monthly payments made by the Authority to the Tribe under the Priority Distribution Agreement, to the extent then due. The Authority, in accordance with authoritative guidance issued by the FASB pertaining to the accounting for contingencies, recorded a $549.1 million relinquishment liability at September 30, 1998 based on the estimated present value of its obligations under the Relinquishment Agreement.

As of September 30, 2014 and 2013, the carrying amount of the relinquishment liability was $25.2 million and $74.4 million, respectively. The decrease in the relinquishment liability during the fiscal year ended September 30, 2014 was due to $49.5 million in relinquishment payments and a $1.9 million relinquishment liability reassessment credit. This reduction in the liability was offset by $2.2 million representing the accretion of discount to the relinquishment liability.

Relinquishment payments consisted of the following (in millions):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Principal	$	46.6	$	45.4	$	45.3
Accretion of discount	2.9		5.8		9.0
Total	$	49.5	$	51.2	$	54.3

The accretion of discount to the relinquishment liability reflects the accretion of the discount to the present value of the relinquishment liability for the impact of the time value of money. As of September 30, 2014 and 2013, relinquishment payments earned but unpaid were $13.2 million and $13.3 million, respectively.

The relinquishment liability reassessment credits of $1.9 million, $249,000 and $11.4 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively, resulted from reductions in Mohegan Sun revenues and revenue projections as of the end of each respective fiscal year compared to projections as of the end of the related prior fiscal year.

NOTE 12—MOHEGAN VENTURES-NORTHWEST, LLC (COWLITZ PROJECT):

In July 2004, the Authority formed Mohegan Ventures-NW as its wholly-owned subsidiary. Mohegan Ventures-NW is one of three current members in Salishan-Mohegan, which was formed to participate in the Cowlitz Project, a proposed casino to be owned by the Cowlitz Tribe and to be located in Clark County, Washington. Mohegan Ventures-NW, Salishan Company, LLC, an unrelated entity, and a subsidiary of the Tribe hold membership interests in Salishan-Mohegan of 49.15%, 40% and 10.85%, respectively. Salishan-Mohegan holds a 100% membership interest in Salishan-Mohegan Two and Interchange Development Group, both of which were formed to acquire certain property related to the Cowlitz Project. Salishan-Mohegan is not a restricted entity of the Authority, and therefore, is not a guarantor of the Authority’s debt obligations.

In September 2004, Salishan-Mohegan entered into development and management agreements with the Cowlitz Tribe in connection with the Cowlitz Project, which agreements have been amended from time to time. Under the terms of the development agreement, Salishan-Mohegan will assist in securing financing, as well as administer and oversee the planning, designing, development, construction and furnishing of the proposed casino. The development agreement provides for development fees of 3% of total project costs, as defined under the development agreement. Under the terms of Salishan-Mohegan's operating agreement, development fees will be distributed to Mohegan Ventures-NW. In 2006, Salishan-Mohegan purchased a 152-acre site for the proposed casino, which will be transferred to the Cowlitz Tribe or the United States pursuant to the development agreement.

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Development of the Cowlitz Project is subject to certain governmental and regulatory approvals and agreements, including, but not limited to, a gaming compact with the State of Washington and acceptance of land into trust on behalf of the Cowlitz Tribe by the United States Department of the Interior. The development agreement provides for termination of Salishan-Mohegan’s exclusive development rights if the land is not taken into trust by December 31, 2020. Under the terms of the management agreement, Salishan-Mohegan will manage, operate and maintain the proposed casino for a period of seven years following its opening. The management agreement provides for management fees of 24% of net revenues, as defined under the management agreement, which approximates net income earned from the Cowlitz Project. Under the terms of Salishan-Mohegan's operating agreement, management fees will be allocated to the members of Salishan-Mohegan based on their respective membership interest. The management agreement is subject to approval by the National Indian Gaming Commission (the “NIGC”). On August 7, 2014, the Cowlitz Tribe’s Class III Tribal-State gaming compact with the State of Washington became effective with notice of federal approval published in the Federal Register. According to the notice, the compact allows for two gaming facilities, allocates 975 gaming machines for leasing, authorizes the operation of up to 3,000 gaming machines and 125 table games, and is in effect until terminated by written agreement of both parties.

Under the terms of the development agreement, certain receivables contributed to Salishan-Mohegan and amounts advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe are reimbursable to Salishan-Mohegan by the Cowlitz Tribe, subject to appropriate approvals defined under the development agreement. Reimbursements are contingent and are to be distributed upon: (1) the receipt of necessary financing for the development of the proposed casino and (2) the related property being taken into trust by the United States Department of the Interior. The Authority currently accrues interest on the Salishan-Mohegan receivables at an annual rate of 10.0%.

In March 2013, two lawsuits challenging a December 2010 decision of the Assistant Secretary - Indian Affairs of the Department of the Interior to take the 152-acre Cowlitz Project site into trust were dismissed on procedural grounds. In April 2013, pursuant to judicial directive, the Department of the Interior issued a new Record of Decision to take the Cowlitz Project site into trust, determining for a second time that the site will serve as the initial reservation of the Cowlitz Tribe and that the tribe may conduct gaming on such lands under the Indian Gaming Regulatory Act. In June 2013, the plaintiffs in the earlier litigation filed two new lawsuits challenging the new Record of Decision, and, in July 2013, those lawsuits were consolidated. By Notice of Trust Acquisition filed with the court on October 22, 2014, while motions for summary judgment filed by the plaintiffs and the defendants were pending, the federal defendants provided the court notice of the United States Department of the Interior's planned trust acquisition of the Cowlitz Project site, which was the subject of the litigation, on the earlier of: (1) January 21, 2015 and (2) 30 days after a court order granting summary judgment in favor of the federal defendants. On December 12, 2014, a U.S. District Court for the District of Columbia judge entered an order granting summary judgment in favor of the federal defendants, thereby upholding the Record of Decision and denying the federal plaintiffs’ motion. On December 18, 2014, one of the federal plaintiffs, the Confederated Tribes of the Grand Ronde Community of Oregon, filed notice of an appeal of that order to the Court of Appeals for the District of Columbia Circuit. The Authority can provide no assurance as to the outcome of this appeal or any future litigation or that the remaining steps and conditions for the Cowlitz Project site to be taken into trust for gaming will be satisfied or that necessary financing for the development of the proposed casino will be obtained.

In light of the aforementioned and the uncertainty in the development of the Cowlitz Project, the Authority maintains a reserve for doubtful collection of the Salishan-Mohegan receivables, which is based on the Authority’s estimate of the probability that the receivables will be collected. As of September 30, 2014 and 2013, the Salishan-Mohegan receivables, including accrued interest, totaled $56.8 million and $48.0 million, respectively. As of September 30, 2014 and 2013, related reserves for doubtful collection totaled $17.0 million and $14.4 million, respectively. The Salishan-Mohegan receivables were included in other assets, net, in the accompanying consolidated balance sheets.

NOTE 13—MOHEGAN VENTURES WISCONSIN, LLC (MENOMINEE PROJECT):

In March 2007, the Authority formed MVW as its wholly-owned subsidiary and one of two original members in WTG, which was formed to participate in the Menominee Project, a proposed casino to be owned by the Menominee Tribe and to be located in Kenosha, Wisconsin. MVW now holds 100% membership interest in WTG. MVW and WTG are full and unconditional guarantors of the Authority’s outstanding indebtedness.

In connection with the Menominee Project, the Authority entered into a management agreement with the Menominee Tribe and the Menominee Kenosha Gaming Authority (the “MKGA”), and WTG purchased the development rights for the Menominee Project under a development agreement with the Menominee Tribe and the MKGA. In September 2010, WTG entered into a release and reimbursement agreement pursuant to which WTG: (1) relinquished its development rights and was relieved of its development obligations for the Menominee Project, (2) retained its rights to reimbursement of certain receivables related to reimbursable costs and expenses advanced by WTG on behalf of the Menominee Tribe for the Menominee Project, subject to

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

certain conditions and (3) assigned the option to purchase the proposed Menominee Project site in Kenosha to MKGA. The Authority retained its interest in the management agreement. Due to the uncertainty in the development of the Menominee Project, as of September 30, 2008, the Authority fully reserved for these receivables and wrote-off the related development rights intangible asset. In February 2012, the MKGA terminated its efforts to seek NIGC approval of the management agreement. As of September 30, 2014, the WTG receivables remain fully reserved.

NOTE 14—INVESTMENT IN WNBA FRANCHISE:

In January 2003, the Authority formed MBC as its wholly-owned subsidiary to own and operate a professional basketball team in the WNBA. In January 2003, the Authority and MBC entered into a Membership Agreement with WNBA, LLC which sets forth the terms and conditions under which MBC acquired its membership in the WNBA and the right to own and operate a team. The Authority guaranteed the obligations of MBC under the Membership Agreement. MBC is a full and unconditional guarantor of the Authority’s outstanding indebtedness.

In connection with MBC’s acquisition of its membership in the WNBA and the right to own and operate a team, the Authority estimated the fair value of the initial player roster to be $4.8 million and the remaining $5.5 million of MBC’s aggregate investment was recognized as a franchise value.

The player roster value was amortized over seven years and became fully amortized in fiscal 2010. The franchise value is being amortized over thirty years and is assessed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. As of September 30, 2014 and 2013, accumulated amortization on the franchise value was $2.1 million and $2.0 million, respectively. Amortization expense associated with the franchise value totaled $183,000 for each of the fiscal years ended September 30, 2014, 2013 and 2012. The Authority expects to incur amortization expenses related to the franchise value of $183,000 for each of the next five fiscal years. The franchise value was included in intangible assets, net, in the accompanying consolidated balance sheets.

MBC currently owns approximately 4.2% of the membership interest in WNBA, LLC which is accounted for under the Cost Method. Under the terms of the Limited Liability Company Agreement of WNBA, LLC, if at any time, WNBA, LLC’s Board of Governors determines that additional funds are needed for WNBA, LLC’s or any league entity’s general business, the Board of Governors may require additional cash capital contributions. In such event, each member shall be obligated to contribute to WNBA, LLC an amount of cash equal to that member’s proportionate share of ownership. No such cash capital contribution has been required by WNBA, LLC through September 30, 2014.

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 15—SEGMENT REPORTING:

As of September 30, 2014, the Authority owns and operates, either directly or through wholly-owned subsidiaries, Mohegan Sun, the Connecticut Sun franchise, and the Mohegan Sun Golf Club (collectively, the “Connecticut Facilities”), and the Pennsylvania Facilities. Substantially all of the Authority's revenues are derived from these operations. The Connecticut Sun franchise and the Mohegan Sun Golf Club are aggregated with the Mohegan Sun operating segment because these operations all share similar economic characteristics, which is to generate gaming and entertainment revenues by attracting patrons to Mohegan Sun. The Authority's executive officers review and assess the performance and operating results and determine the proper allocation of resources to the Connecticut Facilities and the Pennsylvania Facilities on a separate basis. Accordingly, the Authority has two separate reportable segments: (1) Mohegan Sun, which includes the operations of the Connecticut Facilities and (2) Mohegan Sun at Pocono Downs, which includes the operations of the Pennsylvania Facilities. The Authority's operations related to investments in unconsolidated affiliates and certain other Corporate and management operations have not been identified as separate reportable segments, therefore, these operations are included in Corporate and other in the following segment disclosures to reconcile to consolidated results.

	For the Fiscal Years Ended
(in thousands)	September 30, 2014			September 30, 2013			September 30, 2012
Net revenues:
Mohegan Sun	$	995,100		$	1,042,078		$	1,084,017
Mohegan Sun at Pocono Downs	296,578			296,648			314,999
Corporate and other	5,391			1,302			297
Inter-segment revenues	(4,351		)	—			—
Total	$	1,292,718		$	1,340,028		$	1,399,313
Income (loss) from operations:
Mohegan Sun	$	181,325		$	212,680		$	199,358
Mohegan Sun at Pocono Downs	36,956			43,763			43,296
Corporate and other	(36,873		)	(26,937		)	(17,230		)
Total	181,408			229,506			225,424
Accretion of discount to the relinquishment liability	(2,205		)	(4,974		)	(8,248		)
Interest income	7,066			6,271			4,492
Interest expense, net of capitalized interest	(147,933		)	(170,150		)	(146,057		)
Loss on early extinguishment of debt	(62,041		)	(11,516		)	(14,326		)
Other expense, net	(853		)	(1,595		)	(44		)
Net income (loss)	(24,558		)	47,542			61,241
Loss attributable to non-controlling interests	380			2,784			2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	50,326		$	63,260

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Capital expenditures incurred:
Mohegan Sun	$	19,518	$	27,652	$	36,542
Mohegan Sun at Pocono Downs	3,946		4,673		3,543
Corporate and other	9,164		33,728		3,557
Total	$	32,628	$	66,053	$	43,642
	September 30, 2014		September 30, 2013
Total assets:
Mohegan Sun	$	1,368,352	$	1,425,152
Mohegan Sun at Pocono Downs	551,655		558,700
Corporate	135,953		152,298
Total	$	2,055,960	$	2,136,150

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 16—SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION:

As of September 30, 2014, substantially all of the Authority's outstanding debt is fully and unconditionally guaranteed, on a joint and several basis, by the following 100% owned subsidiaries of the Authority: the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming. Separate financial statements and other disclosures concerning the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming are not presented below because the Authority believes that the summarized financial information provided below and in Note 15 are adequate for investor analysis of these subsidiaries. Condensed consolidating financial statement information for the Authority, its 100% owned guarantor subsidiaries and its non-guarantor subsidiaries and entities as of September 30, 2014 and 2013 and for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows (in thousands):

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MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

CONDENSED CONSOLIDATING BALANCE SHEETS

	September 30, 2014
	Authority		Total Guarantor Subsidiaries (1)		Total Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	33,939	$	14,767	$	402		$	—		$	49,108
Restricted cash	47		628		—			—			675
Receivables, net	27,537		2,637		1,287			(821		)	30,640
Inventories	13,339		1,205		—			—			14,544
Other current assets	15,559		1,182		256			—			16,997
Total current assets	90,421		20,419		1,945			(821		)	111,964
Non-current assets:
Property and equipment, net	1,142,363		222,425		59,280			—			1,424,068
Goodwill	—		39,459		—			—			39,459
Other intangible assets, net	120,395		284,714		—			—			405,109
Other assets, net	28,625		3,970		49,077			(6,312		)	75,360
Intercompany receivables	228,122		65,981		—			(294,103		)	—
Investment in subsidiaries	325,651		—		—			(325,651		)	—
Total assets	$	1,935,577	$	636,968	$	110,302		$	(626,887	)	$	2,055,960
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	28,893	$	—	$	415		$	—		$	29,308
Current portion of relinquishment liability	25,194		—		—			—			25,194
Due to Mohegan Tribe	—		—		2,250			—			2,250
Current portion of capital leases	793		58		—			(58		)	793
Trade payables	18,893		5,181		12			—			24,086
Construction payables	4,411		794		627			—			5,832
Accrued interest payable	5,725		—		2,934			—			8,659
Other current liabilities	90,684		29,504		7,750			(763		)	127,175
Total current liabilities	174,593		35,537		13,988			(821		)	223,297
Non-current liabilities:
Long-term debt, net of current portion	1,630,958		—		45,000			—			1,675,958
Due to Mohegan Tribe, net of current portion	—		—		23,420			—			23,420
Capital leases, net of current portion	2,345		6,111		—			(6,111		)	2,345
Other long-term liabilities	2,307		—		3,806			—			6,113
Intercompany payables	—		225,269		68,834			(294,103		)	—
Accumulated losses in excess of investment in subsidiaries	—		31,680		—			(31,680		)	—
Total liabilities	1,810,203		298,597		155,048			(332,715		)	1,931,133
Capital:
Retained earnings	125,374		338,371		(44,746		)	(293,941		)	125,058
Mohegan Tribal Gaming Authority capital	125,374		338,371		(44,746		)	(293,941		)	125,058
Non-controlling interests	—		—		—			(231		)	(231		)
Total capital	125,374		338,371		(44,746		)	(294,172		)	124,827
Total liabilities and capital	$	1,935,577	$	636,968	$	110,302		$	(626,887	)	$	2,055,960

___________

(1)   Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2)   Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

F-33

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	September 30, 2013
	Authority		Total Guarantor Subsidiaries (1)		Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	44,060	$	18,655	$	909		$	—		$	63,624
Restricted cash	—		1,714		12,043			—			13,757
Receivables, net	23,186		2,717		239			—			26,142
Inventories	12,928		1,062		—			—			13,990
Other current assets	18,125		1,197		1,196			—			20,518
Total current assets	98,299		25,345		14,387			—			138,031
Non-current assets:
Property and equipment, net	1,193,676		225,263		57,236			—			1,476,175
Goodwill	—		39,459		—			—			39,459
Other intangible assets, net	120,508		285,010		—			—			405,518
Other assets, net	35,159		3,891		38,127			(210		)	76,967
Intercompany receivables	238,545		37,149		—			(275,694		)	—
Investment in subsidiaries	332,737		—		—			(332,737		)	—
Total assets	$	2,018,924	$	616,117	$	109,750		$	(608,641	)	$	2,136,150
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	25,156	$	—	$	63		$	—		$	25,219
Current portion of relinquishment liability	62,947		—		—			—			62,947
Due to Mohegan Tribe	808		—		5,500			—			6,308
Current portion of capital leases	2,302		—		—			—			2,302
Trade payables	8,901		1,613		17			—			10,531
Construction payables	6,790		558		3,663			—			11,011
Accrued interest payable	18,616		—		4,680			—			23,296
Other current liabilities	93,377		29,580		1,025			—			123,982
Total current liabilities	218,897		31,751		14,948			—			265,596
Non-current liabilities:
Long-term debt, net of current portion	1,582,768		—		45,405			—			1,628,173
Relinquishment liability, net of current portion	11,418		—		—			—			11,418
Due to Mohegan Tribe, net of current portion	—		—		23,420			—			23,420
Capital leases, net of current portion	3,138		—		—			—			3,138
Other long-term liabilities	2,941		—		2,079			—			5,020
Intercompany payables	—		236,772		38,922			(275,694		)	—
Accumulated losses in excess of investment in subsidiaries	—		6,832		—			(6,832		)	—
Total liabilities	1,819,162		275,355		124,774			(282,526		)	1,936,765
Capital:
Retained earnings	199,762		340,762		(15,024		)	(326,264		)	199,236
Mohegan Tribal Gaming Authority capital	199,762		340,762		(15,024		)	(326,264		)	199,236
Non-controlling interests	—		—		—			149			149
Total capital	199,762		340,762		(15,024		)	(326,115		)	199,385
Total liabilities and capital	$	2,018,924	$	616,117	$	109,750		$	(608,641	)	$	2,136,150

___________

(1)   Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2)   Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

F-34

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS)

	For the Fiscal Year Ended September 30, 2014
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Revenues:
Gaming	$	858,780		$	274,783		$	—		$	—		$	1,133,563
Food and beverage	62,273			29,382			—			—			91,655
Hotel	42,921			4,389			—			—			47,310
Retail, entertainment and other	101,506			16,515			5,464			(4,351		)	119,134
Gross revenues	1,065,480			325,069			5,464			(4,351		)	1,391,662
Less-Promotional allowances	(76,618		)	(20,567		)	(17		)	(1,742		)	(98,944		)
Net revenues	988,862			304,502			5,447			(6,093		)	1,292,718
Operating costs and expenses:
Gaming	488,293			198,728			—			—			687,021
Food and beverage	32,348			9,134			—			—			41,482
Hotel	15,287			4,631			—			(4,111		)	15,807
Retail, entertainment and other	45,876			6,780			—			(1,711		)	50,945
Advertising, general and administrative	155,668			35,075			27,927			(28,031		)	190,639
Corporate	13,276			—			—			27,760			41,036
Depreciation and amortization	65,406			13,814			906			—			80,126
(Gain) loss on disposition of assets	(12		)	3			—			—			(9		)
Pre-opening	—			1,187			—			—			1,187
Impairment of Project Horizon	4,981			—			—			—			4,981
Relinquishment liability reassessment	(1,905		)	—			—			—			(1,905		)
Total operating costs and expenses	819,218			269,352			28,833			(6,093		)	1,111,310
Income (loss) from operations	169,644			35,150			(23,386		)	—			181,408
Other income (expense):
Accretion of discount to the relinquishment liability	(2,205		)	—			—			—			(2,205		)
Interest income	88			4,704			7,306			(5,032		)	7,066
Interest expense, net of capitalized interest	(97,380		)	(42,583		)	(13,002		)	5,032			(147,933		)
Loss on early extinguishment of debt	(62,041		)	—			—			—			(62,041		)
Loss on interests in subsidiaries	(32,449		)	(24,848		)	—			57,297			—
Other income (expense), net	165			—			(1,018		)	—			(853		)
Total other expense	(193,822		)	(62,727		)	(6,714		)	57,297			(205,966		)
Net loss	(24,178		)	(27,577		)	(30,100		)	57,297			(24,558		)
Loss attributable to non-controlling interests	—			—			—			380			380
Net loss attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	(27,577	)	$	(30,100	)	$	57,677		$	(24,178	)

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

F-35

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	For the Fiscal Year Ended September 30, 2013
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Revenues:
Gaming	$	911,180		$	279,022		$	—		$	—		$	1,190,202
Food and beverage	59,334			26,917			—			—			86,251
Hotel	40,873			—			—			—			40,873
Retail, entertainment and other	100,545			16,679			1,575			(240		)	118,559
Gross revenues	1,111,932			322,618			1,575			(240		)	1,435,885
Less-Promotional allowances	(76,407		)	(17,300		)	(4		)	(2,146		)	(95,857		)
Net revenues	1,035,525			305,318			1,571			(2,386		)	1,340,028
Operating costs and expenses:
Gaming	507,069			201,860			—			—			708,929
Food and beverage	33,297			8,280			(2		)	—			41,575
Hotel	14,339			—			—			—			14,339
Retail, entertainment and other	40,371			5,589			—			(2,101		)	43,859
Advertising, general and administrative	159,869			32,997			13,373			(13,566		)	192,673
Corporate	14,841			—			—			13,281			28,122
Depreciation and amortization	67,097			13,220			—			—			80,317
Loss on disposition of assets	222			19			—			—			241
Severance	(146		)	175			—			—			29
Pre-opening	—			687			—			—			687
Relinquishment liability reassessment	(249		)	—			—			—			(249		)
Total operating costs and expenses	836,710			262,827			13,371			(2,386		)	1,110,522
Income (loss) from operations	198,815			42,491			(11,800		)	—			229,506
Other income (expense):
Accretion of discount to the relinquishment liability	(4,974		)	—			—			—			(4,974		)
Interest income	146			2,320			6,064			(2,259		)	6,271
Interest expense, net of capitalized interest	(118,303		)	(44,126		)	(9,980		)	2,259			(170,150		)
Loss on early extinguishment of debt	(11,516		)	—			—			—			(11,516		)
Loss on interests in subsidiaries	(13,834		)	(7,389		)	—			21,223			—
Other expense, net	(8		)	—			(1,587		)	—			(1,595		)
Total other expense	(148,489		)	(49,195		)	(5,503		)	21,223			(181,964		)
Net income (loss)	50,326			(6,704		)	(17,303		)	21,223			47,542
Loss attributable to non-controlling interests	—			—			—			2,784			2,784
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	50,326		$	(6,704	)	$	(17,303	)	$	24,007		$	50,326

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

F-36

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	For the Fiscal Year Ended September 30, 2012
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Net revenues	$	1,079,411		$	321,563		$	285		$	(1,946	)	$	1,399,313
Operating costs and expenses:
Gaming and other operations	643,557			230,263			—			(1,946		)	871,874
Advertising, general and administrative	177,486			33,272			4,582			210			215,550
Depreciation and amortization	68,666			16,364			—			—			85,030
Loss on disposition of assets	68			285			—			—			353
Severance	12,521			—			—			—			12,521
Relinquishment liability reassessment	(11,439		)	—			—			—			(11,439		)
Total operating costs and expenses	890,859			280,184			4,582			(1,736		)	1,173,889
Income (loss) from operations	188,552			41,379			(4,297		)	(210		)	225,424
Accretion of discount to the relinquishment liability	(8,248		)	—			—			—			(8,248		)
Interest expense, net of capitalized interest	(72,520		)	(69,533		)	(4,979		)	975			(146,057		)
Loss on early extinguishment of debt	(14,326		)	—			—			—			(14,326		)
Loss on interests in subsidiaries	(30,498		)	(1,944		)	—			32,442			—
Other income, net	300			1,051			4,072			(975		)	4,448
Net income (loss)	63,260			(29,047		)	(5,204		)	32,232			61,241
Loss attributable to non-controlling interests	—			—			—			2,019			2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	63,260		$	(29,047	)	$	(5,204	)	$	34,251		$	63,260

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

F-37

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Fiscal Year Ended September 30, 2014
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Cash flows provided by (used in) operating activities:
Net loss	$	(24,178	)	$	(27,577	)	$	(30,100	)	$	57,297		$	(24,558	)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:
Depreciation and amortization	65,406			13,814			906			—			80,126
Relinquishment liability reassessment	(1,905		)	—			—			—			(1,905		)
Accretion of discount to the relinquishment liability	2,205			—			—			—			2,205
Cash paid for accretion of discount to the relinquishment liability	(2,897		)	—			—			—			(2,897		)
Loss on early extinguishment of debt	58,245			—			—			—			58,245
Payments of tender offer costs and discounts	(48,155		)	—			—			—			(48,155		)
Amortization of debt issuance costs and accretion of bond discounts	7,719			—			318			—			8,037
Provision for losses on receivables	2,368			390			3,388			—			6,146
Impairment of Project Horizon	4,981			—			—			—			4,981
(Gain) loss on disposition of assets	(12		)	3			—			—			(9		)
(Gain) loss from unconsolidated affiliates	(178		)	—			1,004			—			826
Intercompany transactions	(9,896		)	62,401			4,783			(57,288		)	—
Changes in operating assets and liabilities:
Increase in receivables	(6,622		)	(310		)	(1,783		)	1,556			(7,159		)
Increase in inventories	(411		)	(143		)	—			—			(554		)
(Increase) decrease in other assets	3,236			(77		)	(5,888		)	(802		)	(3,531		)
Increase (decrease) in trade payables	9,858			3,568			(7		)	—			13,419
Decrease in accrued interest	(12,891		)	—			(1,746		)	—			(14,637		)
Increase (decrease) in other liabilities	(4,587		)	(573		)	8,359			(763		)	2,436
Net cash flows provided by (used in) operating activities	42,286			51,496			(20,766		)	—			73,016
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(18,629		)	(4,250		)	(12,200		)	—			(35,079		)
Issuance of third-party loans and advances	—			—			(1,804		)	—			(1,804		)
Payments received on third-party loans	644			—			—			—			644
Decrease in restricted cash, net	53			1,583			12,043			—			13,679
Proceeds from asset sales	104			30			—			—			134
Investments in unconsolidated affiliates	—			—			(29		)	—			(29		)
Intercompany transactions	27,195			(24,222		)	45			(3,018		)	—
Net cash flows provided by (used in) investing activities	9,367			(26,859		)	(1,945		)	(3,018		)	(22,455		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	(393,000		)	—			—			—			(393,000		)
Prior Term Loan Facility repayments, net of discount	(222,103		)	—			—			—			(222,103		)
Senior Secured Credit Facility borrowings - Revolving	310,000			—			—			—			310,000
Senior Secured Credit Facility repayments - Revolving	(273,000		)	—			—			—			(273,000		)
Senior Secured Credit Facility borrowings - Term Loan A, net of discount	124,343			—			—			—			124,343
Senior Secured Credit Facility repayments - Term Loan A	(3,125		)	—			—			—			(3,125		)
Senior Secured Credit Facility borrowings - Term Loan B, net of discount	720,952			—			—			—			720,952
Senior Secured Credit Facility repayments - Term Loan B	(5,475		)	—			—			—			(5,475		)
Line of Credit borrowings	356,796			—			—			—			356,796
Line of Credit repayments	(353,755		)	—			—			—			(353,755		)

F-38

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Repayments to Mohegan Tribe	—			—			(3,250		)	—		(3,250		)
Repayments of other long-term debt	(212,270		)	—			(53		)	—		(212,323		)
Principal portion of relinquishment liability payments	(46,574		)	—			—			—		(46,574		)
Distributions to Mohegan Tribe	(50,000		)	—			—			—		(50,000		)
Payments of financing fees	(12,395		)	—			—			—		(12,395		)
Payments on capital lease obligations	(2,168		)	(45		)	—			45		(2,168		)
Intercompany transactions	—			(28,480		)	25,507			2,973		—
Net cash flows provided by (used in) financing activities	(61,774		)	(28,525		)	22,204			3,018		(65,077		)
Net decrease in cash and cash equivalents	(10,121		)	(3,888		)	(507		)	—		(14,516		)
Cash and cash equivalents at beginning of year	44,060			18,655			909			—		63,624
Cash and cash equivalents at end of year	$	33,939		$	14,767		$	402		$	—	$	49,108

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2013
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Cash flows provided by (used in) operating activities:
Net income (loss)	$	50,326		$	(6,704	)	$	(17,303	)	$	21,223		$	47,542
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	67,097			13,220			—			—			80,317
Relinquishment liability reassessment	(249		)	—			—			—			(249		)
Accretion of discount to the relinquishment liability	4,974			—			—			—			4,974
Cash paid for accretion of discount to the relinquishment liability	(5,792		)	—			—			—			(5,792		)
Payments of tender offer costs and discounts	(3,104		)	—			—			—			(3,104		)
Loss on early extinguishment of debt	4,531			—			—			—			4,531
Amortization of debt issuance costs and accretion of bond discounts	11,968			—			317			—			12,285
Amortization of net deferred gain on settlement of derivative instruments	(76		)	—			—			—			(76		)
Provision for losses on receivables	951			103			2,382			—			3,436
Loss on disposition of assets	222			19			—			—			241
(Gain) loss from unconsolidated affiliates	(11		)	—			1,564			—			1,553
Intercompany transactions	(30,508		)	49,282			2,449			(21,223		)	—
Changes in operating assets and liabilities:
(Increase) decrease in receivables	495			(1,011		)	(132		)	—			(648		)
Decrease in inventories	326			122			—			—			448
(Increase) decrease in other assets	8,255			41			(5,537		)	—			2,759
Increase (decrease) in trade payables	(2,367		)	265			(41		)	—			(2,143		)
Increase (decrease) in accrued interest	(23,183		)	—			117			—			(23,066		)
Increase (decrease) in other liabilities	(21,440		)	(773		)	2,156			—			(20,057		)
Net cash flows provided by (used in) operating activities	62,415			54,564			(14,028		)	—			102,951
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(24,774		)	(4,481		)	(30,342		)	—			(59,597		)
Issuance of third-party loans and advances	—			—			(2,033		)	—			(2,033		)
Payments received on third-party loans	139			—			—			—			139
(Increase) decrease in restricted cash, net	—			(423		)	33,501			—			33,078
Proceeds from asset sales	208			8			—			—			216
Investments in unconsolidated affiliates	—			—			(4,971		)	—			(4,971		)

F-39

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Intercompany transactions	24,289			(22,468		)	—			(1,821		)	—
Net cash flows used in investing activities	(138		)	(27,364		)	(3,845		)	(1,821		)	(33,168		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving	3,000			—			—			—			3,000
Prior Bank Credit Facility repayments - Revolving	(3,000		)	—			—			—			(3,000		)
Prior Bank Credit Facility repayments - Term	(4,000		)	—			—			—			(4,000		)
Line of Credit borrowings	24,897			—			—			—			24,897
Line of Credit repayments	(24,897		)	—			—			—			(24,897		)
Repayments to Mohegan Tribe	—			—			(9,950		)	—			(9,950		)
Proceeds from issuance of Senior Unsecured Notes	500,000			—			—			—			500,000
Repayments of other long-term debt	(495,561		)	—			(40		)	—			(495,601		)
Principal portion of relinquishment liability payments	(45,350		)	—			—			—			(45,350		)
Distributions to Mohegan Tribe	(50,000		)	—			—			—			(50,000		)
Payments of financing fees	(11,757		)	—			(200		)	—			(11,957		)
Payments on capital lease obligations	(3,385		)	—			—			—			(3,385		)
Intercompany transactions	—			(30,302		)	28,481			1,821			—
Net cash flows provided by (used in) financing activities	(110,053		)	(30,302		)	18,291			1,821			(120,243		)
Net increase (decrease) in cash and cash equivalents	(47,776		)	(3,102		)	418			—			(50,460		)
Cash and cash equivalents at beginning of year	91,836			21,757			491			—			114,084
Cash and cash equivalents at end of year	$	44,060		$	18,655		$	909		$	—		$	63,624

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

F-40

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	For the Fiscal Year Ended September 30, 2012
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Net cash flows provided by (used in) operating activities	$	122,057		$	59,240		$	(4,300	)	$	—		$	176,997
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(37,523		)	(7,175		)	(2,773		)	—			(47,471		)
(Increase) decrease in restricted cash, net	—			313			(45,544		)	—			(45,231		)
Other cash flows provided by (used in) investing activities	53,718			3,372			(902		)	(54,822		)	1,366
Net cash flows provided by (used in) investing activities	16,195			(3,490		)	(49,219		)	(54,822		)	(91,336		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving	154,000			—			—			—			154,000
Prior Bank Credit Facility repayments - Revolving	(289,000		)	—			—			—			(289,000		)
Prior Bank Credit Facility repayments - Term	(3,000		)	—			—			—			(3,000		)
Prior Term Loan Facility borrowings, net of discount	220,500			—			—			—			220,500
Line of Credit borrowings	225,215			—			—			—			225,215
Line of Credit repayments	(225,215		)	—			—			—			(225,215		)
Borrowings from Mohegan Tribe	—			—			20,600			—			20,600
Repayments of other long-term debt	(66,454		)	—			—			—			(66,454		)
Salishan-Mohegan Bank Credit Facility repayments -Revolving	—			—			(15,250		)	—			(15,250		)
Downs Lodging Credit Facility borrowings - Term	—			—			45,000			—			45,000
Principal portion of relinquishment liability payments	(45,258		)	—			—			—			(45,258		)
Distributions to Mohegan Tribe	(52,950		)	—			—			—			(52,950		)
Payments of financing fees	(50,440		)	—			(1,073		)	—			(51,513		)
Other cash flows provided by (used in) financing activities	(2,832		)	(56,924		)	4,508			54,822			(426		)
Net cash flows provided by (used in) financing activities	(135,434		)	(56,924		)	53,785			54,822			(83,751		)
Net increase (decrease) in cash and cash equivalents	2,818			(1,174		)	266			—			1,910
Cash and cash equivalents at beginning of year	89,018			22,931			225			—			112,174
Cash and cash equivalents at end of year	$	91,836		$	21,757		$	491		$	—		$	114,084

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

F-41

MOHEGAN TRIBAL GAMING AUTHORITY

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2014, 2013 and 2012

(in thousands)

	Column A		Column B		Column C		Column D
	Balances at Beginning of Year		Charges to Costs and Expenses		Deductions from Reserves (1)		Balances at End of Year
Description:
Fiscal Year ended September 30, 2014
Reserves and allowances deducted from asset accounts:
Reserves for uncollectible accounts:	$	34,420	$	6,146	$	1,930	$	38,636
Fiscal Year ended September 30, 2013
Reserves and allowances deducted from asset accounts:
Reserves for uncollectible accounts:	$	30,998	$	3,436	$	14	$	34,420
Fiscal Year Ended September 30, 2012
Reserves and allowances deducted from asset accounts:
Reserves for uncollectible accounts:	$	30,737	$	3,189	$	2,928	$	30,998

 ________________________

(1) Deductions from reserves include write-off of uncollectible accounts, net of recoveries of accounts previously written-off.

S-1

EXHIBIT INDEX

Exhibit No.	Description
3.1	Constitution of the Mohegan Tribe of Indians of Connecticut, as amended (filed as Exhibit 3.1 to the Authority’s Registration Statement on Form S-4, filed with the SEC on January 27, 2014 (the “2014 Form S-4”) and incorporated by reference herein).
3.2	Ordinance No. 95-2 of the Tribe for Gaming on Tribal Lands, enacted on July 15, 1995 (filed as Exhibit 3.2 to the Authority’s Amendment No. 1 to its Registration Statement on Form S-1, filed with the SEC on February 29, 1996 (the "1996 Form S-1") and incorporated by reference herein).
3.3	Articles of Organization of Mohegan Basketball Club, LLC, dated as of January 27, 2003 (filed as Exhibit 3.3 to the Authority’s Registration Statement on Form S-4, filed with the SEC on September 23, 2003 (the “2003 Form S-4”) and incorporated by reference herein).
3.4	Operating Agreement of Mohegan Basketball Club, LLC, a Mohegan Tribe of Indians of Connecticut limited liability company, dated as of January 24, 2003 (filed as Exhibit 3.4 to the 2003 Form S-4 and incorporated by reference herein).
3.5	Certificate of Organization of Mohegan Commercial Ventures PA, LLC, dated as of January 5, 2005, as amended (filed as Exhibit 3.5 to the Authority’s Registration Statement on Form S-4, filed with the SEC on June 7, 2005 (the “2005 Form S-4”) and incorporated by reference herein).
3.6	Operating Agreement of Mohegan Commercial Ventures PA, LLC, a Commonwealth of Pennsylvania limited liability company, dated as of December 15, 2004 (filed as Exhibit 3.6 to the 2005 Form S-4 and incorporated by reference herein).
3.7	Certificate of Limited Partnership of Downs Racing, L.P., dated as of January 5, 2005, as amended (filed as Exhibit 3.7 to the 2005 Form S-4 and incorporated by reference herein).
3.8	Amended and Restated Limited Partnership Agreement of Downs Racing, L.P., dated as of January 25, 2005 (filed as Exhibit 3.8 to the 2005 Form S-4 and incorporated by reference herein).
3.9	Certificate of Limited Partnership of Backside, L.P., dated as of January 5, 2005, as amended (filed as Exhibit 3.9 to the 2005 Form S-4 and incorporated by reference herein).
3.10	Amended and Restated Limited Partnership Agreement of Backside, L.P., dated as of January 25, 2005 (filed as Exhibit 3.10 to the 2005 Form S-4 and incorporated by reference herein).
3.11	Certificate of Limited Partnership of Mill Creek Land, L.P., dated as of January 5, 2005, as amended (filed as Exhibit 3.11 to the 2005 Form S-4 and incorporated by reference herein).
3.12	Amended and Restated Limited Partnership Agreement of Mill Creek Land, L.P., dated as of January 25, 2005 (filed as Exhibit 3.12 to the 2005 Form S-4 and incorporated by reference herein).
3.13	Certificate of Limited Partnership of Northeast Concessions, L.P., dated as of January 5, 2005, as amended (filed as Exhibit 3.13 to the 2005 Form S-4 and incorporated by reference herein).
3.14	Amended and Restated Limited Partnership Agreement of Northeast Concessions, L.P., dated as of January 25, 2005 (filed as Exhibit 3.14 to the 2005 Form S-4 and incorporated by reference herein).
3.15	Articles of Organization of Mohegan Ventures-Northwest, LLC, dated as of July 23, 2004 (filed as Exhibit 3.15 to the Authority’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006, filed with the SEC on August 10, 2006 (the “June 2006 Form 10-Q”) and incorporated by reference herein).
3.16	Operating Agreement of Mohegan Ventures-Northwest, LLC, a Mohegan Tribe of Indians of Connecticut limited liability company, dated as of July 23, 2004 (filed as Exhibit 3.16 to the June 2006 Form 10-Q and incorporated by reference herein).
3.17	Articles of Organization of Mohegan Golf, LLC, dated as of November 20, 2006 (filed as Exhibit 3.17 to the Authority’s Annual Report on Form 10-K for the fiscal year ended September 30, 2006, filed with the SEC on December 21, 2006 (the “2006 Form 10-K”) and incorporated by reference herein).
3.18	Certificate of Formation of Wisconsin Tribal Gaming, LLC, dated as of February 27, 2007 (filed as Exhibit 3.18 to the Authority’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2007, filed with the SEC on May 15, 2007 (the “March 2007 Form 10-Q”) and incorporated by reference herein).

Exhibit No.	Description
3.19	Articles of Organization of Mohegan Ventures Wisconsin, LLC, dated as of March 1, 2007 (filed as Exhibit 3.19 to the March 2007 Form 10-Q and incorporated by reference herein).
3.20	Certificate of Formation of MTGA Gaming, LLC, dated as of July 27, 2007 (filed as Exhibit 3.20 to the Authority’s Annual Report on Form 10-K for the fiscal year ended September 30, 2007, filed with the SEC on December 21, 2007 (the “2007 Form 10-K”) and incorporated by reference herein).
3.21	Articles of Amendment of Mohegan Golf, LLC, dated as of April 8, 2008 (filed as Exhibit 3.18 to the Authority’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008, filed with the SEC on May 15, 2008 and incorporated by reference herein).
3.22	Operating Agreement of Mohegan Golf, LLC, dated as of April 8, 2008 (filed as Exhibit 3.22 to the 2014 Form S-4 and incorporated by reference herein).
3.23	Operating Agreement of Mohegan Ventures Wisconsin, LLC, dated as of March 1, 2007 (filed as Exhibit 3.23 to the 2014 Form S-4 and incorporated by reference herein).
3.24	Certificate of Amendment to Certificate of Formation of Wisconsin Tribal Gaming, LLC, dated as of May 20, 2009 (filed as Exhibit 3.24 to the 2014 Form S-4 and incorporated by reference herein).
3.25	Operating Agreement of Wisconsin Tribal Gaming, LLC, dated as of March 1, 2007 (filed as Exhibit 3.25 to the 2014 Form S-4 and incorporated by reference herein).
3.26	Certificate of Amendment to Certificate of Formation of MTGA Gaming, LLC, dated as of May 20, 2009 (filed as Exhibit 3.26 to the 2014 Form S-4 and incorporated by reference herein).
3.27	Operating Agreement of MTGA Gaming, LLC, dated as of August 1, 2007 (filed as Exhibit 3.27 to the 2014 Form S-4 and incorporated by reference herein).
4.1	Relinquishment Agreement, dated as of February 7, 1998, between the Mohegan Tribal Gaming Authority, The Mohegan Tribe of Indians of Connecticut and Trading Cove Associates (filed as Exhibit 10.14 to the Authority’s Form 10-K405 for the fiscal year ended September 30, 1998, filed with the SEC on December 29, 1998 (the "1998 Form 10-K") and incorporated by reference herein).
4.2	Indenture, dated as of February 8, 2005, between the Mohegan Tribal Gaming Authority, the Mohegan Tribe of Indians of Connecticut, the Subsidiary Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 6 7/8% Senior Subordinated Notes Due 2015 (filed as Exhibit 4.28 to the Authority’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2004, filed with the SEC on February 14, 2005 (the “December 2004 Form 10-Q”) and incorporated by reference herein).
4.3	Supplemental Indenture No. 1, dated as of August 4, 2006, between the Mohegan Tribal Gaming Authority, Mohegan Ventures-Northwest, LLC (as the Subsidiary Guarantor), the other Subsidiary Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 6 7/8% Senior Subordinated Notes Due 2015 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.23 to the June 2006 Form 10-Q and incorporated by reference herein).
4.4	Supplemental Indenture No. 2, dated as of December 18, 2006, between the Mohegan Tribal Gaming Authority, Mohegan Golf, LLC (as the Subsidiary Guarantor), the other Subsidiary Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 6 7/8% Senior Subordinated Notes Due 2015 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.27 to the 2006 Form 10-K and incorporated by reference herein).
4.5	Supplemental Indenture No. 3, dated as of March 28, 2007, between the Mohegan Tribal Gaming Authority, Wisconsin Tribal Gaming, LLC and Mohegan Ventures Wisconsin, LLC (each a Subsidiary Guarantor), the other Subsidiary Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 6 7/8% Senior Subordinated Notes Due 2015 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.31 to the March 2007 Form 10-Q and incorporated by reference herein).
4.6	Supplemental Indenture No. 4, dated as of August 27, 2007, between the Mohegan Tribal Gaming Authority, MTGA Gaming, LLC (as the Subsidiary Guarantor), the other Subsidiary Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 6 7/8% Senior Subordinated Notes Due 2015 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.35 to the 2007 Form 10-K and incorporated by reference herein).
4.7	Supplemental Indenture No. 5, dated as of March 5, 2012, between the Mohegan Tribal Gaming Authority, The Mohegan Tribe of Indians of Connecticut, the Subsidiary Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 6 7/8% Senior Subordinated Notes Due 2015 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.26 to the Authority’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012, filed with the SEC on May 14, 2012 (the “March 2012 Form 10-Q”) and incorporated by reference herein).

Exhibit No.	Description
4.8	Form of Global 6 7/8% Senior Subordinated Notes Due 2015 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.29 to the December 2004 Form 10-Q and incorporated by reference herein).
4.9	Indenture, dated as of March 6, 2012, between the Mohegan Tribal Gaming Authority, The Mohegan Tribe of Indians of Connecticut, the Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 11% Senior Subordinated Notes Due 2018 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.42 to the March 2012 Form 10-Q and incorporated by reference herein).
4.10	Form of Global 11% Senior Subordinated Notes Due 2018 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.43 to the March 2012 Form 10-Q and incorporated by reference herein).
4.11	Indenture, dated as of August 15, 2013, between the Mohegan Tribal Gaming Authority, The Mohegan Tribe of Indians of Connecticut, the Guarantors (as defined under the Indenture) and U.S. Bank National Association, as Trustee, relating to the 9 3/4% Senior Notes Due 2021 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.29 to the Authority’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013, filed with the SEC on December 27, 2013 (the “2013 Form 10-K”) and incorporated by reference herein).
4.12	Form of Global 9 3/4% Senior Notes Due 2021 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.30 to the 2013 Form 10-K and incorporated by reference herein).
4.13	Registration Rights Agreement, dated August 15, 2013, between the Mohegan Tribal Gaming Authority, the subsidiary guarantors party thereto and Credit Suisse Securities (USA) LLC and RBS Securities Inc., as representatives of the several initial purchasers, relating to the 9 3/4% Senior Notes Due 2021 of the Mohegan Tribal Gaming Authority (filed as Exhibit 4.31 to the 2013 Form 10-K and incorporated by reference herein).
10.1	The Mohegan Tribe—State of Connecticut Gaming Compact between the Mohegan Tribe of Indians of Connecticut and the State of Connecticut (filed as Exhibit 10.1 to the 1996 Form S-1 and incorporated by reference herein).
10.2	Agreement, dated as of April 25, 1994, between the Mohegan Tribe of Indians of Connecticut and the State of Connecticut resolving certain land claims (filed as Exhibit 10.2 to the 1996 Form S-1 and incorporated by reference herein).
10.3	Memorandum of Understanding, dated as of April 25, 1994, between the Mohegan Tribe of Indians of Connecticut and the State of Connecticut regarding implementation of the Compact and the Resolution Agreement (filed as Exhibit 10.3 to the 1996 Form S-1 and incorporated by reference herein).
10.4	Agreement, dated as of June 16, 1994, between the Mohegan Tribe of Indians of Connecticut and the Town of Montville, Connecticut (filed as Exhibit 10.4 to the 1996 Form S-1 and incorporated by reference herein).
10.5	Land Lease, dated as of September 29, 1995, between the Mohegan Tribe of Indians of Connecticut and the Mohegan Tribal Gaming Authority (filed as Exhibit 10.5 to the 1996 Form S-1 and incorporated by reference herein).
10.6	Amendment to the Land Lease, dated as of February 19, 1999, between the Mohegan Tribe of Indians of Connecticut and the Mohegan Tribal Gaming Authority (filed as Exhibit 10.6 to the Authority’s Registration Statement on Form S-4, filed with the SEC on April 21, 1999 and incorporated by reference herein).
10.7	Amendment to the Land Lease, dated as of March 6, 2007, between the Mohegan Tribe of Indians of Connecticut and the Mohegan Tribal Gaming Authority (filed as Exhibit 10.1 to the Authority’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, filed with the SEC on August 13, 2007 and incorporated by reference herein).
10.8	The Merrill Lynch Non-Qualified Deferred Compensation Plan Trust Agreement, dated as of September 1, 1998, between the Mohegan Tribal Gaming Authority and Merrill Lynch Trust (filed as Exhibit 10.16 to the 1998 Form 10-K and incorporated by reference herein).*
10.9	Priority Distribution Agreement, dated as of August 1, 2001, between the Mohegan Tribal Gaming Authority and the Mohegan Tribe of Indians of Connecticut (filed as Exhibit 10.1 to the Authority’s Quarterly Report on Form 10-Q for the period ended June 30, 2001, filed with the SEC on August 10, 2001 and incorporated by reference herein).
10.10	Membership Agreement, dated as of January 28, 2003, between WNBA, LLC, the Mohegan Basketball Club, LLC, the Mohegan Tribal Gaming Authority and the Mohegan Tribe of Indians of Connecticut (filed as Exhibit 10.1 to the Authority’s Form 8-K filed with the SEC on January 30, 2003 and incorporated by reference herein).

Exhibit No.	Description
10.11	Management Agreement, dated as of September 21, 2004, between The Cowlitz Indian Tribe and Salishan-Mohegan, LLC (filed as Exhibit 10.30 to the Authority’s Registration Statement on Form S-4, filed with the SEC on November 1, 2004 (the "2004 Form S-4") and incorporated by reference herein).
10.12	Development Agreement, dated as of September 21, 2004, between The Cowlitz Indian Tribe and Salishan-Mohegan, LLC (filed as Exhibit 10.31 to the 2004 Form S-4 and incorporated by reference herein).
10.13	Management Agreement, dated as of October 21, 2004, between the Menominee Indian Tribe of Wisconsin, the Menominee Kenosha Gaming Authority and the Mohegan Tribal Gaming Authority (filed as Exhibit 10.35 to the 2004 Form S-4 and incorporated by reference herein).
10.14	The Mohegan Retirement and 401(k) Plan Trust Agreement, dated as of July 1, 2005, between the Mohegan Tribe of Indians of Connecticut and Merrill Lynch Trust Company, FSB (filed as Exhibit 10.30 to the Authority’s Annual Report on Form 10-K for the fiscal year ended September 30, 2005, filed with the SEC on December 9, 2005 and incorporated by reference herein).*
10.15	Employment Agreement, dated as of July 28, 2006, between the Mohegan Tribal Gaming Authority and Mitchell Grossinger Etess (filed as Exhibit 10.1 to the Authority’s Form 8-K, filed with the SEC on August 3, 2006 and incorporated by reference herein).*
10.16	Amended Employment Agreement, dated as of February 23, 2009, between the Mohegan Tribal Gaming Authority and Mitchell Grossinger Etess (filed as Exhibit 10.1 to the Authority’s Form 8-K, filed with the SEC on February 27, 2009 and incorporated by reference herein).*
10.17	Employment Agreement, effective as of September 1, 2011, between the Mohegan Tribal Gaming Authority and Mario C. Kontomerkos (filed as Exhibit 10.1 to the Authority’s Form 8-K, filed with the SEC on September 8, 2011 and incorporated by reference herein).*
10.18	Amended Employment Agreement, dated as of February 14, 2012, between the Mohegan Tribal Gaming Authority and Mitchell Grossinger Etess (filed as Exhibit 10.1 to the Authority’s Form 8-K, filed with the SEC on February 21, 2012 and incorporated by reference herein).*
10.19	Employment Agreement, executed March 29, 2013, by and between the Mohegan Tribal Gaming Authority and Robert J. Soper(filed as Exhibit 10.1 to the Authority’s Form 8-K, filed with the SEC on April 4, 2013 and incorporated by reference herein).*
10.20	Loan Agreement, dated as of November 19, 2013, between the Mohegan Tribal Gaming Authority, the Mohegan Tribe of Indians of Connecticut, the Lenders named therein and RBS Citizens, N.A., as Administrative Agent (filed as Exhibit 10.25 to the 2013 Form 10-K and incorporated by reference herein).
12.1	Statement regarding computation of ratio of earnings to fixed charges (filed herewith).
21.1	Subsidiaries of the Registrant (filed as Exhibit 21.1 to the 2014 Form S-4 and incorporated by reference herein).
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer (filed herewith).
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer (filed herewith).
32.1	Section 1350 Certification of Chief Executive Officer (filed herewith).
32.2	Section 1350 Certification of Chief Financial Officer (filed herewith).
101.INS**	XBRL Instance Document (filed herewith).
101.SCH**	XBRL Taxonomy Extension Schema (filed herewith).
101.CAL**	XBRL Taxonomy Calculation Linkbase (filed herewith).
101.DEF**	XBRL Taxonomy Extension Definition Linkbase (filed herewith).
101.LAB**	XBRL Taxonomy Extension Label Linkbase (filed herewith).
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase (filed herewith).

 _____________

* Management contract or compensatory plan or arrangement.

** Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibits 101 to this Annual Report on Form 10-K shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

EX-12.1

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES

	For the Fiscal Years Ended September 30,
	2014			2013			2012			2011		2010
(in thousands, except ratios)
Net income (loss)	$	(20,996	)	$	47,542		$	61,241		$	111,843	$	7,454
Fixed charges	152,017			178,196			155,595			130,402		133,737
Amortization of capitalized interest	2,203			2,204			2,221			2,229		2,231
Capitalized interest	(735		)	(1,976		)	(34		)	—		(66		)
Loss attributable to non-controlling interests	380			2,784			2,019			2,134		2,258
Earnings	$	132,869		$	228,750		$	221,042		$	246,608	145,614
Interest expense, net of capitalized interest and amortization of debt issuance costs and accretion of bond discounts	$	139,896		$	157,865		$	136,070		$	109,899	$	109,032
Capitalized interest	735			1,976			34			—		66
Amortization of debt issuance costs and accretion of bond discounts	8,037			12,285			9,987			7,811		7,752
Interest portion of rental expense (1)	1,144			1,096			1,256			1,326		1,461
Accretion of discount to the relinquishment liability	2,205			4,974			8,248			11,366		15,426
Fixed charges	$	152,017		$	178,196		$	155,595		$	130,402	$	133,737
Ratio of earnings to fixed charges (2)	0.87			1.28			1.42			1.89		1.09

 ________________________

(1) A 10% factor was utilized to calculate the interest portion of rental expense, which the Authority believes to be a reasonable approximation.

(2) Pursuant to Item 503 of Regulation S-K.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Mitchell Grossinger Etess, certify that:

1. I have reviewed this Annual Report on Form 10-K for the fiscal year ended September 30, 2014 of the Mohegan Tribal Gaming Authority;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) and internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	December 24, 2014	/s/ MITCHELL GROSSINGER ETESS
		Mitchell Grossinger Etess Chief Executive Officer, Mohegan Tribal Gaming Authority

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Mario C. Kontomerkos, certify that:

1. I have reviewed this Annual Report on Form 10-K for the fiscal year ended September 30, 2014 of the Mohegan Tribal Gaming Authority;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the condensed consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) and internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	December 24, 2014	/s/ MARIO C. KONTOMERKOS
		Mario C. Kontomerkos Chief Financial Officer, Mohegan Tribal Gaming Authority

EX-32.1

Exhibit 32.1

Written Statement of Chief Executive Officer

Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

The undersigned, the Chief Executive Officer of the Mohegan Tribal Gaming Authority (the “Authority”), hereby certifies that, to his knowledge, on the date hereof:

(a) this Annual Report on Form 10-K of the Authority for the fiscal year ended September 30, 2014 filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Authority.

/s/ MITCHELL GROSSINGER ETESS

Mitchell Grossinger Etess

Chief Executive Officer,

Mohegan Tribal Gaming Authority

December 24, 2014

A signed original of this written statement required by Section 906 has been provided to the Authority and will be retained by the Authority and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Written Statement of Chief Financial Officer

Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

The undersigned, the Chief Financial Officer of the Mohegan Tribal Gaming Authority (the “Authority”), hereby certifies that, to his knowledge, on the date hereof:

(a) this Annual Report on Form 10-K of the Authority for the fiscal year ended September 30, 2014 filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Authority.

/s/ MARIO C. KONTOMERKOS

Mario C. Kontomerkos

Chief Financial Officer,

Mohegan Tribal Gaming Authority

December 24, 2014

A signed original of this written statement required by Section 906 has been provided to the Authority and will be retained by the Authority and furnished to the Securities and Exchange Commission or its staff upon request.

XML

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Aug. 31, 2013	Feb. 28, 2005	Mar. 31, 2012
Senior Unsecured Notes | 2013 9 3/4% Senior Unsecured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	9.75%	9.75%	9.75%
Senior Subordinated Notes | 2005 6 7/8% Senior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	6.875%	6.875%		6.875%
Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	11.00%	11.00%	11.00%		11.00%
Carrying Value | Fair Value, Inputs, Level 2 | Credit Facility | Bank Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit facility value	37,000
Carrying Value | Fair Value, Inputs, Level 2 | Credit Facility | Term Loan A Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit facility value	119,789
Carrying Value | Fair Value, Inputs, Level 2 | Credit Facility | Term Loan B Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit facility value	716,188
Carrying Value | Fair Value, Inputs, Level 2 | Senior Unsecured Notes | 2013 9 3/4% Senior Unsecured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Note value	500,000
Carrying Value | Fair Value, Inputs, Level 2 | Senior Subordinated Notes | 2013 9 3/4% Senior Unsecured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	9.75%
Carrying Value | Fair Value, Inputs, Level 2 | Senior Subordinated Notes | 2005 6 7/8% Senior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	6.875%
Note value	9,654
Carrying Value | Fair Value, Inputs, Level 2 | Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	11.00%
Note value	271,684
Fair Value | Fair Value, Inputs, Level 2 | Credit Facility | Bank Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit facility value	36,676
Fair Value | Fair Value, Inputs, Level 2 | Credit Facility | Term Loan A Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit facility value	117,304
Fair Value | Fair Value, Inputs, Level 2 | Credit Facility | Term Loan B Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit facility value	710,940
Fair Value | Fair Value, Inputs, Level 2 | Senior Unsecured Notes | 2013 9 3/4% Senior Unsecured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Note value	505,625
Fair Value | Fair Value, Inputs, Level 2 | Senior Subordinated Notes | 2005 6 7/8% Senior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Note value	9,654
Fair Value | Fair Value, Inputs, Level 2 | Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Note value	274,846

XML

EMPLOYEE BENEFIT PLANS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Minimum annual contribution percent per employee	1.00%
Maximum annual contribution percent per employee	25.00%
Maximum employer match as percent of employee contribution	50.00%
Maximum match from employer as a percent of participants' salary	3.00%
Rate of discretionary employer contributions (in dollars per qualified hour)	0.30
Minimum eligibility period	90 days
Period to be fully vested	6 years
Contributions, net of forfeitures	$ 2,500	$ 2,400	$ 612
Deferred Compensation Arrangements [Abstract]
Percent of employee salary eligible for deferral	100.00%
Participant withdrawals, net of contributions	22	7,400
Participant contributions, net of withdrawals and changes in fair value of investments			$ 493

XML

LONG-TERM DEBT - Senior Secured Notes (Details) (USD $)	1 Months Ended
	Mar. 31, 2012	Sep. 30, 2014	Nov. 30, 2013	Sep. 30, 2013	Oct. 31, 2009
Debt Instrument [Line Items]
Accrued interest		8,659,000		$ 23,296,000
Senior Secured Notes | 2009 11 1/2% Second Lien Senior Secured Notes
Debt Instrument [Line Items]
Loan face amount					200,000,000.0
Note stated interest rate		11.50%		11.50%	11.50%
Debt extinguished	199,800,000
Debt outstanding before discount	200,000		200,000
Accrued interest				10,000
Senior Secured Notes | 2012 11 1/2% Second Lien Senior Secured Notes
Debt Instrument [Line Items]
Loan face amount	199,800,000
Note stated interest rate	11.50%	11.50%		11.50%
Ultimate premium amount	0
Accrued interest				$ 9,600,000

XML

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Mohegan Tribe
Commitments and Contingencies [Line Items]
Term of lease	25 years
Renewable period of additional term	25 years
Slot Win Contributions
Commitments and Contingencies [Line Items]
Contribution frequency period	12 months
Contribution determination criteria 1, percent of gross revenues from slot machines, lesser of	30.00%
Contribution determination criteria 2a, lesser of, percent of gross revenues from slot machines, greater of	25.00%
Contribution determination criteria 2b, lesser of, set cash contribution	$ 80,000,000.0
Contribution rate applied to excess free promotional play revenues in excess of limitation, if other than standard rate	25.00%
Limitation of excluded free promotional play as a percent of gross revenues from slot machines	11.00%
Slot win contributions	146,500,000	155,800,000	173,100,000
Slot win contributions outstanding	11,600,000	12,700,000
Pennsylvania Slot Machine Tax
Commitments and Contingencies [Line Items]
Tax rate applied to percent of gross revenues from slot machines	55.00%
Portion of taxed revenues subject to minimum annual local share assessment	2.00%
Minimum annual local share assessment	10,000,000.0
Escrow deposit for tax payments	1,500,000.0
Slot machine tax expense recognized	122,300,000	124,000,000	134,200,000
Slot machine tax expense, outstanding	4,600,000	5,500,000
Pennsylvania Slot Machine Tax | Downs Racing
Commitments and Contingencies [Line Items]
Number of slot machines at Mohegan Sun at Pocono Downs permitted by license	3,000
Number of slot machines at Mohegan Sun at Pocono Downs permitted by license expandable to	5,000
Pennsylvania Table Game Tax
Commitments and Contingencies [Line Items]
Subsequent table game tax rate	12.00%
Additional local tax	2.00%
Table game tax expense recognized	6,300,000	6,100,000	6,800,000
Table game tax expense outstanding	156,000	127,000
Pennsylvania Regulatory Fee
Commitments and Contingencies [Line Items]
Fee rate, percent of gross revenues from slot machines and table games	1.50%
Regulatory fee recognized	4,700,000	4,200,000	5,100,000
Regulatory fee outstanding	147,000	132,000
Pennsylvania Gaming Control Board Loans
Commitments and Contingencies [Line Items]
Loans obtained by PGCB	36,100,000
Additional Loans granted by PGCB	63,800,000
Number of authorized gaming facilities	14
Number of authorized gaming facilities that have commenced operations	12
PGCB loan repayment period	10 years
PGCB loan repayment expense	638,000	633,000	659,000
Horsemen's Agreement
Commitments and Contingencies [Line Items]
Purses earned by horsemen and other fees outstanding	8,100,000	7,800,000
Priority Distribution Agreement
Commitments and Contingencies [Line Items]
Annual initial amount of priority distribution payments	14,000,000
Priority distribution payments	19,500,000	19,200,000	18,800,000
Town of Montville Agreement
Commitments and Contingencies [Line Items]
Annual payments	$ 500,000
Land Lease Agreement
Commitments and Contingencies [Line Items]
Rental fee, percent of annual revenues for periods not occupied by primary tenant	8.00%
Land Lease Agreement | Mohegan Tribe
Commitments and Contingencies [Line Items]
Term of lease	25 years
Renewable period of additional term	25 years

XML

LONG-TERM DEBT - Schedules and Introduction (Details) (USD $)	1 Months Ended	12 Months Ended
	Nov. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Oct. 31, 2009	Mar. 31, 2012	Aug. 31, 2013	Aug. 31, 2004	Feb. 28, 2005	Sep. 30, 2009	Mar. 31, 2013
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		$ 1,730,936,000	$ 1,682,312,000
Less: current portion of long-term debt		(31,558,000)	(30,719,000)
Long-term debt, net of current portion		1,699,378,000	1,651,593,000
Long-term Debt, Fiscal Year Maturity [Abstract]
2015		31,558,000
2016		70,324,000
2017		30,105,000
2018		1,102,620,000
2019		7,725,000
Thereafter		500,970,000
Total		1,743,302,000
Prior Bank Credit Facilities and 2009 and 2012 Second Lien Senior Secured Notes
Long-term Debt, Fiscal Year Maturity [Abstract]
Refinancing costs	60,800,000
Losses on early exchange of debt, previously capitalized transaction costs		22,400,000
Losses on early exchange of debt, transaction costs not previously capitalized		39,600,000
Senior Secured Credit Facilities
Debt Schedule [Abstract]
Unamortized discount		9,700,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized debt issuance expense		11,500,000
Unamortized discount		9,700,000
Credit Facility | Prior Bank Credit Facility
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		0	393,000,000
Credit Facility | Prior Term Loan Facility
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		0	221,995,000
Unamortized discount			3,005,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized discount			3,005,000
Credit Facility | Senior Secured Credit Facility - Revolving
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		37,000,000	0
Credit Facility | Senior Secured Credit Facility - Term Loan A, due June 2018
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		119,789,000	0
Unamortized discount		523,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized discount		523,000
Credit Facility | Senior Secured Credit Facility - Term Loan B, due June 2018
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		716,188,000	0
Unamortized discount		8,337,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized discount		8,337,000
Credit Facility | Bank of America, N.A. Line of Credit
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		3,041,000	0
Credit Facility | Downs Lodging Credit Facility, due July 2016
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		45,000,000	45,000,000
Senior Secured Notes | 2009 11 1/2% Second Lien Senior Secured Notes
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		0	195,000
Unamortized discount			5,000
Interest rate		11.50%	11.50%	11.50%
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized discount			5,000
Senior Secured Notes | 2012 11 1/2% Second Lien Senior Secured Notes
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		0	190,902,000
Unamortized discount			8,898,000
Interest rate		11.50%	11.50%		11.50%
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized discount			8,898,000
Senior Unsecured Notes | 2013 9 3/4% Senior Unsecured Notes, due September 2021
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		500,000,000	500,000,000
Interest rate		9.75%	9.75%			9.75%
Senior Subordinated Notes | 2004 7 1/8% Senior Subordinated Notes
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		0	21,156,000
Interest rate		7.125%	7.125%				7.125%
Senior Subordinated Notes | 2005 6 7/8% Senior Subordinated Notes, due February 2015
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		9,654,000	9,654,000
Interest rate		6.875%	6.875%					6.875%
Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes, due September 2018
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		271,684,000	271,022,000
Unamortized discount		3,506,000	4,168,000
Interest rate		11.00%	11.00%		11.00%	11.00%
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized discount		3,506,000	4,168,000
Promissory Notes | 2009 Mohegan Tribe Promissory Note, due September 2015
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		1,750,000	3,500,000
Interest rate									10.00%
Promissory Notes | 2012 Mohegan Tribe Minor's Trust Promissory Note, due March 2017
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		16,500,000	18,000,000
Interest rate					10.00%
Promissory Notes | 2013 Mohegan Tribe Promissory Note, due December 2018
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		7,420,000	7,420,000
Interest rate										4.00%
Other Debt
Debt Schedule [Abstract]
Long-term debt, excluding capital leases		$ 2,910,000	$ 468,000

XML

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION (Tables)

12 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

CONDENSED CONSOLIDATING BALANCE SHEETS

	September 30, 2014
	Authority		Total Guarantor Subsidiaries (1)		Total Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	33,939	$	14,767	$	402		$	—		$	49,108
Restricted cash	47		628		—			—			675
Receivables, net	27,537		2,637		1,287			(821		)	30,640
Inventories	13,339		1,205		—			—			14,544
Other current assets	15,559		1,182		256			—			16,997
Total current assets	90,421		20,419		1,945			(821		)	111,964
Non-current assets:
Property and equipment, net	1,142,363		222,425		59,280			—			1,424,068
Goodwill	—		39,459		—			—			39,459
Other intangible assets, net	120,395		284,714		—			—			405,109
Other assets, net	28,625		3,970		49,077			(6,312		)	75,360
Intercompany receivables	228,122		65,981		—			(294,103		)	—
Investment in subsidiaries	325,651		—		—			(325,651		)	—
Total assets	$	1,935,577	$	636,968	$	110,302		$	(626,887	)	$	2,055,960
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	28,893	$	—	$	415		$	—		$	29,308
Current portion of relinquishment liability	25,194		—		—			—			25,194
Due to Mohegan Tribe	—		—		2,250			—			2,250
Current portion of capital leases	793		58		—			(58		)	793
Trade payables	18,893		5,181		12			—			24,086
Construction payables	4,411		794		627			—			5,832
Accrued interest payable	5,725		—		2,934			—			8,659
Other current liabilities	90,684		29,504		7,750			(763		)	127,175
Total current liabilities	174,593		35,537		13,988			(821		)	223,297
Non-current liabilities:
Long-term debt, net of current portion	1,630,958		—		45,000			—			1,675,958
Due to Mohegan Tribe, net of current portion	—		—		23,420			—			23,420
Capital leases, net of current portion	2,345		6,111		—			(6,111		)	2,345
Other long-term liabilities	2,307		—		3,806			—			6,113
Intercompany payables	—		225,269		68,834			(294,103		)	—
Accumulated losses in excess of investment in subsidiaries	—		31,680		—			(31,680		)	—
Total liabilities	1,810,203		298,597		155,048			(332,715		)	1,931,133
Capital:
Retained earnings	125,374		338,371		(44,746		)	(293,941		)	125,058
Mohegan Tribal Gaming Authority capital	125,374		338,371		(44,746		)	(293,941		)	125,058
Non-controlling interests	—		—		—			(231		)	(231		)
Total capital	125,374		338,371		(44,746		)	(294,172		)	124,827
Total liabilities and capital	$	1,935,577	$	636,968	$	110,302		$	(626,887	)	$	2,055,960

___________

(1)   Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2)   Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	September 30, 2013
	Authority		Total Guarantor Subsidiaries (1)		Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	44,060	$	18,655	$	909		$	—		$	63,624
Restricted cash	—		1,714		12,043			—			13,757
Receivables, net	23,186		2,717		239			—			26,142
Inventories	12,928		1,062		—			—			13,990
Other current assets	18,125		1,197		1,196			—			20,518
Total current assets	98,299		25,345		14,387			—			138,031
Non-current assets:
Property and equipment, net	1,193,676		225,263		57,236			—			1,476,175
Goodwill	—		39,459		—			—			39,459
Other intangible assets, net	120,508		285,010		—			—			405,518
Other assets, net	35,159		3,891		38,127			(210		)	76,967
Intercompany receivables	238,545		37,149		—			(275,694		)	—
Investment in subsidiaries	332,737		—		—			(332,737		)	—
Total assets	$	2,018,924	$	616,117	$	109,750		$	(608,641	)	$	2,136,150
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	25,156	$	—	$	63		$	—		$	25,219
Current portion of relinquishment liability	62,947		—		—			—			62,947
Due to Mohegan Tribe	808		—		5,500			—			6,308
Current portion of capital leases	2,302		—		—			—			2,302
Trade payables	8,901		1,613		17			—			10,531
Construction payables	6,790		558		3,663			—			11,011
Accrued interest payable	18,616		—		4,680			—			23,296
Other current liabilities	93,377		29,580		1,025			—			123,982
Total current liabilities	218,897		31,751		14,948			—			265,596
Non-current liabilities:
Long-term debt, net of current portion	1,582,768		—		45,405			—			1,628,173
Relinquishment liability, net of current portion	11,418		—		—			—			11,418
Due to Mohegan Tribe, net of current portion	—		—		23,420			—			23,420
Capital leases, net of current portion	3,138		—		—			—			3,138
Other long-term liabilities	2,941		—		2,079			—			5,020
Intercompany payables	—		236,772		38,922			(275,694		)	—
Accumulated losses in excess of investment in subsidiaries	—		6,832		—			(6,832		)	—
Total liabilities	1,819,162		275,355		124,774			(282,526		)	1,936,765
Capital:
Retained earnings	199,762		340,762		(15,024		)	(326,264		)	199,236
Mohegan Tribal Gaming Authority capital	199,762		340,762		(15,024		)	(326,264		)	199,236
Non-controlling interests	—		—		—			149			149
Total capital	199,762		340,762		(15,024		)	(326,115		)	199,385
Total liabilities and capital	$	2,018,924	$	616,117	$	109,750		$	(608,641	)	$	2,136,150

___________

(1)   Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2)   Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS)

	For the Fiscal Year Ended September 30, 2014
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Revenues:
Gaming	$	858,780		$	274,783		$	—		$	—		$	1,133,563
Food and beverage	62,273			29,382			—			—			91,655
Hotel	42,921			4,389			—			—			47,310
Retail, entertainment and other	101,506			16,515			5,464			(4,351		)	119,134
Gross revenues	1,065,480			325,069			5,464			(4,351		)	1,391,662
Less-Promotional allowances	(76,618		)	(20,567		)	(17		)	(1,742		)	(98,944		)
Net revenues	988,862			304,502			5,447			(6,093		)	1,292,718
Operating costs and expenses:
Gaming	488,293			198,728			—			—			687,021
Food and beverage	32,348			9,134			—			—			41,482
Hotel	15,287			4,631			—			(4,111		)	15,807
Retail, entertainment and other	45,876			6,780			—			(1,711		)	50,945
Advertising, general and administrative	155,668			35,075			27,927			(28,031		)	190,639
Corporate	13,276			—			—			27,760			41,036
Depreciation and amortization	65,406			13,814			906			—			80,126
(Gain) loss on disposition of assets	(12		)	3			—			—			(9		)
Pre-opening	—			1,187			—			—			1,187
Impairment of Project Horizon	4,981			—			—			—			4,981
Relinquishment liability reassessment	(1,905		)	—			—			—			(1,905		)
Total operating costs and expenses	819,218			269,352			28,833			(6,093		)	1,111,310
Income (loss) from operations	169,644			35,150			(23,386		)	—			181,408
Other income (expense):
Accretion of discount to the relinquishment liability	(2,205		)	—			—			—			(2,205		)
Interest income	88			4,704			7,306			(5,032		)	7,066
Interest expense, net of capitalized interest	(97,380		)	(42,583		)	(13,002		)	5,032			(147,933		)
Loss on early extinguishment of debt	(62,041		)	—			—			—			(62,041		)
Loss on interests in subsidiaries	(32,449		)	(24,848		)	—			57,297			—
Other income (expense), net	165			—			(1,018		)	—			(853		)
Total other expense	(193,822		)	(62,727		)	(6,714		)	57,297			(205,966		)
Net loss	(24,178		)	(27,577		)	(30,100		)	57,297			(24,558		)
Loss attributable to non-controlling interests	—			—			—			380			380
Net loss attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	(27,577	)	$	(30,100	)	$	57,677		$	(24,178	)

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2013
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Revenues:
Gaming	$	911,180		$	279,022		$	—		$	—		$	1,190,202
Food and beverage	59,334			26,917			—			—			86,251
Hotel	40,873			—			—			—			40,873
Retail, entertainment and other	100,545			16,679			1,575			(240		)	118,559
Gross revenues	1,111,932			322,618			1,575			(240		)	1,435,885
Less-Promotional allowances	(76,407		)	(17,300		)	(4		)	(2,146		)	(95,857		)
Net revenues	1,035,525			305,318			1,571			(2,386		)	1,340,028
Operating costs and expenses:
Gaming	507,069			201,860			—			—			708,929
Food and beverage	33,297			8,280			(2		)	—			41,575
Hotel	14,339			—			—			—			14,339
Retail, entertainment and other	40,371			5,589			—			(2,101		)	43,859
Advertising, general and administrative	159,869			32,997			13,373			(13,566		)	192,673
Corporate	14,841			—			—			13,281			28,122
Depreciation and amortization	67,097			13,220			—			—			80,317
Loss on disposition of assets	222			19			—			—			241
Severance	(146		)	175			—			—			29
Pre-opening	—			687			—			—			687
Relinquishment liability reassessment	(249		)	—			—			—			(249		)
Total operating costs and expenses	836,710			262,827			13,371			(2,386		)	1,110,522
Income (loss) from operations	198,815			42,491			(11,800		)	—			229,506
Other income (expense):
Accretion of discount to the relinquishment liability	(4,974		)	—			—			—			(4,974		)
Interest income	146			2,320			6,064			(2,259		)	6,271
Interest expense, net of capitalized interest	(118,303		)	(44,126		)	(9,980		)	2,259			(170,150		)
Loss on early extinguishment of debt	(11,516		)	—			—			—			(11,516		)
Loss on interests in subsidiaries	(13,834		)	(7,389		)	—			21,223			—
Other expense, net	(8		)	—			(1,587		)	—			(1,595		)
Total other expense	(148,489		)	(49,195		)	(5,503		)	21,223			(181,964		)
Net income (loss)	50,326			(6,704		)	(17,303		)	21,223			47,542
Loss attributable to non-controlling interests	—			—			—			2,784			2,784
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	50,326		$	(6,704	)	$	(17,303	)	$	24,007		$	50,326

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2012
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Net revenues	$	1,079,411		$	321,563		$	285		$	(1,946	)	$	1,399,313
Operating costs and expenses:
Gaming and other operations	643,557			230,263			—			(1,946		)	871,874
Advertising, general and administrative	177,486			33,272			4,582			210			215,550
Depreciation and amortization	68,666			16,364			—			—			85,030
Loss on disposition of assets	68			285			—			—			353
Severance	12,521			—			—			—			12,521
Relinquishment liability reassessment	(11,439		)	—			—			—			(11,439		)
Total operating costs and expenses	890,859			280,184			4,582			(1,736		)	1,173,889
Income (loss) from operations	188,552			41,379			(4,297		)	(210		)	225,424
Accretion of discount to the relinquishment liability	(8,248		)	—			—			—			(8,248		)
Interest expense, net of capitalized interest	(72,520		)	(69,533		)	(4,979		)	975			(146,057		)
Loss on early extinguishment of debt	(14,326		)	—			—			—			(14,326		)
Loss on interests in subsidiaries	(30,498		)	(1,944		)	—			32,442			—
Other income, net	300			1,051			4,072			(975		)	4,448
Net income (loss)	63,260			(29,047		)	(5,204		)	32,232			61,241
Loss attributable to non-controlling interests	—			—			—			2,019			2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	63,260		$	(29,047	)	$	(5,204	)	$	34,251		$	63,260

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Fiscal Year Ended September 30, 2014
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Cash flows provided by (used in) operating activities:
Net loss	$	(24,178	)	$	(27,577	)	$	(30,100	)	$	57,297		$	(24,558	)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:
Depreciation and amortization	65,406			13,814			906			—			80,126
Relinquishment liability reassessment	(1,905		)	—			—			—			(1,905		)
Accretion of discount to the relinquishment liability	2,205			—			—			—			2,205
Cash paid for accretion of discount to the relinquishment liability	(2,897		)	—			—			—			(2,897		)
Loss on early extinguishment of debt	58,245			—			—			—			58,245
Payments of tender offer costs and discounts	(48,155		)	—			—			—			(48,155		)
Amortization of debt issuance costs and accretion of bond discounts	7,719			—			318			—			8,037
Provision for losses on receivables	2,368			390			3,388			—			6,146
Impairment of Project Horizon	4,981			—			—			—			4,981
(Gain) loss on disposition of assets	(12		)	3			—			—			(9		)
(Gain) loss from unconsolidated affiliates	(178		)	—			1,004			—			826
Intercompany transactions	(9,896		)	62,401			4,783			(57,288		)	—
Changes in operating assets and liabilities:
Increase in receivables	(6,622		)	(310		)	(1,783		)	1,556			(7,159		)
Increase in inventories	(411		)	(143		)	—			—			(554		)
(Increase) decrease in other assets	3,236			(77		)	(5,888		)	(802		)	(3,531		)
Increase (decrease) in trade payables	9,858			3,568			(7		)	—			13,419
Decrease in accrued interest	(12,891		)	—			(1,746		)	—			(14,637		)
Increase (decrease) in other liabilities	(4,587		)	(573		)	8,359			(763		)	2,436
Net cash flows provided by (used in) operating activities	42,286			51,496			(20,766		)	—			73,016
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(18,629		)	(4,250		)	(12,200		)	—			(35,079		)
Issuance of third-party loans and advances	—			—			(1,804		)	—			(1,804		)
Payments received on third-party loans	644			—			—			—			644
Decrease in restricted cash, net	53			1,583			12,043			—			13,679
Proceeds from asset sales	104			30			—			—			134
Investments in unconsolidated affiliates	—			—			(29		)	—			(29		)
Intercompany transactions	27,195			(24,222		)	45			(3,018		)	—
Net cash flows provided by (used in) investing activities	9,367			(26,859		)	(1,945		)	(3,018		)	(22,455		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	(393,000		)	—			—			—			(393,000		)
Prior Term Loan Facility repayments, net of discount	(222,103		)	—			—			—			(222,103		)
Senior Secured Credit Facility borrowings - Revolving	310,000			—			—			—			310,000
Senior Secured Credit Facility repayments - Revolving	(273,000		)	—			—			—			(273,000		)
Senior Secured Credit Facility borrowings - Term Loan A, net of discount	124,343			—			—			—			124,343
Senior Secured Credit Facility repayments - Term Loan A	(3,125		)	—			—			—			(3,125		)
Senior Secured Credit Facility borrowings - Term Loan B, net of discount	720,952			—			—			—			720,952
Senior Secured Credit Facility repayments - Term Loan B	(5,475		)	—			—			—			(5,475		)
Line of Credit borrowings	356,796			—			—			—			356,796
Line of Credit repayments	(353,755		)	—			—			—			(353,755		)

Repayments to Mohegan Tribe	—			—			(3,250		)	—		(3,250		)
Repayments of other long-term debt	(212,270		)	—			(53		)	—		(212,323		)
Principal portion of relinquishment liability payments	(46,574		)	—			—			—		(46,574		)
Distributions to Mohegan Tribe	(50,000		)	—			—			—		(50,000		)
Payments of financing fees	(12,395		)	—			—			—		(12,395		)
Payments on capital lease obligations	(2,168		)	(45		)	—			45		(2,168		)
Intercompany transactions	—			(28,480		)	25,507			2,973		—
Net cash flows provided by (used in) financing activities	(61,774		)	(28,525		)	22,204			3,018		(65,077		)
Net decrease in cash and cash equivalents	(10,121		)	(3,888		)	(507		)	—		(14,516		)
Cash and cash equivalents at beginning of year	44,060			18,655			909			—		63,624
Cash and cash equivalents at end of year	$	33,939		$	14,767		$	402		$	—	$	49,108

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2013
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Cash flows provided by (used in) operating activities:
Net income (loss)	$	50,326		$	(6,704	)	$	(17,303	)	$	21,223		$	47,542
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	67,097			13,220			—			—			80,317
Relinquishment liability reassessment	(249		)	—			—			—			(249		)
Accretion of discount to the relinquishment liability	4,974			—			—			—			4,974
Cash paid for accretion of discount to the relinquishment liability	(5,792		)	—			—			—			(5,792		)
Payments of tender offer costs and discounts	(3,104		)	—			—			—			(3,104		)
Loss on early extinguishment of debt	4,531			—			—			—			4,531
Amortization of debt issuance costs and accretion of bond discounts	11,968			—			317			—			12,285
Amortization of net deferred gain on settlement of derivative instruments	(76		)	—			—			—			(76		)
Provision for losses on receivables	951			103			2,382			—			3,436
Loss on disposition of assets	222			19			—			—			241
(Gain) loss from unconsolidated affiliates	(11		)	—			1,564			—			1,553
Intercompany transactions	(30,508		)	49,282			2,449			(21,223		)	—
Changes in operating assets and liabilities:
(Increase) decrease in receivables	495			(1,011		)	(132		)	—			(648		)
Decrease in inventories	326			122			—			—			448
(Increase) decrease in other assets	8,255			41			(5,537		)	—			2,759
Increase (decrease) in trade payables	(2,367		)	265			(41		)	—			(2,143		)
Increase (decrease) in accrued interest	(23,183		)	—			117			—			(23,066		)
Increase (decrease) in other liabilities	(21,440		)	(773		)	2,156			—			(20,057		)
Net cash flows provided by (used in) operating activities	62,415			54,564			(14,028		)	—			102,951
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(24,774		)	(4,481		)	(30,342		)	—			(59,597		)
Issuance of third-party loans and advances	—			—			(2,033		)	—			(2,033		)
Payments received on third-party loans	139			—			—			—			139
(Increase) decrease in restricted cash, net	—			(423		)	33,501			—			33,078
Proceeds from asset sales	208			8			—			—			216
Investments in unconsolidated affiliates	—			—			(4,971		)	—			(4,971		)

Intercompany transactions	24,289			(22,468		)	—			(1,821		)	—
Net cash flows used in investing activities	(138		)	(27,364		)	(3,845		)	(1,821		)	(33,168		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving	3,000			—			—			—			3,000
Prior Bank Credit Facility repayments - Revolving	(3,000		)	—			—			—			(3,000		)
Prior Bank Credit Facility repayments - Term	(4,000		)	—			—			—			(4,000		)
Line of Credit borrowings	24,897			—			—			—			24,897
Line of Credit repayments	(24,897		)	—			—			—			(24,897		)
Repayments to Mohegan Tribe	—			—			(9,950		)	—			(9,950		)
Proceeds from issuance of Senior Unsecured Notes	500,000			—			—			—			500,000
Repayments of other long-term debt	(495,561		)	—			(40		)	—			(495,601		)
Principal portion of relinquishment liability payments	(45,350		)	—			—			—			(45,350		)
Distributions to Mohegan Tribe	(50,000		)	—			—			—			(50,000		)
Payments of financing fees	(11,757		)	—			(200		)	—			(11,957		)
Payments on capital lease obligations	(3,385		)	—			—			—			(3,385		)
Intercompany transactions	—			(30,302		)	28,481			1,821			—
Net cash flows provided by (used in) financing activities	(110,053		)	(30,302		)	18,291			1,821			(120,243		)
Net increase (decrease) in cash and cash equivalents	(47,776		)	(3,102		)	418			—			(50,460		)
Cash and cash equivalents at beginning of year	91,836			21,757			491			—			114,084
Cash and cash equivalents at end of year	$	44,060		$	18,655		$	909		$	—		$	63,624

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2012
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Net cash flows provided by (used in) operating activities	$	122,057		$	59,240		$	(4,300	)	$	—		$	176,997
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(37,523		)	(7,175		)	(2,773		)	—			(47,471		)
(Increase) decrease in restricted cash, net	—			313			(45,544		)	—			(45,231		)
Other cash flows provided by (used in) investing activities	53,718			3,372			(902		)	(54,822		)	1,366
Net cash flows provided by (used in) investing activities	16,195			(3,490		)	(49,219		)	(54,822		)	(91,336		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving	154,000			—			—			—			154,000
Prior Bank Credit Facility repayments - Revolving	(289,000		)	—			—			—			(289,000		)
Prior Bank Credit Facility repayments - Term	(3,000		)	—			—			—			(3,000		)
Prior Term Loan Facility borrowings, net of discount	220,500			—			—			—			220,500
Line of Credit borrowings	225,215			—			—			—			225,215
Line of Credit repayments	(225,215		)	—			—			—			(225,215		)
Borrowings from Mohegan Tribe	—			—			20,600			—			20,600
Repayments of other long-term debt	(66,454		)	—			—			—			(66,454		)
Salishan-Mohegan Bank Credit Facility repayments -Revolving	—			—			(15,250		)	—			(15,250		)
Downs Lodging Credit Facility borrowings - Term	—			—			45,000			—			45,000
Principal portion of relinquishment liability payments	(45,258		)	—			—			—			(45,258		)
Distributions to Mohegan Tribe	(52,950		)	—			—			—			(52,950		)
Payments of financing fees	(50,440		)	—			(1,073		)	—			(51,513		)
Other cash flows provided by (used in) financing activities	(2,832		)	(56,924		)	4,508			54,822			(426		)
Net cash flows provided by (used in) financing activities	(135,434		)	(56,924		)	53,785			54,822			(83,751		)
Net increase (decrease) in cash and cash equivalents	2,818			(1,174		)	266			—			1,910
Cash and cash equivalents at beginning of year	89,018			22,931			225			—			112,174
Cash and cash equivalents at end of year	$	91,836		$	21,757		$	491		$	—		$	114,084

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

XML

MOHEGAN VENTURES-NORTHWEST, LLC (COWLITZ PROJECT) (Details) (Cowlitz Project, USD $) In Millions, unless otherwise specified	1 Months Ended		12 Months Ended
	Jun. 30, 2013 lawsuit	Mar. 31, 2013 lawsuit	Sep. 30, 2014 gaming_machine table_game gaming_facility	Sep. 30, 2013	Dec. 31, 2006 acre
Salishan-Mohegan
Schedule of Long-term Development Projects [Line Items]
Development fee			3.00%
Area of land purchased (in acres)					152
Term of management agreement			7 years
Management fee			24.00%
Number of authorized gaming facilities			2
Number of authorized gaming machines, leasing			975
Number of authorized gaming machines, operation			3,000
Number of authorized table games, operation			125
Annual Rate			10.00%
Number of claims dismissed		2
New claims filed	2
Receivables including accrued interest			$ 56.8	$ 48.0
Allowance for doubtful collection			$ 17.0	$ 14.4
Salishan-Mohegan | Mohegan Ventures-Northwest
Schedule of Long-term Development Projects [Line Items]
Membership or limited partnership interest percentage			49.15%
Salishan-Mohegan | Salishan Company, LLC
Schedule of Long-term Development Projects [Line Items]
Membership or limited partnership interest percentage			40.00%
Salishan-Mohegan | Mohegan Tribe
Schedule of Long-term Development Projects [Line Items]
Membership or limited partnership interest percentage			10.85%
Salishan-Mohegan Two | Salishan-Mohegan
Schedule of Long-term Development Projects [Line Items]
Membership or limited partnership interest percentage			100.00%
Interchange Development Group | Salishan-Mohegan
Schedule of Long-term Development Projects [Line Items]
Membership or limited partnership interest percentage			100.00%

XML

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Reconciliation of long-term receivables and the related reserves for doubtful collection

The following table presents a reconciliation of long-term receivables, including current portions, and the related reserves for doubtful collection of these long-term receivables (in thousands):

	Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013 (1)	$	57,782	$	3,530		$	61,312
Additions:
Issuance of affiliate advances and other loans, including interest receivable	8,814		123			8,937
Deductions:
Payments received	—		(1,041		)	(1,041		)
Balance, September 30, 2014 (1)	$	66,596	$	2,612		$	69,208

__________

(1) Includes interest receivable of $35.7 million and $29.1 million as of September 30, 2014 and 2013, respectively. The WTG receivables no longer accrue interest pursuant to a release and reimbursement agreement entered into in September 2010.

	Reserves for Doubtful Collection of Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013	$	24,189	$	61		$	24,250
Additions:
Charges to bad debt expense	2,644		744			3,388
Deductions:
Adjustments	—		(9		)	(9		)
Balance, September 30, 2014	$	26,833	$	796		$	27,629

Receivables, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Gaming	$	32,789		$	27,369
Hotel	922			1,731
Other	8,574			7,211
Subtotal	42,285			36,311
Less: reserve for doubtful collection	(11,645		)	(10,169		)
Total receivables, net	$	30,640		$	26,142

Estimated useful lives by asset categories

Estimated useful lives by asset categories are as follows:

Buildings and land improvements	40 years
Furniture and equipment	3 - 7 years

Estimated fair value of financing facilities and notes

The estimated fair value of the Authority's financing facilities and notes were as follows (in thousands):

	September 30, 2014
	Carrying Value		Fair Value
Senior Secured Credit Facility - Revolving	$	37,000	$	36,676
Senior Secured Credit Facility - Term Loan A	$	119,789	$	117,304
Senior Secured Credit Facility - Term Loan B	$	716,188	$	710,940
2013 9 3/4% Senior Unsecured Notes	$	500,000	$	505,625
2005 6 7/8% Senior Subordinated Notes	$	9,654	$	9,654
2012 11% Senior Subordinated Notes	$	271,684	$	274,846

Retail value of providing promotional allowances

The retail value of providing promotional allowances was included in revenues as follows (in thousands):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Food and beverage	$	43,264	$	38,390	$	40,925
Hotel	14,721		13,799		14,127
Retail, entertainment and other	40,959		43,668		44,145
Total	$	98,944	$	95,857	$	99,197

Estimated cost of providing promotional allowances

The estimated cost of providing promotional allowances was included in gaming costs and expenses as follows (in thousands):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Food and beverage	$	37,936	$	34,194	$	37,140
Hotel	8,979		7,216		7,754
Retail, entertainment and other	36,772		40,167		40,501
Total	$	83,687	$	81,577	$	85,395

Schedule of accrued severance liability by segment

The following table presents a reconciliation of the related severance liability (in thousands):

	Mohegan Sun
Balance, September 30, 2013	$	1,417
Cash payments	(1,401		)
Balance, September 30, 2014	$	16

XML

LONG-TERM DEBT - Senior Subordinated Notes (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Aug. 15, 2014	Mar. 31, 2012	Aug. 31, 2004	Feb. 28, 2005	Aug. 31, 2013
Debt Instrument [Line Items]
Accrued interest	$ 8,659,000	$ 23,296,000
Senior Subordinated Notes | 2004 7 1/8% Senior Subordinated Notes
Debt Instrument [Line Items]
Loan face amount					225,000,000.0
Note stated interest rate	7.125%	7.125%			7.125%
Principal amount tendered and exchanged				203,800,000
Debt outstanding			21,200,000
Accrued interest		188,000
Senior Subordinated Notes | 2005 6 7/8% Senior Subordinated Notes
Debt Instrument [Line Items]
Loan face amount						150,000,000.0
Note stated interest rate	6.875%	6.875%				6.875%
Principal amount tendered and exchanged				140,300,000
Debt outstanding	9,700,000
Accrued interest	83,000	83,000
Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes
Debt Instrument [Line Items]
Loan face amount				344,200,000.0
Note stated interest rate	11.00%	11.00%		11.00%			11.00%
Accrued interest	1,300,000	1,300,000
Redeemable rate				100.00%
Redeemable rate after cutoff upon change of control				101.00%
Redeemable rate upon certain conditions				100.00%
Payment in Kind (PIK) interest rate				2.00%
Amount of debt repurchased							69,000,000
Principal outstanding	275,200,000
Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes | 2004 Senior Subordinated Notes
Debt Instrument [Line Items]
Principal amount tendered and exchanged				203,800,000
Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes | 2005 Senior Subordinated Notes
Debt Instrument [Line Items]
Principal amount tendered and exchanged				140,300,000
Senior Unsecured Notes | 2012 11 % Senior Subordinated Notes
Debt Instrument [Line Items]
Amount of debt repurchased							$ 69,000,000

XML

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Unconsolidated Affiliates (Details) (Resorts Atlantic City, Mohegan Gaming Advisors)	12 Months Ended
	Sep. 30, 2012
Resorts Atlantic City | Mohegan Gaming Advisors
Entity Information [Line Items]
Membership or limited partnership interest percentage	10.00%

XML

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2010
Property, Plant and Equipment [Line Items]
Impairment of Project Horizon	$ 4,981,000	$ 0	$ 0	$ 58,100,000
Impairment of property and equipment		$ 0
Buildings and land improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	40 years
Furniture and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Furniture and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years

XML

LEASES (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Minimum future rental income
2015	$ 6,608,000
2016	6,187,000
2017	3,943,000
2018	3,370,000
2019	3,026,000
Thereafter	10,002,000
Total	33,136,000
Rental expense	11,400,000	11,000,000	12,600,000
Minimum future rental expense
2015	1,849,000
2016	1,135,000
2017	1,007,000
2018	869,000
2019	868,000
Thereafter	932,000
Total	$ 6,660,000

XML

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION - Introduction (Details)	Sep. 30, 2014
Pocono Downs Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%
Mohegan Basketball Club
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%
Mohegan Golf
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%
Mohegan Ventures-Northwest
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%
Mohegan Ventures Wisconsin
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%
Wisconsin Tribal Gaming
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%
MTGA Gaming
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%

XML

LONG-TERM DEBT - Credit Facilities (Details) (USD $)	1 Months Ended	12 Months Ended
	Nov. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2012	Jul. 31, 2012
Debt Instrument [Line Items]
Accrued interest		$ 8,659,000	$ 23,296,000
Long-term debt, including due to related parties		1,730,936,000	1,682,312,000
Credit Facility | Bank Credit Facility
Debt Instrument [Line Items]
Credit facility outstanding				400,000,000.0
Accrued interest			61,000
Long-term debt, including due to related parties		0	393,000,000
Credit Facility | Term Loan Credit Facility
Debt Instrument [Line Items]
Loan face amount				225,000,000.0
Accrued interest			1,100,000
Long-term debt, including due to related parties		0	221,995,000
Credit Facility | Senior Secured Credit Facilities
Debt Instrument [Line Items]
Loan face amount	955,000,000.0
Accrued interest payable, including commitment fees		212,000
Credit Facility | Senior Secured Credit Facility - Revolving
Debt Instrument [Line Items]
Loan face amount	100,000,000
Credit facility outstanding		0
Debt outstanding		37,000,000
Letters of credit issued		2,900,000
Remaining borrowing capacity		57,100,000
Long-term debt, including due to related parties		37,000,000	0
Credit Facility | Senior Secured Credit Facility - Revolving | Minimum
Debt Instrument [Line Items]
Fee assessed on unused revolving credit	0.375%
Credit Facility | Senior Secured Credit Facility - Revolving | Maximum
Debt Instrument [Line Items]
Fee assessed on unused revolving credit	0.50%
Credit Facility | Senior Secured Credit Facility - Revolving | LIBOR | Minimum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	3.50%
Credit Facility | Senior Secured Credit Facility - Revolving | LIBOR | Maximum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	4.50%
Credit Facility | Senior Secured Credit Facility - Revolving | Base Rate
Debt Instrument [Line Items]
Long-term debt, including due to related parties		14,000,000
Debt instrument, variable rate at period end		3.25%
Basis spread on variable rate		3.50%
Credit Facility | Senior Secured Credit Facility - Revolving | Base Rate | Minimum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	2.50%
Credit Facility | Senior Secured Credit Facility - Revolving | Base Rate | Maximum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	3.50%
Credit Facility | Senior Secured Credit Facility - Revolving | Eurodollar
Debt Instrument [Line Items]
Long-term debt, including due to related parties		23,000,000
Debt instrument, variable rate at period end		0.15%
Basis spread on variable rate		4.50%
Credit Facility | Senior Secured Credit Facility - Revolving | One-Month London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Credit Facility | Senior Secured Credit Facility - Revolving | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Credit Facility | Senior Secured Credit Facility - Term Loan A
Debt Instrument [Line Items]
Loan face amount	125,000,000
Interest rate, year one	5.00%
Interest rate, year two	7.50%
Interest rate, year three	10.00%
Debt outstanding		120,300,000
Long-term debt, including due to related parties		119,789,000	0
Credit Facility | Senior Secured Credit Facility - Term Loan A | LIBOR | Minimum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	3.50%
Credit Facility | Senior Secured Credit Facility - Term Loan A | LIBOR | Maximum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	4.50%
Credit Facility | Senior Secured Credit Facility - Term Loan A | Base Rate | Minimum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	2.50%
Credit Facility | Senior Secured Credit Facility - Term Loan A | Base Rate | Maximum
Debt Instrument [Line Items]
Variable rate, leverage-based margin	3.50%
Credit Facility | Senior Secured Credit Facility - Term Loan A | Eurodollar
Debt Instrument [Line Items]
Debt instrument, variable rate at period end		0.23%
Basis spread on variable rate		4.50%
Credit Facility | Senior Secured Credit Facility - Term Loan A | One-Month London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Credit Facility | Senior Secured Credit Facility - Term Loan A | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Credit Facility | Senior Secured Credit Facility - Term Loan B
Debt Instrument [Line Items]
Loan face amount	730,000,000
Amortization of principal, percentage, annual	1.00%
Debt outstanding		724,500,000
Long-term debt, including due to related parties		716,188,000	0
Credit Facility | Senior Secured Credit Facility - Term Loan B | LIBOR
Debt Instrument [Line Items]
Variable rate, minimum	1.00%
Basis spread on variable rate	4.50%
Credit Facility | Senior Secured Credit Facility - Term Loan B | Base Rate
Debt Instrument [Line Items]
Variable rate, minimum	2.00%
Basis spread on variable rate	3.50%
Credit Facility | Senior Secured Credit Facility - Term Loan B | Eurodollar
Debt Instrument [Line Items]
Debt instrument, variable rate at period end		1.00%
Basis spread on variable rate		4.50%
Credit Facility | Bank of America, N.A. Line of Credit
Debt Instrument [Line Items]
Credit facility outstanding		3,000,000
Borrowing capacity	16,500,000.0
Accrued interest		23,000	0
Long-term debt, including due to related parties		3,041,000	0
Credit Facility | Downs Lodging Credit Facility
Debt Instrument [Line Items]
Long-term debt, including due to related parties		45,000,000	45,000,000
Credit Facility | Downs Lodging Credit Facility | Downs Lodging, LLC
Debt Instrument [Line Items]
Loan face amount					45,000,000.0
Accrued interest		0	0
Note stated interest rate					13.00%
Interest rate due monthly					10.00%
Interest rate due at maturity					3.00%
Exit fee					3.00%
Credit Facility | Letter of Credit | Bank Credit Facility
Debt Instrument [Line Items]
Borrowing capacity				$ 75,000,000.0
Credit Facility | Term Loan A Facility | Senior Secured Credit Facilities | LIBOR
Debt Instrument [Line Items]
Variable rate, measurement period	1 month
Credit Facility | Revolving Credit Facility | Senior Secured Credit Facility - Revolving
Debt Instrument [Line Items]
Fee assessed on unused revolving credit		0.50%

XML

RECEIVABLES, NET

12 Months Ended

Sep. 30, 2014

Receivables [Abstract]

RECEIVABLES, NET

RECEIVABLES, NET:

Receivables, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Gaming	$	32,789		$	27,369
Hotel	922			1,731
Other	8,574			7,211
Subtotal	42,285			36,311
Less: reserve for doubtful collection	(11,645		)	(10,169		)
Total receivables, net	$	30,640		$	26,142

XML

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION - BALANCE SHEETS (Details) (USD $)	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2011
Current assets:
Cash and cash equivalents	$ 49,108,000		$ 63,624,000		$ 114,084,000		$ 112,174,000
Restricted cash	675,000		13,757,000
Receivables, net	30,640,000		26,142,000
Inventories	14,544,000		13,990,000
Other current assets	16,997,000		20,518,000
Total current assets	111,964,000		138,031,000
Non-current assets:
Property and equipment, net	1,424,068,000		1,476,175,000
Goodwill	39,459,000		39,459,000
Other intangible assets, net	405,109,000		405,518,000
Other assets, net	75,360,000		76,967,000
Intercompany receivables	0		0
Investment in subsidiaries	0		0
Total assets	2,055,960,000		2,136,150,000
Current liabilities:
Current portion of long-term debt	29,308,000		25,219,000
Current portion of relinquishment liability	25,194,000		62,947,000
Due to Mohegan Tribe	2,250,000		6,308,000
Current portion of capital leases	793,000		2,302,000
Trade payables	24,086,000		10,531,000
Construction payables	5,832,000		11,011,000
Accrued interest payable	8,659,000		23,296,000
Other current liabilities	127,175,000		123,982,000
Total current liabilities	223,297,000		265,596,000
Non-current liabilities:
Long-term debt, net of current portion	1,675,958,000		1,628,173,000
Relinquishment liability, net of current portion	0		11,418,000
Due to Mohegan Tribe, net of current portion	23,420,000		23,420,000
Capital leases, net of current portion	2,345,000		3,138,000
Other long-term liabilities	6,113,000		5,020,000
Intercompany payables	0		0
Accumulated losses in excess of investment in subsidiaries	0		0
Total liabilities	1,931,133,000		1,936,765,000
Capital:
Retained earnings	125,058,000		199,236,000
Mohegan Tribal Gaming Authority capital	125,058,000		199,236,000
Non-controlling interests	(231,000)		149,000
Total capital	124,827,000		199,385,000		209,263,000		198,724,000
Total liabilities and capital	2,055,960,000		2,136,150,000
Authority
Current assets:
Cash and cash equivalents	33,939,000		44,060,000		91,836,000		89,018,000
Restricted cash	47,000		0
Receivables, net	27,537,000		23,186,000
Inventories	13,339,000		12,928,000
Other current assets	15,559,000		18,125,000
Total current assets	90,421,000		98,299,000
Non-current assets:
Property and equipment, net	1,142,363,000		1,193,676,000
Goodwill	0		0
Other intangible assets, net	120,395,000		120,508,000
Other assets, net	28,625,000		35,159,000
Intercompany receivables	228,122,000		238,545,000
Investment in subsidiaries	325,651,000		332,737,000
Total assets	1,935,577,000		2,018,924,000
Current liabilities:
Current portion of long-term debt	28,893,000		25,156,000
Current portion of relinquishment liability	25,194,000		62,947,000
Due to Mohegan Tribe	0		808,000
Current portion of capital leases	793,000		2,302,000
Trade payables	18,893,000		8,901,000
Construction payables	4,411,000		6,790,000
Accrued interest payable	5,725,000		18,616,000
Other current liabilities	90,684,000		93,377,000
Total current liabilities	174,593,000		218,897,000
Non-current liabilities:
Long-term debt, net of current portion	1,630,958,000		1,582,768,000
Relinquishment liability, net of current portion			11,418,000
Due to Mohegan Tribe, net of current portion	0		0
Capital leases, net of current portion	2,345,000		3,138,000
Other long-term liabilities	2,307,000		2,941,000
Intercompany payables	0		0
Accumulated losses in excess of investment in subsidiaries	0		0
Total liabilities	1,810,203,000		1,819,162,000
Capital:
Retained earnings	125,374,000		199,762,000
Mohegan Tribal Gaming Authority capital	125,374,000		199,762,000
Non-controlling interests	0		0
Total capital	125,374,000		199,762,000
Total liabilities and capital	1,935,577,000		2,018,924,000
Total Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	14,767,000	[1]	18,655,000	[1]	21,757,000	[1]	22,931,000	[1]
Restricted cash	628,000	[1]	1,714,000	[1]
Receivables, net	2,637,000	[1]	2,717,000	[1]
Inventories	1,205,000	[1]	1,062,000	[1]
Other current assets	1,182,000	[1]	1,197,000	[1]
Total current assets	20,419,000	[1]	25,345,000	[1]
Non-current assets:
Property and equipment, net	222,425,000	[1]	225,263,000	[1]
Goodwill	39,459,000	[1]	39,459,000	[1]
Other intangible assets, net	284,714,000	[1]	285,010,000	[1]
Other assets, net	3,970,000	[1]	3,891,000	[1]
Intercompany receivables	65,981,000	[1]	37,149,000	[1]
Investment in subsidiaries	0	[1]	0	[1]
Total assets	636,968,000	[1]	616,117,000	[1]
Current liabilities:
Current portion of long-term debt	0	[1]	0	[1]
Current portion of relinquishment liability	0	[1]	0	[1]
Due to Mohegan Tribe	0	[1]	0	[1]
Current portion of capital leases	58,000	[1]	0	[1]
Trade payables	5,181,000	[1]	1,613,000	[1]
Construction payables	794,000	[1]	558,000	[1]
Accrued interest payable	0	[1]	0	[1]
Other current liabilities	29,504,000	[1]	29,580,000	[1]
Total current liabilities	35,537,000	[1]	31,751,000	[1]
Non-current liabilities:
Long-term debt, net of current portion	0	[1]	0	[1]
Relinquishment liability, net of current portion			0	[1]
Due to Mohegan Tribe, net of current portion	0	[1]	0	[1]
Capital leases, net of current portion	6,111,000	[1]	0	[1]
Other long-term liabilities	0	[1]	0	[1]
Intercompany payables	225,269,000	[1]	236,772,000	[1]
Accumulated losses in excess of investment in subsidiaries	31,680,000	[1]	6,832,000	[1]
Total liabilities	298,597,000	[1]	275,355,000	[1]
Capital:
Retained earnings	338,371,000	[1]	340,762,000	[1]
Mohegan Tribal Gaming Authority capital	338,371,000	[1]	340,762,000	[1]
Non-controlling interests	0	[1]	0	[1]
Total capital	338,371,000	[1]	340,762,000	[1]
Total liabilities and capital	636,968,000	[1]	616,117,000	[1]
Total Non Guarantor Entities
Current assets:
Cash and cash equivalents	402,000	[2]	909,000	[2]	491,000	[2]	225,000	[2]
Restricted cash	0	[2]	12,043,000	[2]
Receivables, net	1,287,000	[2]	239,000	[2]
Inventories	0	[2]	0	[2]
Other current assets	256,000	[2]	1,196,000	[2]
Total current assets	1,945,000	[2]	14,387,000	[2]
Non-current assets:
Property and equipment, net	59,280,000	[2]	57,236,000	[2]
Goodwill	0	[2]	0	[2]
Other intangible assets, net	0	[2]	0	[2]
Other assets, net	49,077,000	[2]	38,127,000	[2]
Intercompany receivables	0	[2]	0	[2]
Investment in subsidiaries	0	[2]	0	[2]
Total assets	110,302,000	[2]	109,750,000	[2]
Current liabilities:
Current portion of long-term debt	415,000	[2]	63,000	[2]
Current portion of relinquishment liability	0	[2]	0	[2]
Due to Mohegan Tribe	2,250,000	[2]	5,500,000	[2]
Current portion of capital leases	0	[2]	0	[2]
Trade payables	12,000	[2]	17,000	[2]
Construction payables	627,000	[2]	3,663,000	[2]
Accrued interest payable	2,934,000	[2]	4,680,000	[2]
Other current liabilities	7,750,000	[2]	1,025,000	[2]
Total current liabilities	13,988,000	[2]	14,948,000	[2]
Non-current liabilities:
Long-term debt, net of current portion	45,000,000	[2]	45,405,000	[2]
Relinquishment liability, net of current portion			0	[2]
Due to Mohegan Tribe, net of current portion	23,420,000	[2]	23,420,000	[2]
Capital leases, net of current portion	0	[2]	0	[2]
Other long-term liabilities	3,806,000	[2]	2,079,000	[2]
Intercompany payables	68,834,000	[2]	38,922,000	[2]
Accumulated losses in excess of investment in subsidiaries	0	[2]	0	[2]
Total liabilities	155,048,000	[2]	124,774,000	[2]
Capital:
Retained earnings	(44,746,000)	[2]	(15,024,000)	[2]
Mohegan Tribal Gaming Authority capital	(44,746,000)	[2]	(15,024,000)	[2]
Non-controlling interests	0	[2]	0	[2]
Total capital	(44,746,000)	[2]	(15,024,000)	[2]
Total liabilities and capital	110,302,000	[2]	109,750,000	[2]
Consolidating/Eliminating Adjustments
Current assets:
Cash and cash equivalents	0		0		0		0
Restricted cash	0		0
Receivables, net	(821,000)		0
Inventories	0		0
Other current assets	0		0
Total current assets	(821,000)		0
Non-current assets:
Property and equipment, net	0		0
Goodwill	0		0
Other intangible assets, net	0		0
Other assets, net	(6,312,000)		(210,000)
Intercompany receivables	(294,103,000)		(275,694,000)
Investment in subsidiaries	(325,651,000)		(332,737,000)
Total assets	(626,887,000)		(608,641,000)
Current liabilities:
Current portion of long-term debt	0		0
Current portion of relinquishment liability	0		0
Due to Mohegan Tribe	0		0
Current portion of capital leases	(58,000)		0
Trade payables	0		0
Construction payables	0		0
Accrued interest payable	0		0
Other current liabilities	(763,000)		0
Total current liabilities	(821,000)		0
Non-current liabilities:
Long-term debt, net of current portion	0		0
Relinquishment liability, net of current portion			0
Due to Mohegan Tribe, net of current portion	0		0
Capital leases, net of current portion	(6,111,000)		0
Other long-term liabilities	0		0
Intercompany payables	(294,103,000)		(275,694,000)
Accumulated losses in excess of investment in subsidiaries	(31,680,000)		(6,832,000)
Total liabilities	(332,715,000)		(282,526,000)
Capital:
Retained earnings	(293,941,000)		(326,264,000)
Mohegan Tribal Gaming Authority capital	(293,941,000)		(326,264,000)
Non-controlling interests	(231,000)		149,000
Total capital	(294,172,000)		(326,115,000)
Total liabilities and capital	$ (626,887,000)		$ (608,641,000)

[1] Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

[2] Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

XML

RECEIVABLES, NET (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	$ 42,285	$ 36,311
Allowance for doubtful accounts	(11,645)	(10,169)
Total receivables, net	30,640	26,142
Gaming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	32,789	27,369
Hotel
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	922	1,731
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	$ 8,574	$ 7,211

XML

LONG-TERM DEBT (Tables)

12 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Schedule of long-term debt

Long-term debt consisted of the following (in thousands, including current maturities):

	September 30, 2014			September 30, 2013
Prior Bank Credit Facility	$	—		$	393,000
Prior Term Loan Facility, net of discount of $3,005	—			221,995
Senior Secured Credit Facility - Revolving, due June 2018	37,000			—
Senior Secured Credit Facility - Term Loan A, due June 2018, net of discount of $523	119,789			—
Senior Secured Credit Facility - Term Loan B, due June 2018, net of discount of $8,337	716,188			—
2009 11 1/2% Second Lien Senior Secured Notes, net of discount of $5	—			195
2012 11 1/2% Second Lien Senior Secured Notes, net of discount of $8,898	—			190,902
2013 9 3/4% Senior Unsecured Notes, due September 2021	500,000			500,000
2004 7 1/8% Senior Subordinated Notes	—			21,156
2005 6 7/8% Senior Subordinated Notes, due February 2015	9,654			9,654
2012 11 % Senior Subordinated Notes, due September 2018, net of discount of $3,506 and $4,168, respectively	271,684			271,022
Line of Credit	3,041			—
2009 Mohegan Tribe Promissory Note, due September 2015	1,750			3,500
2012 Mohegan Tribe Minor's Trust Promissory Note, due March 2017	16,500			18,000
2013 Mohegan Tribe Promissory Note, due December 2018	7,420			7,420
Downs Lodging Credit Facility, due July 2016	45,000			45,000
Other	2,910			468
Long-term debt, excluding capital leases	1,730,936			1,682,312
Less: current portion of long-term debt	(31,558		)	(30,719		)
Long-term debt, net of current portion	$	1,699,378		$	1,651,593

Schedule of maturities of long-term debt

Maturities of long-term debt are as follows (in thousands, including current maturities):

Fiscal Years
2015	$	31,558
2016	70,324
2017	30,105
2018	1,102,620
2019	7,725
Thereafter	500,970
Total	$	1,743,302

XML

OTHER CURRENT ASSETS AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Sep. 30, 2014

Other Current Assets and Other Current Liabilities [Abstract]

Schedule of other current assets and other current liabilities

Other current assets consisted of the following (in thousands):

	September 30, 2014		September 30, 2013
Non-qualified deferred compensation	$	9,809	$	9,832
Prepaid expenses and other miscellaneous current assets	7,188		10,686
Total other current assets	$	16,997	$	20,518

Other current liabilities consisted of the following (in thousands):

	September 30, 2014		September 30, 2013
Accrued payroll and related taxes and benefits	$	35,602	$	36,538
Combined outstanding Slot Win Contribution and free promotional slot play contribution	11,617		12,691
Accrued severance	771		2,395
Amounts due to horsemen	8,109		7,805
Other miscellaneous current liabilities	71,076		64,553
Total other current liabilities	$	127,175	$	123,982

XML

RELINQUISHMENT AGREEMENT (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 1998
RELINQUISHMENT AGREEMENT [Abstract]
Term of relinquishment agreement	15 years
Period following the end of the first three-month period after the relinquishment date upon which senior relinquishment payments start	25 days
Period following the end of the first six-month period after the relinquishment date upon which junior relinquishment payments start	25 days
Relinquishment payment rate as a percent of revenues	2.50%
Relinquishment liability	$ 25,200,000	$ 74,400,000		$ 549,100,000
Relinquishment liability reassessment	1,905,000	249,000	11,439,000
Accretion of discount to the relinquishment liability	2,205,000	4,974,000	8,248,000
Relinquishment Payments [Abstract]
Principal	46,574,000	45,350,000	45,258,000
Accretion of discount	2,897,000	5,792,000	9,028,000
Total relinquishment payments	49,500,000	51,200,000	54,300,000
Accrued relinquishment payments	$ 13,200,000	$ 13,300,000

XML

PROPERTY AND EQUIPMENT, NET (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2010
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	$ 2,453,034,000	$ 2,451,545,000
Accumulated depreciation	(1,028,966,000)	(975,370,000)
Total property and equipment, net	1,424,068,000	1,476,175,000
Depreciation expense	79,600,000	79,800,000	84,500,000
Capitalized interest	735,000	2,000,000	34,000
Impairment of Project Horizon	4,981,000	0	0	58,100,000
Assets anticipated to be utilized under the modified project	4,400,000	9,400,000
Land
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	65,485,000	65,485,000
Land improvements
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	97,146,000	96,735,000
Buildings and improvements
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	1,734,673,000	1,691,924,000
Furniture and equipment
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	547,719,000	541,832,000
Construction in process
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	8,011,000	55,569,000
Conceptual Design Work
Property, Plant and Equipment, Net, by Type [Abstract]
Impairment of Project Horizon				$ 2,000,000

XML

LEASES (Tables)

12 Months Ended

Sep. 30, 2014

Leases [Abstract]

Schedule of future minimum rental payments receivable for operating leases

Minimum future rental income that the Authority expects to earn under non-cancelable leases is as follows (in thousands):

	Fiscal Years Ending September 30,
	2015		2016		2017		2018		2019		Thereafter		Total
Minimum future rental income	$	6,608	$	6,187	$	3,943	$	3,370	$	3,026	$	10,002	$	33,136

Schedule of minimum future rental expense under non-cancelable leases

Minimum future rental expense that the Authority expects to incur under non-cancelable leases is as follows (in thousands):

	Fiscal Years Ending September 30,
	2015		2016		2017		2018		2019		Thereafter		Total
Minimum future rental expense	$	1,849	$	1,135	$	1,007	$	869	$	868	$	932	$	6,660

XML

RELINQUISHMENT AGREEMENT (Tables)

12 Months Ended

Sep. 30, 2014

RELINQUISHMENT AGREEMENT [Abstract]

Relinquishment payments

Relinquishment payments consisted of the following (in millions):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Principal	$	46.6	$	45.4	$	45.3
Accretion of discount	2.9		5.8		9.0
Total	$	49.5	$	51.2	$	54.3

XML

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Authority and its majority and wholly-owned subsidiaries and entities. In accordance with authoritative guidance issued by the Financial Accounting Standards Board (the “FASB”) pertaining to consolidation of variable interest entities, the accounts of Salishan-Mohegan are consolidated into the accounts of Mohegan Ventures-NW, as Mohegan Ventures-NW is deemed to be the primary beneficiary. In consolidation, all inter-company balances and transactions were eliminated.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Authority to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The most significant estimates included in the accompanying consolidated financial statements relate to reserves for doubtful accounts, asset valuation, the liabilities associated with self-insurance, unredeemed Momentum Dollars and relinquishment, contingencies and litigation. Actual results could differ from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of deposits that can be redeemed on demand and investments with original maturities of less than 90 days. Cash equivalents are carried at cost, which approximates market value. Cash and cash equivalents include all operating cash and in-house funds.

Restricted Cash

Restricted cash consists of deposits that are contractually restricted as to their withdrawal or use. As of September 30, 2014, restricted cash primarily includes cash held by Downs Racing pursuant to the Pennsylvania Race Horse Development and Gaming Act and Pennsylvania state statutes. The Pennsylvania Race Horse Development and Gaming Act requires Downs Racing to deposit a percentage of gross revenues from slot machines into a separate interest bearing account for the benefit of horsemen and breeders. In addition, Pennsylvania state statutes require Downs Racing to deposit net amounts received from the sale of lottery tickets into a separate designated account. As of September 30, 2013, restricted cash primarily includes cash held by Downs Lodging which use was restricted to payments for construction expenditures in connection with Project Sunlight, including construction period interest and expenses.

Receivables

Accounts Receivable

Accounts receivable consists primarily of casino receivables, which represent credit extended to approved casino patrons, and hotel and other non-gaming receivables. The Authority maintains a reserve for doubtful collection, which is based on the Authority’s estimate of the probability that these receivables will be collected. The Authority assesses the adequacy of this reserve by continuously evaluating historical experience, creditworthiness of the related patron and all other available information. Future business or economic trends could affect the collectability of these receivables and the related reserve.

Long-Term Receivables

Long-term receivables consist primarily of receivables from affiliates and others.

Receivables from affiliates, which are included in other assets, net, in the accompanying consolidated balance sheets, consist primarily of reimbursable costs and expenses advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe for the Cowlitz Project (refer to Note 12) and WTG on behalf of the Menominee Tribe for the Menominee Project (refer to Note 13). The Salishan-Mohegan receivables are payable upon: (1) the receipt of necessary financing for the development of the proposed casino and (2) the related property being taken into trust by the United States Department of the Interior. Due to the uncertainty in the development of the Cowlitz Project, the Authority maintains a reserve for doubtful collection of the Salishan-Mohegan receivables, which is based on the Authority's estimate of the probability that the receivables will be collected. The Authority assesses the reserve for doubtful collection of the Salishan-Mohegan receivables for adequacy on a quarterly basis. Future developments in the receipt of financing, the relevant land being taken into trust or other matters affecting the Cowlitz Project could affect the collectability of the Salishan-Mohegan receivables and the related reserve. The WTG receivables are fully reserved. The WTG receivables are payable upon the receipt of necessary financing for the development of the proposed casino, subject to certain conditions.

Receivables from others, which are primarily included in other assets, net, in the accompanying consolidated balance sheets, consist primarily of funds loaned to third-parties in connection with various diversification projects. Receivables from others also include a loan to a tenant at Mohegan Sun. The Authority maintains a reserve for doubtful collection of receivables from others, which is based on the Authority's estimate of the probability that these receivables will be collected considering historical experience, creditworthiness of the related third-parties and tenant and all other available information.

The following table presents a reconciliation of long-term receivables, including current portions, and the related reserves for doubtful collection of these long-term receivables (in thousands):

	Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013 (1)	$	57,782	$	3,530		$	61,312
Additions:
Issuance of affiliate advances and other loans, including interest receivable	8,814		123			8,937
Deductions:
Payments received	—		(1,041		)	(1,041		)
Balance, September 30, 2014 (1)	$	66,596	$	2,612		$	69,208

__________

(1) Includes interest receivable of $35.7 million and $29.1 million as of September 30, 2014 and 2013, respectively. The WTG receivables no longer accrue interest pursuant to a release and reimbursement agreement entered into in September 2010.

	Reserves for Doubtful Collection of Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013	$	24,189	$	61		$	24,250
Additions:
Charges to bad debt expense	2,644		744			3,388
Deductions:
Adjustments	—		(9		)	(9		)
Balance, September 30, 2014	$	26,833	$	796		$	27,629

Inventories

Inventories are stated at the lower of cost or market value and consist primarily of food and beverage, retail, hotel and operating supplies. Cost is determined using the average cost method. The Authority reduces the carrying value of slow-moving inventory to net realizable value, based on the Authority’s estimate of the amount of inventory that may not be utilized in future operations. Future business trends could affect the timely use of inventories.

Property and Equipment

Property and equipment are stated at cost. Depreciation is recognized over the estimated useful lives of the assets, other than land, on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Estimated useful lives by asset categories are as follows:

Buildings and land improvements	40 years
Furniture and equipment	3 - 7 years

The costs of significant improvements are capitalized. Costs of normal repairs and maintenance are expensed as incurred. Gains or losses on disposition of property and equipment are reflected in the accompanying consolidated financial statements.

Property and equipment are assessed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If it is determined that the carrying amounts may not be recoverable based on current and future levels of income and cash flows, as well as other factors, an impairment loss will be recognized at such time. During its fourth quarter ended September 30, 2014, the Authority further re-evaluated its plans with respect to the development of the new hotel element of its suspended Project Horizon expansion, which now includes a hotel to be developed and owned by an instrumentality of the Tribe, as well as a third-party developed and owned retail center, and, based on new design plans, including the final location of the planned hotel, the Authority determined that certain design and earthwork related assets did not have any future benefit to the Authority. Accordingly, the Authority recognized a related $5.0 million impairment charge, which was recorded in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014 (refer to Note 4). As of September 30, 2013, the Authority assessed its property and equipment, including assets related to the suspended Project Horizon, for impairment and determined that no impairment existed.

Capitalized Interest

Interest costs incurred in connection with major development and construction projects are capitalized and included in the cost of the related project. Under instances where no debt is directly incurred in connection with a project, interest is capitalized on amounts expended on the project utilizing the weighted-average interest cost of the Authority’s outstanding borrowings. Capitalization of interest ceases when a project is substantially completed or development activity is suspended for an extended period of time.

Goodwill

In accordance with authoritative guidance issued by the FASB pertaining to goodwill, the goodwill associated with the acquisition of the Pennsylvania Facilities is not subject to amortization, but is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of capital expenditures requirements. If the carrying value of the goodwill exceeds its fair value, an impairment loss will be recognized to the extent that the carrying value of the goodwill exceeds its implied fair value. The income approach requires the Authority to make assumptions regarding future revenues and expenses, discount rates and the terminal value based on a market multiple of the Pennsylvania Facilities. As of September 30, 2014 and 2013, the Authority assessed the goodwill for impairment and determined that no impairment existed. If any of the following occurs, the goodwill may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania Facilities are not achieved, (2) if the discount rate increases, (3) if terminal growth rates decrease or (4) if market multiples decrease.

Other Intangible Assets

Intangible assets relate primarily to the Pennsylvania Facilities, Mohegan Sun, MBC and Mohegan Golf.

In connection with the acquisition of the Pennsylvania Facilities, the Authority recorded a slot machine license intangible asset of $214.0 million. In October 2006, a one-time slot machine license fee of $50.0 million was paid to the Pennsylvania Gaming Control Board (the “PGCB”) and added to the existing slot machine license intangible asset. In June 2010, a one-time table game certificate fee of $16.5 million was paid to the PGCB and classified as an intangible asset. The slot machine license and table game certificate intangible assets, with indefinite useful lives, are assessed as a single unit of accounting at least annually for impairment by comparing the fair value of the recorded assets to their carrying value. Their fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of a required rate of return of all other assets and exclusive of capital expenditures requirements. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires the Authority to make assumptions regarding future revenues and expenses, discount rates and the terminal value based on a perpetual growth rate of the Pennsylvania Facilities. As of September 30, 2014 and 2013, the Authority assessed the intangible assets for impairment and determined that no impairment existed. If any of the following occurs, the intangible assets may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania Facilities are not achieved, (2) if the discount rate increases or (3) if the terminal value decreases.

In connection with a relinquishment agreement (refer to Note 11), Trading Cove Associates (“TCA”) granted the Authority an exclusive, irrevocable, perpetual, world-wide and royalty-free license with respect to trademarks and other similar rights, including the “Mohegan Sun” name. The Mohegan Sun trademark intangible asset of $119.7 million is deemed to have an indefinite useful life and is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing the income approach – relief from royalty method based on projected revenues from Mohegan Sun and Mohegan Sun at Pocono Downs. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires the Authority to make assumptions regarding future revenues, discount rates, royalty rate and the terminal value based on a perpetual growth rate of Mohegan Sun and Mohegan Sun at Pocono Downs. As of September 30, 2014 and 2013, the Authority assessed the Mohegan Sun trademark for impairment and determined that no impairment existed. If any of the following occurs, the Mohegan Sun trademark may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from Mohegan Sun and Mohegan Sun at Pocono Downs are not achieved, (2) if the discount rate increases or (3) if the perpetual growth rate decreases.

In connection with the acquisitions of the WNBA franchise and the assets of Pautipaug Country Club Inc., the Authority recorded a franchise value intangible asset and a membership intangible asset, respectively. These intangible assets, with definite useful lives, are assessed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. As of September 30, 2014 and 2013, the Authority assessed these intangible assets for impairment and determined that no impairment existed.

Deferred Financing Costs

Debt issuance costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis, which approximates the effective interest method. Unamortized amounts are included in other assets, net, in the accompanying consolidated balance sheets.

Self-insurance Accruals

The Authority is self-insured up to certain limits for costs associated with workers’ compensation, general liability and employee medical coverage. Insurance claims and reserves include accruals of estimated settlements of known claims, as well as accruals of estimates of incurred but not reported claims. These accruals are included in other current liabilities in the accompanying consolidated balance sheets. In estimating self-insurance accruals, the Authority considers historical loss experiences and expected levels of costs per claim. Claims are accounted for based on estimates of undiscounted claims, including claims incurred but not reported. The Authority believes that this method provides a consistent and effective way to measure these liabilities; however, changes in health care costs, accident frequency and severity and other factors could materially impact estimated liabilities. The Authority continuously monitors estimates and makes adjustments when necessary.

Unredeemed Momentum Dollars

The Authority maintains an accrual for unredeemed Momentum Dollars. This accrual is based on the estimated cost of Momentum Dollars expected to be redeemed as of the respective balance sheet date. The Authority assesses the adequacy of this accrual by periodically evaluating historical redemption experiences and projected trends related to the accrual. Actual results could differ from these estimates.

Base Jackpots

Base jackpots represent the fixed minimum amount of payouts from slot machines for a specific combination. The Authority recognizes base jackpots as reductions to revenues when it becomes obligated to pay such jackpots.

Relinquishment Liability

In accordance with authoritative guidance issued by the FASB pertaining to the accounting for contingencies, the Authority recorded a relinquishment liability based on the estimated present value of its obligations under a relinquishment agreement with TCA (refer to Note 11). The Authority reassesses projected revenues and consequently the relinquishment liability: (1) annually in conjunction with its budgeting process or (2) when necessary to account for material increases or decreases in projected revenues over the relinquishment period. If the reassessment results in an overall increase in projected revenues over the relinquishment period, the relinquishment liability is increased by 5% of such increase in revenues, discounted at the Authority’s risk-free rate of investment, which is an incremental layer. If the reassessment results in an overall decrease to projected revenues over the relinquishment period, the relinquishment liability is decreased by 5% of such decrease in revenues, discounted on the basis of a weighted-average discount rate, which is a decremental layer. The weighted-average discount rate is defined as the average discount rate utilized to discount all previous incremental layers weighted by the amount of each incremental layer. In addition, the Authority recognizes a quarterly accretion to the relinquishment liability to reflect the impact of the time value of money. Since the calculation of this liability requires a high level of estimates and judgments (including those related to projected revenues and impact and timing of future competition), future events that affect such estimates and judgments may cause the actual liability to materially differ from the current estimate.

Fair Value of Financial Instruments

The fair value amounts presented below are reported to satisfy disclosure requirements pursuant to authoritative guidance issued by the FASB pertaining to disclosures about fair values of financial instruments and are not necessarily indicative of amounts that the Authority could realize in a current market transaction.

The Authority applies the following fair value hierarchy, which prioritizes the inputs utilized to measure fair value into three levels:

• Level 1 - Quoted prices for identical assets or liabilities in active markets;

• Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets or valuations based on models where the significant inputs are observable or can be corroborated by observable market data; and

• Level 3 - Valuations based on models where the significant inputs are unobservable. The unobservable inputs reflect the Authority's estimates or assumptions that market participants would utilize in pricing such assets or liabilities.

The Authority's assessment of the significance of a particular input requires judgment and may affect the valuation of financial assets and liabilities and their placement within the fair value hierarchy.

The carrying amount of cash and cash equivalents, receivables, trade payables and promissory notes and certain credit facilities approximates fair value. The estimated fair value of the Authority's financing facilities and notes were as follows (in thousands):

	September 30, 2014
	Carrying Value		Fair Value
Senior Secured Credit Facility - Revolving	$	37,000	$	36,676
Senior Secured Credit Facility - Term Loan A	$	119,789	$	117,304
Senior Secured Credit Facility - Term Loan B	$	716,188	$	710,940
2013 9 3/4% Senior Unsecured Notes	$	500,000	$	505,625
2005 6 7/8% Senior Subordinated Notes	$	9,654	$	9,654
2012 11% Senior Subordinated Notes	$	271,684	$	274,846

The estimated fair values of the Authority's financing facilities and notes were based on Level 2 inputs (quoted market prices or prices of similar instruments) on or about September 30, 2014.

Revenue Recognition

The Authority recognizes gaming revenues as amounts wagered less prizes paid out. Revenues from food and beverage, hotel, retail, entertainment and other services are recognized at the time such service is performed. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rental revenues are recognized in the periods in which the tenants exceed their respective percentage rent thresholds.

Promotional Allowances

The Authority operates a program, without membership fees, for patrons at Mohegan Sun, Mohegan Sun at Pocono Downs and its managed property, Resorts Atlantic City. This program provides complimentary food and beverage, hotel, retail, entertainment and other services to patrons, as applicable, based on Momentum Dollars that are awarded for patrons’ gaming activities. Momentum Dollars may be utilized to purchase, among other things, items at retail stores and restaurants located within Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. Momentum Dollars also may be utilized at The Shops at Mohegan Sun and the Mohegan Sun gasoline and convenience center, as well as to purchase hotel services and tickets to entertainment events held at facilities located at Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. The retail value of these complimentary items is included in gross revenues when redeemed at facilities operated by the Authority and then deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of complimentary items redeemed at third-party outlets is charged to gaming costs and expenses.

In addition, the Authority offers ongoing promotional coupon programs to patrons for the purchase of food and beverage, hotel and retail amenities offered within Mohegan Sun and Mohegan Sun at Pocono Downs, as applicable. The retail value of items or services purchased with coupons at facilities operated by the Authority is included in gross revenues and the respective coupon value is deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of coupons redeemed at third-party outlets is charged to gaming costs and expenses.

The retail value of providing promotional allowances was included in revenues as follows (in thousands):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Food and beverage	$	43,264	$	38,390	$	40,925
Hotel	14,721		13,799		14,127
Retail, entertainment and other	40,959		43,668		44,145
Total	$	98,944	$	95,857	$	99,197

The estimated cost of providing promotional allowances was included in gaming costs and expenses as follows (in thousands):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Food and beverage	$	37,936	$	34,194	$	37,140
Hotel	8,979		7,216		7,754
Retail, entertainment and other	36,772		40,167		40,501
Total	$	83,687	$	81,577	$	85,395

In certain circumstances, the Authority also offers discounts on patron losses and cash inducements at Mohegan Sun and Mohegan Sun at Pocono Downs, which are recognized as reductions to gaming revenues. Reductions to gaming revenues related to discounts provided on patron losses totaled $12.2 million, $11.0 million and $10.7 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Reductions to gaming revenues related to Momentum Dollars redeemed for cash totaled $1.3 million, $1.4 million and $1.1 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

Gaming Costs and Expenses

Gaming costs and expenses primarily include portions of gaming revenues that must be paid to the State of Connecticut and the PGCB. Gaming costs and expenses also include, among other things, payroll costs, expenses associated with the operation of slot machines, table games, poker, live harness racing and racebook, certain marketing expenditures and promotional expenses related to Momentum Dollar and coupon redemptions.

Advertising Costs and Expenses

Production costs are expensed the first time the advertisement takes place. Prepaid rental fees associated with billboard advertisements are capitalized and amortized over the terms of the related rental agreements. Advertising costs and expenses totaled $26.7 million, $28.2 million and $28.2 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, prepaid advertising was $142,000 and $19,000, respectively.

Corporate Costs and Expenses

Corporate costs and expenses represent an allocation of certain governmental and administrative costs, payroll costs, professional fees and various other expenses not directly related to the Authority’s operations at Mohegan Sun or Mohegan Sun at Pocono Downs. In addition, Corporate costs and expenses include costs associated with various gaming diversification efforts, which are expensed as incurred, except when reimbursable by a third-party.

Severance Costs and Expenses

In September 2012, the Authority implemented a workforce reduction of approximately 330 positions in Uncasville, Connecticut, in an effort to further streamline its organization and better align operating costs with current market and business conditions. The costs associated with related post-employment severance benefits were expensed at the time the termination was communicated to the employees. Cash payments commenced in October 2012 and were completed in October 2014. The Authority does not anticipate incurring any additional severance charges in connection with this workforce reduction. The following table presents a reconciliation of the related severance liability (in thousands):

	Mohegan Sun
Balance, September 30, 2013	$	1,417
Cash payments	(1,401		)
Balance, September 30, 2014	$	16

Pre-Opening Costs and Expenses

In accordance with authoritative guidance issued by the FASB pertaining to the reporting on the costs of start-up activities, pre-opening costs and expenses are expensed as incurred.

Investments in Unconsolidated Affiliates

In 2012, the Authority, through its indirect wholly-owned subsidiary, MGA Holding NJ, acquired a 10% ownership interest in Resorts Atlantic City. The Authority's investment in Resorts Atlantic City is accounted for under the equity method as the Authority has significant influence.

Income Taxes

The Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land. Like other sovereign governments, the Tribe and its entities, including the Authority, are not subject to federal, state or local income taxes.

Seasonality

The gaming market in the Northeastern United States is seasonal in nature, with peak gaming activities often occurring at Mohegan Sun and Mohegan Sun at Pocono Downs during the months of May through August. Accordingly, the Authority's operating results for the fiscal year ended September 30, 2014 are not necessarily indicative of operating results for interim periods.

New Accounting Standard

In May 2014, the FASB issued an accounting standard update on revenue recognition that will be applied to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance will be required to be applied on a retrospective basis, using one of two methodologies, and will be effective for annual reporting periods beginning after December 15, 2016, with early application not being permitted. The Authority is currently evaluating the impact that this guidance will have on its financial position and results of operations.

In August 2014, the FASB issued an accounting standard update which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The update requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. It also requires management to provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This guidance will be required for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter, with early application permitted. The Authority is currently evaluating the impact that this guidance will have on its financial position and results of operations.

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SEGMENT REPORTING (Tables)

12 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Financial information related to segments

	For the Fiscal Years Ended
(in thousands)	September 30, 2014			September 30, 2013			September 30, 2012
Net revenues:
Mohegan Sun	$	995,100		$	1,042,078		$	1,084,017
Mohegan Sun at Pocono Downs	296,578			296,648			314,999
Corporate and other	5,391			1,302			297
Inter-segment revenues	(4,351		)	—			—
Total	$	1,292,718		$	1,340,028		$	1,399,313
Income (loss) from operations:
Mohegan Sun	$	181,325		$	212,680		$	199,358
Mohegan Sun at Pocono Downs	36,956			43,763			43,296
Corporate and other	(36,873		)	(26,937		)	(17,230		)
Total	181,408			229,506			225,424
Accretion of discount to the relinquishment liability	(2,205		)	(4,974		)	(8,248		)
Interest income	7,066			6,271			4,492
Interest expense, net of capitalized interest	(147,933		)	(170,150		)	(146,057		)
Loss on early extinguishment of debt	(62,041		)	(11,516		)	(14,326		)
Other expense, net	(853		)	(1,595		)	(44		)
Net income (loss)	(24,558		)	47,542			61,241
Loss attributable to non-controlling interests	380			2,784			2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	50,326		$	63,260

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Capital expenditures incurred:
Mohegan Sun	$	19,518	$	27,652	$	36,542
Mohegan Sun at Pocono Downs	3,946		4,673		3,543
Corporate and other	9,164		33,728		3,557
Total	$	32,628	$	66,053	$	43,642
	September 30, 2014		September 30, 2013
Total assets:
Mohegan Sun	$	1,368,352	$	1,425,152
Mohegan Sun at Pocono Downs	551,655		558,700
Corporate	135,953		152,298
Total	$	2,055,960	$	2,136,150

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Promotional Allowances (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Schedule of Promotional Allowances [Line Items]
Retail value of providing promotional allowances	$ 98,944,000	$ 95,857,000	$ 99,197,000
Cost of providing promotional allowances	83,687,000	81,577,000	85,395,000
Reductions to gaming revenues related to discounts provided on patron losses	12,200,000	11,000,000	10,700,000
Reductions to gaming revenues related to player club points redeemed for cash	1,300,000	1,400,000	1,100,000
Food and beverage
Schedule of Promotional Allowances [Line Items]
Retail value of providing promotional allowances	43,264,000	38,390,000	40,925,000
Cost of providing promotional allowances	37,936,000	34,194,000	37,140,000
Hotel
Schedule of Promotional Allowances [Line Items]
Retail value of providing promotional allowances	14,721,000	13,799,000	14,127,000
Cost of providing promotional allowances	8,979,000	7,216,000	7,754,000
Retail, entertainment, and other
Schedule of Promotional Allowances [Line Items]
Retail value of providing promotional allowances	40,959,000	43,668,000	44,145,000
Cost of providing promotional allowances	$ 36,772,000	$ 40,167,000	$ 40,501,000

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RELATED PARTY TRANSACTIONS (Details) (USD $)	1 Months Ended	12 Months Ended
	Jul. 31, 2008	Sep. 30, 2014 employee	Sep. 30, 2013	Sep. 30, 2012
Related Party Transaction [Line Items]
Distributions to the Tribe		$ 50,000,000	$ 50,000,000	$ 52,950,000
Due to Mohegan Tribe		2,250,000	6,308,000
Bidding threshold established by ordinance		200,000
Acceptable variance in bid from lowest bid for ordinance to apply		5.00%
Mohegan Tribe
Related Party Transaction [Line Items]
Distributions to the Tribe		50,000,000	50,000,000	53,000,000
Incurred interest expense associated with a related party debt		2,300,000	3,000,000	2,500,000
Due to Mohegan Tribe			808,000
Term of lease		25 years
Renewable period of additional term		25 years
Monthly payment amount	75,000
Number of employees affiliated with related party		125
Mohegan Sun
Related Party Transaction [Line Items]
Expenses for services provided to related party		27,100,000	26,800,000	27,000,000
Mohegan Tribal Utility Authority
Related Party Transaction [Line Items]
Utilities purchased from related party		$ 19,300,000	$ 17,800,000	$ 18,700,000

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 49,108	$ 63,624
Restricted cash	675	13,757
Receivables, net	30,640	26,142
Inventories	14,544	13,990
Other current assets	16,997	20,518
Total current assets	111,964	138,031
Non-current assets:
Property and equipment, net	1,424,068	1,476,175
Goodwill	39,459	39,459
Other intangible assets, net	405,109	405,518
Other assets, net	75,360	76,967
Total assets	2,055,960	2,136,150
Current liabilities:
Current portion of long-term debt	29,308	25,219
Current portion of relinquishment liability	25,194	62,947
Due to Mohegan Tribe	2,250	6,308
Current portion of capital leases	793	2,302
Trade payables	24,086	10,531
Construction payables	5,832	11,011
Accrued interest payable	8,659	23,296
Other current liabilities	127,175	123,982
Total current liabilities	223,297	265,596
Non-current liabilities:
Long-term debt, net of current portion	1,675,958	1,628,173
Relinquishment liability, net of current portion	0	11,418
Due to Mohegan Tribe, net of current portion	23,420	23,420
Capital leases, net of current portion	2,345	3,138
Other long-term liabilities	6,113	5,020
Total liabilities	1,931,133	1,936,765
Commitments and Contingencies
Capital:
Retained earnings	125,058	199,236
Mohegan Tribal Gaming Authority capital	125,058	199,236
Non-controlling interests	(231)	149
Total capital	124,827	199,385
Total liabilities and capital	$ 2,055,960	$ 2,136,150

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OTHER CURRENT ASSETS AND OTHER CURRENT LIABILITIES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Other Assets, Current [Abstract]
Non-qualified deferred compensation	$ 9,809	$ 9,832
Prepaid expenses and other miscellaneous current assets	7,188	10,686
Total other current assets	16,997	20,518
Other Liabilities, Current [Abstract]
Accrued payroll and related taxes and benefits	35,602	36,538
Combined outstanding Slot Win Contribution and free promotional slot play contribution	11,617	12,691
Accrued severance	771	2,395
Amounts due to horsemen	8,109	7,805
Other miscellaneous current liabilities	71,076	64,553
Total other current liabilities	$ 127,175	$ 123,982

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Statement of Cash Flows [Abstract]
Increase (decrease) in construction payables	$ (5,179)	$ 5,948	$ (3,829)

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INVESTMENT IN WNBA FRANCHISE (Details) (Mohegan Basketball Club, USD $)	1 Months Ended	12 Months Ended
	Jan. 31, 2003	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
WNBA
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Membership or limited partnership interest percentage		4.20%
Initial player roster
Entity Information [Line Items]
Estimated fair value of intangible asset acquired with membership interest	$ 4,800,000
Useful life of intangible asset acquired with membership interest	7 years
Franchise
Entity Information [Line Items]
Estimated fair value of intangible asset acquired with membership interest	5,500,000
Useful life of intangible asset acquired with membership interest	30 years
Accumulated amortization		2,100,000	2,000,000
Amortization expense		183,000	183,000	183,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Expected amortization expenses, 2015		183,000
Expected amortization expenses, 2016		183,000
Expected amortization expenses, 2017		183,000
Expected amortization expenses, 2018		183,000
Expected amortization expenses, 2019		$ 183,000

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-Term Receivables (Details) (USD $)	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013
Notes, Loans and Financing Receivable, Gross, Noncurrent [Roll Forward]
Balance, beginning of period	$ 61,312,000	[1]
Additions: Issuance of affiliate advances and other loans, including interest receivable	8,937,000
Deductions: Payments received	(1,041,000)
Balance, end of period	69,208,000	[1]
Notes receivable
Notes, Loans and Financing Receivable, Gross, Noncurrent [Roll Forward]
Interest receivable	35,700,000		29,100,000
Affiliates
Notes, Loans and Financing Receivable, Gross, Noncurrent [Roll Forward]
Balance, beginning of period	57,782,000	[1]
Additions: Issuance of affiliate advances and other loans, including interest receivable	8,814,000
Deductions: Payments received	0
Balance, end of period	66,596,000	[1]
Others
Notes, Loans and Financing Receivable, Gross, Noncurrent [Roll Forward]
Balance, beginning of period	3,530,000	[1]
Additions: Issuance of affiliate advances and other loans, including interest receivable	123,000
Deductions: Payments received	(1,041,000)
Balance, end of period	$ 2,612,000	[1]

[1] Includes interest receivable of $35.7 million and $29.1 million as of September 30, 2014 and 2013, respectively. The WTG receivables no longer accrue interest pursuant to a release and reimbursement agreement entered into in September 2010.

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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) (Reserves for uncollectible accounts, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012
Reserves for uncollectible accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balances at Beginning of Year	$ 34,420		$ 30,998		$ 30,737
Charges to Costs and Expenses	6,146		3,436		3,189
Deductions from Reserves	1,930	[1]	14	[1]	2,928	[1]
Balances at End of Year	$ 38,636		$ 34,420		$ 30,998

[1] Deductions from reserves include write-off of uncollectible accounts, net of recoveries of accounts previously written-off.

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SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION

12 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION:

As of September 30, 2014, substantially all of the Authority's outstanding debt is fully and unconditionally guaranteed, on a joint and several basis, by the following 100% owned subsidiaries of the Authority: the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming. Separate financial statements and other disclosures concerning the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming are not presented below because the Authority believes that the summarized financial information provided below and in Note 15 are adequate for investor analysis of these subsidiaries. Condensed consolidating financial statement information for the Authority, its 100% owned guarantor subsidiaries and its non-guarantor subsidiaries and entities as of September 30, 2014 and 2013 and for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows (in thousands):

CONDENSED CONSOLIDATING BALANCE SHEETS

	September 30, 2014
	Authority		Total Guarantor Subsidiaries (1)		Total Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	33,939	$	14,767	$	402		$	—		$	49,108
Restricted cash	47		628		—			—			675
Receivables, net	27,537		2,637		1,287			(821		)	30,640
Inventories	13,339		1,205		—			—			14,544
Other current assets	15,559		1,182		256			—			16,997
Total current assets	90,421		20,419		1,945			(821		)	111,964
Non-current assets:
Property and equipment, net	1,142,363		222,425		59,280			—			1,424,068
Goodwill	—		39,459		—			—			39,459
Other intangible assets, net	120,395		284,714		—			—			405,109
Other assets, net	28,625		3,970		49,077			(6,312		)	75,360
Intercompany receivables	228,122		65,981		—			(294,103		)	—
Investment in subsidiaries	325,651		—		—			(325,651		)	—
Total assets	$	1,935,577	$	636,968	$	110,302		$	(626,887	)	$	2,055,960
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	28,893	$	—	$	415		$	—		$	29,308
Current portion of relinquishment liability	25,194		—		—			—			25,194
Due to Mohegan Tribe	—		—		2,250			—			2,250
Current portion of capital leases	793		58		—			(58		)	793
Trade payables	18,893		5,181		12			—			24,086
Construction payables	4,411		794		627			—			5,832
Accrued interest payable	5,725		—		2,934			—			8,659
Other current liabilities	90,684		29,504		7,750			(763		)	127,175
Total current liabilities	174,593		35,537		13,988			(821		)	223,297
Non-current liabilities:
Long-term debt, net of current portion	1,630,958		—		45,000			—			1,675,958
Due to Mohegan Tribe, net of current portion	—		—		23,420			—			23,420
Capital leases, net of current portion	2,345		6,111		—			(6,111		)	2,345
Other long-term liabilities	2,307		—		3,806			—			6,113
Intercompany payables	—		225,269		68,834			(294,103		)	—
Accumulated losses in excess of investment in subsidiaries	—		31,680		—			(31,680		)	—
Total liabilities	1,810,203		298,597		155,048			(332,715		)	1,931,133
Capital:
Retained earnings	125,374		338,371		(44,746		)	(293,941		)	125,058
Mohegan Tribal Gaming Authority capital	125,374		338,371		(44,746		)	(293,941		)	125,058
Non-controlling interests	—		—		—			(231		)	(231		)
Total capital	125,374		338,371		(44,746		)	(294,172		)	124,827
Total liabilities and capital	$	1,935,577	$	636,968	$	110,302		$	(626,887	)	$	2,055,960

___________

(1)   Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2)   Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	September 30, 2013
	Authority		Total Guarantor Subsidiaries (1)		Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	44,060	$	18,655	$	909		$	—		$	63,624
Restricted cash	—		1,714		12,043			—			13,757
Receivables, net	23,186		2,717		239			—			26,142
Inventories	12,928		1,062		—			—			13,990
Other current assets	18,125		1,197		1,196			—			20,518
Total current assets	98,299		25,345		14,387			—			138,031
Non-current assets:
Property and equipment, net	1,193,676		225,263		57,236			—			1,476,175
Goodwill	—		39,459		—			—			39,459
Other intangible assets, net	120,508		285,010		—			—			405,518
Other assets, net	35,159		3,891		38,127			(210		)	76,967
Intercompany receivables	238,545		37,149		—			(275,694		)	—
Investment in subsidiaries	332,737		—		—			(332,737		)	—
Total assets	$	2,018,924	$	616,117	$	109,750		$	(608,641	)	$	2,136,150
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	25,156	$	—	$	63		$	—		$	25,219
Current portion of relinquishment liability	62,947		—		—			—			62,947
Due to Mohegan Tribe	808		—		5,500			—			6,308
Current portion of capital leases	2,302		—		—			—			2,302
Trade payables	8,901		1,613		17			—			10,531
Construction payables	6,790		558		3,663			—			11,011
Accrued interest payable	18,616		—		4,680			—			23,296
Other current liabilities	93,377		29,580		1,025			—			123,982
Total current liabilities	218,897		31,751		14,948			—			265,596
Non-current liabilities:
Long-term debt, net of current portion	1,582,768		—		45,405			—			1,628,173
Relinquishment liability, net of current portion	11,418		—		—			—			11,418
Due to Mohegan Tribe, net of current portion	—		—		23,420			—			23,420
Capital leases, net of current portion	3,138		—		—			—			3,138
Other long-term liabilities	2,941		—		2,079			—			5,020
Intercompany payables	—		236,772		38,922			(275,694		)	—
Accumulated losses in excess of investment in subsidiaries	—		6,832		—			(6,832		)	—
Total liabilities	1,819,162		275,355		124,774			(282,526		)	1,936,765
Capital:
Retained earnings	199,762		340,762		(15,024		)	(326,264		)	199,236
Mohegan Tribal Gaming Authority capital	199,762		340,762		(15,024		)	(326,264		)	199,236
Non-controlling interests	—		—		—			149			149
Total capital	199,762		340,762		(15,024		)	(326,115		)	199,385
Total liabilities and capital	$	2,018,924	$	616,117	$	109,750		$	(608,641	)	$	2,136,150

___________

(1)   Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2)   Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS)

	For the Fiscal Year Ended September 30, 2014
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Revenues:
Gaming	$	858,780		$	274,783		$	—		$	—		$	1,133,563
Food and beverage	62,273			29,382			—			—			91,655
Hotel	42,921			4,389			—			—			47,310
Retail, entertainment and other	101,506			16,515			5,464			(4,351		)	119,134
Gross revenues	1,065,480			325,069			5,464			(4,351		)	1,391,662
Less-Promotional allowances	(76,618		)	(20,567		)	(17		)	(1,742		)	(98,944		)
Net revenues	988,862			304,502			5,447			(6,093		)	1,292,718
Operating costs and expenses:
Gaming	488,293			198,728			—			—			687,021
Food and beverage	32,348			9,134			—			—			41,482
Hotel	15,287			4,631			—			(4,111		)	15,807
Retail, entertainment and other	45,876			6,780			—			(1,711		)	50,945
Advertising, general and administrative	155,668			35,075			27,927			(28,031		)	190,639
Corporate	13,276			—			—			27,760			41,036
Depreciation and amortization	65,406			13,814			906			—			80,126
(Gain) loss on disposition of assets	(12		)	3			—			—			(9		)
Pre-opening	—			1,187			—			—			1,187
Impairment of Project Horizon	4,981			—			—			—			4,981
Relinquishment liability reassessment	(1,905		)	—			—			—			(1,905		)
Total operating costs and expenses	819,218			269,352			28,833			(6,093		)	1,111,310
Income (loss) from operations	169,644			35,150			(23,386		)	—			181,408
Other income (expense):
Accretion of discount to the relinquishment liability	(2,205		)	—			—			—			(2,205		)
Interest income	88			4,704			7,306			(5,032		)	7,066
Interest expense, net of capitalized interest	(97,380		)	(42,583		)	(13,002		)	5,032			(147,933		)
Loss on early extinguishment of debt	(62,041		)	—			—			—			(62,041		)
Loss on interests in subsidiaries	(32,449		)	(24,848		)	—			57,297			—
Other income (expense), net	165			—			(1,018		)	—			(853		)
Total other expense	(193,822		)	(62,727		)	(6,714		)	57,297			(205,966		)
Net loss	(24,178		)	(27,577		)	(30,100		)	57,297			(24,558		)
Loss attributable to non-controlling interests	—			—			—			380			380
Net loss attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	(27,577	)	$	(30,100	)	$	57,677		$	(24,178	)

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2013
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Revenues:
Gaming	$	911,180		$	279,022		$	—		$	—		$	1,190,202
Food and beverage	59,334			26,917			—			—			86,251
Hotel	40,873			—			—			—			40,873
Retail, entertainment and other	100,545			16,679			1,575			(240		)	118,559
Gross revenues	1,111,932			322,618			1,575			(240		)	1,435,885
Less-Promotional allowances	(76,407		)	(17,300		)	(4		)	(2,146		)	(95,857		)
Net revenues	1,035,525			305,318			1,571			(2,386		)	1,340,028
Operating costs and expenses:
Gaming	507,069			201,860			—			—			708,929
Food and beverage	33,297			8,280			(2		)	—			41,575
Hotel	14,339			—			—			—			14,339
Retail, entertainment and other	40,371			5,589			—			(2,101		)	43,859
Advertising, general and administrative	159,869			32,997			13,373			(13,566		)	192,673
Corporate	14,841			—			—			13,281			28,122
Depreciation and amortization	67,097			13,220			—			—			80,317
Loss on disposition of assets	222			19			—			—			241
Severance	(146		)	175			—			—			29
Pre-opening	—			687			—			—			687
Relinquishment liability reassessment	(249		)	—			—			—			(249		)
Total operating costs and expenses	836,710			262,827			13,371			(2,386		)	1,110,522
Income (loss) from operations	198,815			42,491			(11,800		)	—			229,506
Other income (expense):
Accretion of discount to the relinquishment liability	(4,974		)	—			—			—			(4,974		)
Interest income	146			2,320			6,064			(2,259		)	6,271
Interest expense, net of capitalized interest	(118,303		)	(44,126		)	(9,980		)	2,259			(170,150		)
Loss on early extinguishment of debt	(11,516		)	—			—			—			(11,516		)
Loss on interests in subsidiaries	(13,834		)	(7,389		)	—			21,223			—
Other expense, net	(8		)	—			(1,587		)	—			(1,595		)
Total other expense	(148,489		)	(49,195		)	(5,503		)	21,223			(181,964		)
Net income (loss)	50,326			(6,704		)	(17,303		)	21,223			47,542
Loss attributable to non-controlling interests	—			—			—			2,784			2,784
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	50,326		$	(6,704	)	$	(17,303	)	$	24,007		$	50,326

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2012
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/ Eliminating Adjustments			Consolidated
Net revenues	$	1,079,411		$	321,563		$	285		$	(1,946	)	$	1,399,313
Operating costs and expenses:
Gaming and other operations	643,557			230,263			—			(1,946		)	871,874
Advertising, general and administrative	177,486			33,272			4,582			210			215,550
Depreciation and amortization	68,666			16,364			—			—			85,030
Loss on disposition of assets	68			285			—			—			353
Severance	12,521			—			—			—			12,521
Relinquishment liability reassessment	(11,439		)	—			—			—			(11,439		)
Total operating costs and expenses	890,859			280,184			4,582			(1,736		)	1,173,889
Income (loss) from operations	188,552			41,379			(4,297		)	(210		)	225,424
Accretion of discount to the relinquishment liability	(8,248		)	—			—			—			(8,248		)
Interest expense, net of capitalized interest	(72,520		)	(69,533		)	(4,979		)	975			(146,057		)
Loss on early extinguishment of debt	(14,326		)	—			—			—			(14,326		)
Loss on interests in subsidiaries	(30,498		)	(1,944		)	—			32,442			—
Other income, net	300			1,051			4,072			(975		)	4,448
Net income (loss)	63,260			(29,047		)	(5,204		)	32,232			61,241
Loss attributable to non-controlling interests	—			—			—			2,019			2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	63,260		$	(29,047	)	$	(5,204	)	$	34,251		$	63,260

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Fiscal Year Ended September 30, 2014
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Cash flows provided by (used in) operating activities:
Net loss	$	(24,178	)	$	(27,577	)	$	(30,100	)	$	57,297		$	(24,558	)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:
Depreciation and amortization	65,406			13,814			906			—			80,126
Relinquishment liability reassessment	(1,905		)	—			—			—			(1,905		)
Accretion of discount to the relinquishment liability	2,205			—			—			—			2,205
Cash paid for accretion of discount to the relinquishment liability	(2,897		)	—			—			—			(2,897		)
Loss on early extinguishment of debt	58,245			—			—			—			58,245
Payments of tender offer costs and discounts	(48,155		)	—			—			—			(48,155		)
Amortization of debt issuance costs and accretion of bond discounts	7,719			—			318			—			8,037
Provision for losses on receivables	2,368			390			3,388			—			6,146
Impairment of Project Horizon	4,981			—			—			—			4,981
(Gain) loss on disposition of assets	(12		)	3			—			—			(9		)
(Gain) loss from unconsolidated affiliates	(178		)	—			1,004			—			826
Intercompany transactions	(9,896		)	62,401			4,783			(57,288		)	—
Changes in operating assets and liabilities:
Increase in receivables	(6,622		)	(310		)	(1,783		)	1,556			(7,159		)
Increase in inventories	(411		)	(143		)	—			—			(554		)
(Increase) decrease in other assets	3,236			(77		)	(5,888		)	(802		)	(3,531		)
Increase (decrease) in trade payables	9,858			3,568			(7		)	—			13,419
Decrease in accrued interest	(12,891		)	—			(1,746		)	—			(14,637		)
Increase (decrease) in other liabilities	(4,587		)	(573		)	8,359			(763		)	2,436
Net cash flows provided by (used in) operating activities	42,286			51,496			(20,766		)	—			73,016
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(18,629		)	(4,250		)	(12,200		)	—			(35,079		)
Issuance of third-party loans and advances	—			—			(1,804		)	—			(1,804		)
Payments received on third-party loans	644			—			—			—			644
Decrease in restricted cash, net	53			1,583			12,043			—			13,679
Proceeds from asset sales	104			30			—			—			134
Investments in unconsolidated affiliates	—			—			(29		)	—			(29		)
Intercompany transactions	27,195			(24,222		)	45			(3,018		)	—
Net cash flows provided by (used in) investing activities	9,367			(26,859		)	(1,945		)	(3,018		)	(22,455		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	(393,000		)	—			—			—			(393,000		)
Prior Term Loan Facility repayments, net of discount	(222,103		)	—			—			—			(222,103		)
Senior Secured Credit Facility borrowings - Revolving	310,000			—			—			—			310,000
Senior Secured Credit Facility repayments - Revolving	(273,000		)	—			—			—			(273,000		)
Senior Secured Credit Facility borrowings - Term Loan A, net of discount	124,343			—			—			—			124,343
Senior Secured Credit Facility repayments - Term Loan A	(3,125		)	—			—			—			(3,125		)
Senior Secured Credit Facility borrowings - Term Loan B, net of discount	720,952			—			—			—			720,952
Senior Secured Credit Facility repayments - Term Loan B	(5,475		)	—			—			—			(5,475		)
Line of Credit borrowings	356,796			—			—			—			356,796
Line of Credit repayments	(353,755		)	—			—			—			(353,755		)

Repayments to Mohegan Tribe	—			—			(3,250		)	—		(3,250		)
Repayments of other long-term debt	(212,270		)	—			(53		)	—		(212,323		)
Principal portion of relinquishment liability payments	(46,574		)	—			—			—		(46,574		)
Distributions to Mohegan Tribe	(50,000		)	—			—			—		(50,000		)
Payments of financing fees	(12,395		)	—			—			—		(12,395		)
Payments on capital lease obligations	(2,168		)	(45		)	—			45		(2,168		)
Intercompany transactions	—			(28,480		)	25,507			2,973		—
Net cash flows provided by (used in) financing activities	(61,774		)	(28,525		)	22,204			3,018		(65,077		)
Net decrease in cash and cash equivalents	(10,121		)	(3,888		)	(507		)	—		(14,516		)
Cash and cash equivalents at beginning of year	44,060			18,655			909			—		63,624
Cash and cash equivalents at end of year	$	33,939		$	14,767		$	402		$	—	$	49,108

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2013
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Cash flows provided by (used in) operating activities:
Net income (loss)	$	50,326		$	(6,704	)	$	(17,303	)	$	21,223		$	47,542
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	67,097			13,220			—			—			80,317
Relinquishment liability reassessment	(249		)	—			—			—			(249		)
Accretion of discount to the relinquishment liability	4,974			—			—			—			4,974
Cash paid for accretion of discount to the relinquishment liability	(5,792		)	—			—			—			(5,792		)
Payments of tender offer costs and discounts	(3,104		)	—			—			—			(3,104		)
Loss on early extinguishment of debt	4,531			—			—			—			4,531
Amortization of debt issuance costs and accretion of bond discounts	11,968			—			317			—			12,285
Amortization of net deferred gain on settlement of derivative instruments	(76		)	—			—			—			(76		)
Provision for losses on receivables	951			103			2,382			—			3,436
Loss on disposition of assets	222			19			—			—			241
(Gain) loss from unconsolidated affiliates	(11		)	—			1,564			—			1,553
Intercompany transactions	(30,508		)	49,282			2,449			(21,223		)	—
Changes in operating assets and liabilities:
(Increase) decrease in receivables	495			(1,011		)	(132		)	—			(648		)
Decrease in inventories	326			122			—			—			448
(Increase) decrease in other assets	8,255			41			(5,537		)	—			2,759
Increase (decrease) in trade payables	(2,367		)	265			(41		)	—			(2,143		)
Increase (decrease) in accrued interest	(23,183		)	—			117			—			(23,066		)
Increase (decrease) in other liabilities	(21,440		)	(773		)	2,156			—			(20,057		)
Net cash flows provided by (used in) operating activities	62,415			54,564			(14,028		)	—			102,951
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(24,774		)	(4,481		)	(30,342		)	—			(59,597		)
Issuance of third-party loans and advances	—			—			(2,033		)	—			(2,033		)
Payments received on third-party loans	139			—			—			—			139
(Increase) decrease in restricted cash, net	—			(423		)	33,501			—			33,078
Proceeds from asset sales	208			8			—			—			216
Investments in unconsolidated affiliates	—			—			(4,971		)	—			(4,971		)

Intercompany transactions	24,289			(22,468		)	—			(1,821		)	—
Net cash flows used in investing activities	(138		)	(27,364		)	(3,845		)	(1,821		)	(33,168		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving	3,000			—			—			—			3,000
Prior Bank Credit Facility repayments - Revolving	(3,000		)	—			—			—			(3,000		)
Prior Bank Credit Facility repayments - Term	(4,000		)	—			—			—			(4,000		)
Line of Credit borrowings	24,897			—			—			—			24,897
Line of Credit repayments	(24,897		)	—			—			—			(24,897		)
Repayments to Mohegan Tribe	—			—			(9,950		)	—			(9,950		)
Proceeds from issuance of Senior Unsecured Notes	500,000			—			—			—			500,000
Repayments of other long-term debt	(495,561		)	—			(40		)	—			(495,601		)
Principal portion of relinquishment liability payments	(45,350		)	—			—			—			(45,350		)
Distributions to Mohegan Tribe	(50,000		)	—			—			—			(50,000		)
Payments of financing fees	(11,757		)	—			(200		)	—			(11,957		)
Payments on capital lease obligations	(3,385		)	—			—			—			(3,385		)
Intercompany transactions	—			(30,302		)	28,481			1,821			—
Net cash flows provided by (used in) financing activities	(110,053		)	(30,302		)	18,291			1,821			(120,243		)
Net increase (decrease) in cash and cash equivalents	(47,776		)	(3,102		)	418			—			(50,460		)
Cash and cash equivalents at beginning of year	91,836			21,757			491			—			114,084
Cash and cash equivalents at end of year	$	44,060		$	18,655		$	909		$	—		$	63,624

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

	For the Fiscal Year Ended September 30, 2012
	Authority			Total Guarantor Subsidiaries (1)			Total  Non-Guarantor Subsidiaries and Entities (2)			Consolidating/   Eliminating   Adjustments			Consolidated
Net cash flows provided by (used in) operating activities	$	122,057		$	59,240		$	(4,300	)	$	—		$	176,997
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(37,523		)	(7,175		)	(2,773		)	—			(47,471		)
(Increase) decrease in restricted cash, net	—			313			(45,544		)	—			(45,231		)
Other cash flows provided by (used in) investing activities	53,718			3,372			(902		)	(54,822		)	1,366
Net cash flows provided by (used in) investing activities	16,195			(3,490		)	(49,219		)	(54,822		)	(91,336		)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving	154,000			—			—			—			154,000
Prior Bank Credit Facility repayments - Revolving	(289,000		)	—			—			—			(289,000		)
Prior Bank Credit Facility repayments - Term	(3,000		)	—			—			—			(3,000		)
Prior Term Loan Facility borrowings, net of discount	220,500			—			—			—			220,500
Line of Credit borrowings	225,215			—			—			—			225,215
Line of Credit repayments	(225,215		)	—			—			—			(225,215		)
Borrowings from Mohegan Tribe	—			—			20,600			—			20,600
Repayments of other long-term debt	(66,454		)	—			—			—			(66,454		)
Salishan-Mohegan Bank Credit Facility repayments -Revolving	—			—			(15,250		)	—			(15,250		)
Downs Lodging Credit Facility borrowings - Term	—			—			45,000			—			45,000
Principal portion of relinquishment liability payments	(45,258		)	—			—			—			(45,258		)
Distributions to Mohegan Tribe	(52,950		)	—			—			—			(52,950		)
Payments of financing fees	(50,440		)	—			(1,073		)	—			(51,513		)
Other cash flows provided by (used in) financing activities	(2,832		)	(56,924		)	4,508			54,822			(426		)
Net cash flows provided by (used in) financing activities	(135,434		)	(56,924		)	53,785			54,822			(83,751		)
Net increase (decrease) in cash and cash equivalents	2,818			(1,174		)	266			—			1,910
Cash and cash equivalents at beginning of year	89,018			22,931			225			—			112,174
Cash and cash equivalents at end of year	$	91,836		$	21,757		$	491		$	—		$	114,084

___________

(1) Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

(2) Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reserves For Doubtful Collection of Long-term Receivables (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	$ 24,250
Additions: Charges to bad debt expense	3,388
Deductions: Adjustments	(9)
Balance, end of period	27,629
Affiliates
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	24,189
Additions: Charges to bad debt expense	2,644
Deductions: Adjustments	0
Balance, end of period	26,833
Others
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	61
Additions: Charges to bad debt expense	744
Deductions: Adjustments	(9)
Balance, end of period	$ 796

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Authority and its majority and wholly-owned subsidiaries and entities. In accordance with authoritative guidance issued by the Financial Accounting Standards Board (the “FASB”) pertaining to consolidation of variable interest entities, the accounts of Salishan-Mohegan are consolidated into the accounts of Mohegan Ventures-NW, as Mohegan Ventures-NW is deemed to be the primary beneficiary. In consolidation, all inter-company balances and transactions were eliminated.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Authority to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The most significant estimates included in the accompanying consolidated financial statements relate to reserves for doubtful accounts, asset valuation, the liabilities associated with self-insurance, unredeemed Momentum Dollars and relinquishment, contingencies and litigation. Actual results could differ from these estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist of deposits that can be redeemed on demand and investments with original maturities of less than 90 days. Cash equivalents are carried at cost, which approximates market value. Cash and cash equivalents include all operating cash and in-house funds.

Restricted Cash

Restricted Cash

Restricted cash consists of deposits that are contractually restricted as to their withdrawal or use. As of September 30, 2014, restricted cash primarily includes cash held by Downs Racing pursuant to the Pennsylvania Race Horse Development and Gaming Act and Pennsylvania state statutes. The Pennsylvania Race Horse Development and Gaming Act requires Downs Racing to deposit a percentage of gross revenues from slot machines into a separate interest bearing account for the benefit of horsemen and breeders. In addition, Pennsylvania state statutes require Downs Racing to deposit net amounts received from the sale of lottery tickets into a separate designated account. As of September 30, 2013, restricted cash primarily includes cash held by Downs Lodging which use was restricted to payments for construction expenditures in connection with Project Sunlight, including construction period interest and expenses.

Accounts Receivable

Accounts Receivable

Accounts receivable consists primarily of casino receivables, which represent credit extended to approved casino patrons, and hotel and other non-gaming receivables. The Authority maintains a reserve for doubtful collection, which is based on the Authority’s estimate of the probability that these receivables will be collected. The Authority assesses the adequacy of this reserve by continuously evaluating historical experience, creditworthiness of the related patron and all other available information. Future business or economic trends could affect the collectability of these receivables and the related reserve.

Long-term Receivables

Long-Term Receivables

Long-term receivables consist primarily of receivables from affiliates and others.

Receivables from affiliates, which are included in other assets, net, in the accompanying consolidated balance sheets, consist primarily of reimbursable costs and expenses advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe for the Cowlitz Project (refer to Note 12) and WTG on behalf of the Menominee Tribe for the Menominee Project (refer to Note 13). The Salishan-Mohegan receivables are payable upon: (1) the receipt of necessary financing for the development of the proposed casino and (2) the related property being taken into trust by the United States Department of the Interior. Due to the uncertainty in the development of the Cowlitz Project, the Authority maintains a reserve for doubtful collection of the Salishan-Mohegan receivables, which is based on the Authority's estimate of the probability that the receivables will be collected. The Authority assesses the reserve for doubtful collection of the Salishan-Mohegan receivables for adequacy on a quarterly basis. Future developments in the receipt of financing, the relevant land being taken into trust or other matters affecting the Cowlitz Project could affect the collectability of the Salishan-Mohegan receivables and the related reserve. The WTG receivables are fully reserved. The WTG receivables are payable upon the receipt of necessary financing for the development of the proposed casino, subject to certain conditions.

Receivables from others, which are primarily included in other assets, net, in the accompanying consolidated balance sheets, consist primarily of funds loaned to third-parties in connection with various diversification projects. Receivables from others also include a loan to a tenant at Mohegan Sun. The Authority maintains a reserve for doubtful collection of receivables from others, which is based on the Authority's estimate of the probability that these receivables will be collected considering historical experience, creditworthiness of the related third-parties and tenant and all other available information.

Inventories

Inventories

Inventories are stated at the lower of cost or market value and consist primarily of food and beverage, retail, hotel and operating supplies. Cost is determined using the average cost method. The Authority reduces the carrying value of slow-moving inventory to net realizable value, based on the Authority’s estimate of the amount of inventory that may not be utilized in future operations. Future business trends could affect the timely use of inventories.

Property and Equipment and Capitalized Interest

Property and Equipment

Property and equipment are stated at cost. Depreciation is recognized over the estimated useful lives of the assets, other than land, on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Estimated useful lives by asset categories are as follows:

Buildings and land improvements	40 years
Furniture and equipment	3 - 7 years

The costs of significant improvements are capitalized. Costs of normal repairs and maintenance are expensed as incurred. Gains or losses on disposition of property and equipment are reflected in the accompanying consolidated financial statements.

Property and equipment are assessed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If it is determined that the carrying amounts may not be recoverable based on current and future levels of income and cash flows, as well as other factors, an impairment loss will be recognized at such time. During its fourth quarter ended September 30, 2014, the Authority further re-evaluated its plans with respect to the development of the new hotel element of its suspended Project Horizon expansion, which now includes a hotel to be developed and owned by an instrumentality of the Tribe, as well as a third-party developed and owned retail center, and, based on new design plans, including the final location of the planned hotel, the Authority determined that certain design and earthwork related assets did not have any future benefit to the Authority. Accordingly, the Authority recognized a related $5.0 million impairment charge, which was recorded in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014 (refer to Note 4). As of September 30, 2013, the Authority assessed its property and equipment, including assets related to the suspended Project Horizon, for impairment and determined that no impairment existed.

Capitalized Interest

Interest costs incurred in connection with major development and construction projects are capitalized and included in the cost of the related project. Under instances where no debt is directly incurred in connection with a project, interest is capitalized on amounts expended on the project utilizing the weighted-average interest cost of the Authority’s outstanding borrowings. Capitalization of interest ceases when a project is substantially completed or development activity is suspended for an extended period of time.

Goodwill

Goodwill

In accordance with authoritative guidance issued by the FASB pertaining to goodwill, the goodwill associated with the acquisition of the Pennsylvania Facilities is not subject to amortization, but is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of capital expenditures requirements. If the carrying value of the goodwill exceeds its fair value, an impairment loss will be recognized to the extent that the carrying value of the goodwill exceeds its implied fair value. The income approach requires the Authority to make assumptions regarding future revenues and expenses, discount rates and the terminal value based on a market multiple of the Pennsylvania Facilities. As of September 30, 2014 and 2013, the Authority assessed the goodwill for impairment and determined that no impairment existed. If any of the following occurs, the goodwill may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania Facilities are not achieved, (2) if the discount rate increases, (3) if terminal growth rates decrease or (4) if market multiples decrease.

Other Intangible Assets

Other Intangible Assets

Intangible assets relate primarily to the Pennsylvania Facilities, Mohegan Sun, MBC and Mohegan Golf.

In connection with the acquisition of the Pennsylvania Facilities, the Authority recorded a slot machine license intangible asset of $214.0 million. In October 2006, a one-time slot machine license fee of $50.0 million was paid to the Pennsylvania Gaming Control Board (the “PGCB”) and added to the existing slot machine license intangible asset. In June 2010, a one-time table game certificate fee of $16.5 million was paid to the PGCB and classified as an intangible asset. The slot machine license and table game certificate intangible assets, with indefinite useful lives, are assessed as a single unit of accounting at least annually for impairment by comparing the fair value of the recorded assets to their carrying value. Their fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of a required rate of return of all other assets and exclusive of capital expenditures requirements. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires the Authority to make assumptions regarding future revenues and expenses, discount rates and the terminal value based on a perpetual growth rate of the Pennsylvania Facilities. As of September 30, 2014 and 2013, the Authority assessed the intangible assets for impairment and determined that no impairment existed. If any of the following occurs, the intangible assets may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from the Pennsylvania Facilities are not achieved, (2) if the discount rate increases or (3) if the terminal value decreases.

In connection with a relinquishment agreement (refer to Note 11), Trading Cove Associates (“TCA”) granted the Authority an exclusive, irrevocable, perpetual, world-wide and royalty-free license with respect to trademarks and other similar rights, including the “Mohegan Sun” name. The Mohegan Sun trademark intangible asset of $119.7 million is deemed to have an indefinite useful life and is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing the income approach – relief from royalty method based on projected revenues from Mohegan Sun and Mohegan Sun at Pocono Downs. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The income approach requires the Authority to make assumptions regarding future revenues, discount rates, royalty rate and the terminal value based on a perpetual growth rate of Mohegan Sun and Mohegan Sun at Pocono Downs. As of September 30, 2014 and 2013, the Authority assessed the Mohegan Sun trademark for impairment and determined that no impairment existed. If any of the following occurs, the Mohegan Sun trademark may be impaired and subject to a non-cash write-down in a future period, which could have a material adverse impact on the accompanying consolidated financial statements: (1) if estimates of projected cash flows from Mohegan Sun and Mohegan Sun at Pocono Downs are not achieved, (2) if the discount rate increases or (3) if the perpetual growth rate decreases.

In connection with the acquisitions of the WNBA franchise and the assets of Pautipaug Country Club Inc., the Authority recorded a franchise value intangible asset and a membership intangible asset, respectively. These intangible assets, with definite useful lives, are assessed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

Deferred Financing Costs

Deferred Financing Costs

Debt issuance costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis, which approximates the effective interest method. Unamortized amounts are included in other assets, net, in the accompanying consolidated balance sheets.

Self-insurance Accruals

Self-insurance Accruals

The Authority is self-insured up to certain limits for costs associated with workers’ compensation, general liability and employee medical coverage. Insurance claims and reserves include accruals of estimated settlements of known claims, as well as accruals of estimates of incurred but not reported claims. These accruals are included in other current liabilities in the accompanying consolidated balance sheets. In estimating self-insurance accruals, the Authority considers historical loss experiences and expected levels of costs per claim. Claims are accounted for based on estimates of undiscounted claims, including claims incurred but not reported. The Authority believes that this method provides a consistent and effective way to measure these liabilities; however, changes in health care costs, accident frequency and severity and other factors could materially impact estimated liabilities. The Authority continuously monitors estimates and makes adjustments when necessary.

Unredeemed Momentum Dollars

Unredeemed Momentum Dollars

The Authority maintains an accrual for unredeemed Momentum Dollars. This accrual is based on the estimated cost of Momentum Dollars expected to be redeemed as of the respective balance sheet date. The Authority assesses the adequacy of this accrual by periodically evaluating historical redemption experiences and projected trends related to the accrual. Actual results could differ from these estimates.

Base Jackpots

Base Jackpots

Base jackpots represent the fixed minimum amount of payouts from slot machines for a specific combination. The Authority recognizes base jackpots as reductions to revenues when it becomes obligated to pay such jackpots.

Relinquishment Liability

Relinquishment Liability

In accordance with authoritative guidance issued by the FASB pertaining to the accounting for contingencies, the Authority recorded a relinquishment liability based on the estimated present value of its obligations under a relinquishment agreement with TCA (refer to Note 11). The Authority reassesses projected revenues and consequently the relinquishment liability: (1) annually in conjunction with its budgeting process or (2) when necessary to account for material increases or decreases in projected revenues over the relinquishment period. If the reassessment results in an overall increase in projected revenues over the relinquishment period, the relinquishment liability is increased by 5% of such increase in revenues, discounted at the Authority’s risk-free rate of investment, which is an incremental layer. If the reassessment results in an overall decrease to projected revenues over the relinquishment period, the relinquishment liability is decreased by 5% of such decrease in revenues, discounted on the basis of a weighted-average discount rate, which is a decremental layer. The weighted-average discount rate is defined as the average discount rate utilized to discount all previous incremental layers weighted by the amount of each incremental layer. In addition, the Authority recognizes a quarterly accretion to the relinquishment liability to reflect the impact of the time value of money. Since the calculation of this liability requires a high level of estimates and judgments (including those related to projected revenues and impact and timing of future competition), future events that affect such estimates and judgments may cause the actual liability to materially differ from the current estimate.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The fair value amounts presented below are reported to satisfy disclosure requirements pursuant to authoritative guidance issued by the FASB pertaining to disclosures about fair values of financial instruments and are not necessarily indicative of amounts that the Authority could realize in a current market transaction.

The Authority applies the following fair value hierarchy, which prioritizes the inputs utilized to measure fair value into three levels:

• Level 1 - Quoted prices for identical assets or liabilities in active markets;

• Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets or valuations based on models where the significant inputs are observable or can be corroborated by observable market data; and

• Level 3 - Valuations based on models where the significant inputs are unobservable. The unobservable inputs reflect the Authority's estimates or assumptions that market participants would utilize in pricing such assets or liabilities.

The Authority's assessment of the significance of a particular input requires judgment and may affect the valuation of financial assets and liabilities and their placement within the fair value hierarchy.

Revenue Recognition

Revenue Recognition

The Authority recognizes gaming revenues as amounts wagered less prizes paid out. Revenues from food and beverage, hotel, retail, entertainment and other services are recognized at the time such service is performed. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rental revenues are recognized in the periods in which the tenants exceed their respective percentage rent thresholds.

Promotional Allowances

Promotional Allowances

The Authority operates a program, without membership fees, for patrons at Mohegan Sun, Mohegan Sun at Pocono Downs and its managed property, Resorts Atlantic City. This program provides complimentary food and beverage, hotel, retail, entertainment and other services to patrons, as applicable, based on Momentum Dollars that are awarded for patrons’ gaming activities. Momentum Dollars may be utilized to purchase, among other things, items at retail stores and restaurants located within Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. Momentum Dollars also may be utilized at The Shops at Mohegan Sun and the Mohegan Sun gasoline and convenience center, as well as to purchase hotel services and tickets to entertainment events held at facilities located at Mohegan Sun, Mohegan Sun at Pocono Downs and Resorts Atlantic City. The retail value of these complimentary items is included in gross revenues when redeemed at facilities operated by the Authority and then deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of complimentary items redeemed at third-party outlets is charged to gaming costs and expenses.

In addition, the Authority offers ongoing promotional coupon programs to patrons for the purchase of food and beverage, hotel and retail amenities offered within Mohegan Sun and Mohegan Sun at Pocono Downs, as applicable. The retail value of items or services purchased with coupons at facilities operated by the Authority is included in gross revenues and the respective coupon value is deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third parties for the value of coupons redeemed at third-party outlets is charged to gaming costs and expenses.

Gaming Costs and Expenses

Gaming Costs and Expenses

Gaming costs and expenses primarily include portions of gaming revenues that must be paid to the State of Connecticut and the PGCB. Gaming costs and expenses also include, among other things, payroll costs, expenses associated with the operation of slot machines, table games, poker, live harness racing and racebook, certain marketing expenditures and promotional expenses related to Momentum Dollar and coupon redemptions.

Advertising Costs and Expenses

Advertising Costs and Expenses

Production costs are expensed the first time the advertisement takes place. Prepaid rental fees associated with billboard advertisements are capitalized and amortized over the terms of the related rental agreements.

Corporate Costs and Expenses

Corporate Costs and Expenses

Corporate costs and expenses represent an allocation of certain governmental and administrative costs, payroll costs, professional fees and various other expenses not directly related to the Authority’s operations at Mohegan Sun or Mohegan Sun at Pocono Downs. In addition, Corporate costs and expenses include costs associated with various gaming diversification efforts, which are expensed as incurred, except when reimbursable by a third-party.

Severance Costs and Expenses

Severance Costs and Expenses

In September 2012, the Authority implemented a workforce reduction of approximately 330 positions in Uncasville, Connecticut, in an effort to further streamline its organization and better align operating costs with current market and business conditions. The costs associated with related post-employment severance benefits were expensed at the time the termination was communicated to the employees. Cash payments commenced in October 2012 and were completed in October 2014. The Authority does not anticipate incurring any additional severance charges in connection with this workforce reduction.

Pre-Opening Costs and Expenses

Pre-Opening Costs and Expenses

In accordance with authoritative guidance issued by the FASB pertaining to the reporting on the costs of start-up activities, pre-opening costs and expenses are expensed as incurred.

Investments in Unconsolidated Affiliates

The Authority's investment in Resorts Atlantic City is accounted for under the equity method as the Authority has significant influence.

Income Taxes

Income Taxes

The Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land. Like other sovereign governments, the Tribe and its entities, including the Authority, are not subject to federal, state or local income taxes.

Seasonality

Seasonality

The gaming market in the Northeastern United States is seasonal in nature, with peak gaming activities often occurring at Mohegan Sun and Mohegan Sun at Pocono Downs during the months of May through August. Accordingly, the Authority's operating results for the fiscal year ended September 30, 2014 are not necessarily indicative of operating results for interim periods.

New Accounting Standard

New Accounting Standard

In May 2014, the FASB issued an accounting standard update on revenue recognition that will be applied to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance will be required to be applied on a retrospective basis, using one of two methodologies, and will be effective for annual reporting periods beginning after December 15, 2016, with early application not being permitted. The Authority is currently evaluating the impact that this guidance will have on its financial position and results of operations.

In August 2014, the FASB issued an accounting standard update which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The update requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. It also requires management to provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This guidance will be required for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter, with early application permitted. The Authority is currently evaluating the impact that this guidance will have on its financial position and results of operations.

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ORGANIZATION

12 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION:

The Mohegan Tribe of Indians of Connecticut (the “Mohegan Tribe” or the “Tribe”) established the Mohegan Tribal Gaming Authority (the “Authority”) in July 1995 with the exclusive authority to conduct and regulate gaming activities for the Tribe on Tribal lands and the non-exclusive authority to conduct such activities elsewhere. The Tribe is a federally-recognized Indian tribe with an approximately 544-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. Under the Indian Gaming Regulatory Act of 1988 ("IGRA"), federally-recognized Indian tribes are permitted to conduct full-scale casino gaming operations on tribal lands, subject to, among other things, the negotiation of a compact with the affected state. The Tribe and the State of Connecticut entered into a compact (the “Mohegan Compact”), which was approved by the United States Secretary of the Interior. The Authority is primarily engaged in the ownership, operation and development of gaming facilities. In October 1996, the Authority opened Mohegan Sun, a gaming and entertainment complex situated on a 185-acre site on the Tribe's reservation. The Authority is governed by a nine-member Management Board, whose members also comprise the Mohegan Tribal Council, the governing body of the Tribe. Any change in the composition of the Mohegan Tribal Council results in a corresponding change in the Authority's Management Board.

As of September 30, 2014, the following subsidiaries were wholly-owned by the Authority: Mohegan Basketball Club, LLC (“MBC”), Mohegan Golf, LLC (“Mohegan Golf”), Mohegan Commercial Ventures-PA, LLC (“MCV-PA”), Mohegan Ventures-Northwest, LLC (“Mohegan Ventures-NW”), Mohegan Ventures Wisconsin, LLC (“MVW”), MTGA Gaming, LLC (“MTGA Gaming”), Downs Lodging, LLC ("Downs Lodging") and Mohegan Gaming Advisors, LLC ("Mohegan Gaming Advisors").

MBC owns and operates the Connecticut Sun, a professional basketball team in the Women's National Basketball Association (the “WNBA”). MBC currently owns a 4.2% membership interest in WNBA, LLC.

Mohegan Golf owns and operates the Mohegan Sun Golf Club in Southeastern Connecticut.

MCV-PA holds a 0.01% general partnership interest in each of Downs Racing, L.P., Backside, L.P., Mill Creek Land, L.P. and Northeast Concessions, L.P. (collectively, along with MCV-PA, the “Pocono Downs Subsidiaries”), while the Authority holds the remaining 99.99% limited partnership interest in each entity. Downs Racing, L.P. (“Downs Racing”) owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility situated on a 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania (collectively, the “Pennsylvania Facilities”). The Authority views Mohegan Sun and the Pennsylvania Facilities as two separate operating segments.

Mohegan Ventures-NW and a subsidiary of the Tribe hold 49.15% and 10.85% membership interests in Salishan-Mohegan, LLC (“Salishan-Mohegan”), respectively. Salishan-Mohegan was formed with an unrelated third-party to participate in the development and management of a proposed casino to be owned by the federally-recognized Cowlitz Indian Tribe of Washington (the “Cowlitz Tribe”) and to be located in Clark County, Washington (the “Cowlitz Project”). Salishan-Mohegan holds 100% membership interests in Salishan-Mohegan Two, LLC ("Salishan-Mohegan Two") and Interchange Development Group, LLC ("Interchange Development Group"), both of which were formed to acquire certain property related to the Cowlitz Project.

MVW holds a 100% membership interest in Wisconsin Tribal Gaming, LLC (“WTG”), which was formed to participate in the development of a proposed casino to be owned by the federally-recognized Menominee Indian Tribe of Wisconsin (the “Menominee Tribe”) and to be located in Kenosha, Wisconsin (the “Menominee Project”).

MTGA Gaming holds a 100% membership interest in Mohegan Gaming & Hospitality, LLC (“MG&H”), an unrestricted subsidiary of the Authority. MG&H holds a 100% membership interest in Mohegan Resorts, LLC (“Mohegan Resorts”). Mohegan Resorts holds a 100% membership interest in Mohegan Resorts Mass, LLC, which was formed to pursue potential gaming opportunities in the Commonwealth of Massachusetts. Mohegan Resorts also holds 100% membership interests in Mohegan Resorts New York, LLC and Mohegan Gaming New York, LLC (collectively, the “Mohegan New York Entities”). The Mohegan New York Entities were formed to pursue potential gaming opportunities in the State of New York.

Downs Lodging, an unrestricted subsidiary of the Authority, was formed to develop, finance and build Project Sunlight, a hotel and convention center located at Mohegan Sun at Pocono Downs.

Mohegan Gaming Advisors, an unrestricted subsidiary of the Authority, was formed to pursue gaming opportunities outside the State of Connecticut, including management contracts and consulting agreements for casino and entertainment properties in the United States. Mohegan Gaming Advisors holds 100% membership interests in MGA Holding NJ, LLC ("MGA Holding NJ") and MGA Gaming NJ, LLC (collectively, the "Mohegan New Jersey Entities"). The Mohegan New Jersey Entities were formed to pursue management contracts and consulting agreements in the State of New Jersey. In October 2012, MGA Holding NJ acquired a 10% ownership interest in Resorts Casino Hotel in Atlantic City, New Jersey ("Resorts Atlantic City").

Mohegan Gaming Advisors also holds 100% membership interests in MGA Holding MA, LLC (“MGA Holding MA”) and MGA Gaming MA, LLC (“MGA Gaming MA”). MGA Holding MA holds a 100% membership interest in MGA Palmer Partners, LLC (“MGA Palmer Partners”). MGA Palmer Partners holds a 100% membership interest in Mohegan Sun Massachusetts, LLC (together with MGA Holding MA, MGA Gaming MA and MGA Palmer Partners, the “Mohegan MA Entities”). The Mohegan MA Entities were formed to pursue potential gaming opportunities in the Commonwealth of Massachusetts.

In addition, Mohegan Gaming Advisors holds 100% membership interests in MGA Holding PA, LLC and MGA Gaming PA, LLC (collectively, the “Mohegan PA Entities”). The Mohegan PA Entities were formed to pursue potential gaming opportunities in the Commonwealth of Pennsylvania.

Additionally, Mohegan Gaming Advisors holds a 100% membership interest in MGA Holding FL, LLC (“MGA Holding FL”). MGA Holding FL holds a 100% membership interest in MGA Miami, LLC (together with MGA Holding FL, the “Mohegan FL Entities”). The Mohegan FL Entities were formed to pursue potential gaming opportunities in the State of Florida.

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CONSOLIDATED STATEMENTS OF INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2010
Revenues:
Gaming	$ 1,133,563	$ 1,190,202	$ 1,254,558
Food and beverage	91,655	86,251	92,149
Hotel	47,310	40,873	39,609
Retail, entertainment and other	119,134	118,559	112,194
Gross revenues	1,391,662	1,435,885	1,498,510
Less-Promotional allowances	(98,944)	(95,857)	(99,197)
Net revenues	1,292,718	1,340,028	1,399,313
Operating costs and expenses:
Gaming	687,021	708,929	771,909
Food and beverage	41,482	41,575	44,949
Hotel	15,807	14,339	14,293
Retail, entertainment and other	50,945	43,859	40,723
Advertising, general and administrative	190,639	192,673	198,171
Corporate	41,036	28,122	17,379
Depreciation and amortization	80,126	80,317	85,030
(Gain) loss on disposition of assets	(9)	241	353
Severance	0	29	12,521
Pre-opening	1,187	687	0
Impairment of Project Horizon	4,981	0	0	58,100
Relinquishment liability reassessment	(1,905)	(249)	(11,439)
Total operating costs and expenses	1,111,310	1,110,522	1,173,889
Income (loss) from operations	181,408	229,506	225,424
Other income (expense):
Accretion of discount to the relinquishment liability	(2,205)	(4,974)	(8,248)
Interest income	7,066	6,271	4,492
Interest expense, net of capitalized interest	(147,933)	(170,150)	(146,057)
Loss on early extinguishment of debt	(62,041)	(11,516)	(14,326)
Other expense, net	(853)	(1,595)	(44)
Total other expense	(205,966)	(181,964)	(164,183)
Net income (loss)	(24,558)	47,542	61,241
Loss attributable to non-controlling interests	380	2,784	2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$ (24,178)	$ 50,326	$ 63,260

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RELINQUISHMENT AGREEMENT

12 Months Ended

Sep. 30, 2014

RELINQUISHMENT AGREEMENT [Abstract]

RELINQUISHMENT AGREEMENT

RELINQUISHMENT AGREEMENT:

In February 1998, the Authority and TCA entered into a relinquishment agreement (the “Relinquishment Agreement”). Effective January 1, 2000 (the “Relinquishment Date”), the Relinquishment Agreement superseded a then-existing management agreement with TCA. The Relinquishment Agreement provides, among other things, that the Authority make certain payments to TCA out of, and determined as a percentage of, Revenues, as defined under the Relinquishment Agreement, generated by Mohegan Sun over a 15-year period commencing on the Relinquishment Date. The payments (“Senior Relinquishment Payments” and “Junior Relinquishment Payments”) have separate schedules and priorities. Senior Relinquishment Payments commenced on April 25, 2000, 25 days following the end of the first three-month period after the Relinquishment Date, and continue at the end of each three-month period thereafter until January 25, 2015. Junior Relinquishment Payments commenced on July 25, 2000, 25 days following the end of the first six-month period after the Relinquishment Date, and continue at the end of each six-month period thereafter until January 25, 2015. Each Senior and Junior Relinquishment Payment is 2.5% of Revenues generated by Mohegan Sun over the immediate preceding three-month or six-month payment period, as the case may be. Revenues are defined under the Relinquishment Agreement as gross gaming revenues, other than Class II Gaming revenues, and all other revenues, as defined, including, without limitation, hotel revenues, room service revenues, food and beverage revenues, ticket revenues, fees or receipts from the convention/events center and all rental revenues or other receipts from lessees and concessionaires, but not the gross receipts of such lessees, licenses and concessionaires, derived directly or indirectly from the facilities, as defined. Revenues under the Relinquishment Agreement exclude revenues generated from certain expansion areas of Mohegan Sun, such as Casino of the Wind, as such areas do not constitute facilities as defined under the Relinquishment Agreement.

In the event of any bankruptcy, liquidation, reorganization or similar proceeding relating to the Authority, the Relinquishment Agreement provides that Senior and Junior Relinquishment Payments then due and owing are subordinated in right of payment to the Authority's senior secured indebtedness and capital lease obligations, and that Junior Relinquishment Payments then due and owing are further subordinated in right of payment to all of the Authority's other senior indebtedness. The Relinquishment Agreement also provides that all relinquishment payments are subordinated in right of payment to minimum priority distribution payments, which are required monthly payments made by the Authority to the Tribe under the Priority Distribution Agreement, to the extent then due. The Authority, in accordance with authoritative guidance issued by the FASB pertaining to the accounting for contingencies, recorded a $549.1 million relinquishment liability at September 30, 1998 based on the estimated present value of its obligations under the Relinquishment Agreement.

As of September 30, 2014 and 2013, the carrying amount of the relinquishment liability was $25.2 million and $74.4 million, respectively. The decrease in the relinquishment liability during the fiscal year ended September 30, 2014 was due to $49.5 million in relinquishment payments and a $1.9 million relinquishment liability reassessment credit. This reduction in the liability was offset by $2.2 million representing the accretion of discount to the relinquishment liability.

Relinquishment payments consisted of the following (in millions):

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Principal	$	46.6	$	45.4	$	45.3
Accretion of discount	2.9		5.8		9.0
Total	$	49.5	$	51.2	$	54.3

The accretion of discount to the relinquishment liability reflects the accretion of the discount to the present value of the relinquishment liability for the impact of the time value of money. As of September 30, 2014 and 2013, relinquishment payments earned but unpaid were $13.2 million and $13.3 million, respectively.

The relinquishment liability reassessment credits of $1.9 million, $249,000 and $11.4 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively, resulted from reductions in Mohegan Sun revenues and revenue projections as of the end of each respective fiscal year compared to projections as of the end of the related prior fiscal year.

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DOCUMENT AND ENTITY INFORMATION (USD $)	12 Months Ended
	Sep. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	MOHEGAN TRIBAL GAMING AUTHORITY
Entity Central Index Key	0001005276
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding	0
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Public Float	$ 0

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MOHEGAN VENTURES-NORTHWEST, LLC (COWLITZ PROJECT) (Cowlitz Project)

12 Months Ended

Sep. 30, 2014

Cowlitz Project

Schedule of Long-term Development Projects [Line Items]

MOHEGAN VENTURES-NORTHWEST, LLC (COWLITZ PROJECT)

MOHEGAN VENTURES-NORTHWEST, LLC (COWLITZ PROJECT):

In July 2004, the Authority formed Mohegan Ventures-NW as its wholly-owned subsidiary. Mohegan Ventures-NW is one of three current members in Salishan-Mohegan, which was formed to participate in the Cowlitz Project, a proposed casino to be owned by the Cowlitz Tribe and to be located in Clark County, Washington. Mohegan Ventures-NW, Salishan Company, LLC, an unrelated entity, and a subsidiary of the Tribe hold membership interests in Salishan-Mohegan of 49.15%, 40% and 10.85%, respectively. Salishan-Mohegan holds a 100% membership interest in Salishan-Mohegan Two and Interchange Development Group, both of which were formed to acquire certain property related to the Cowlitz Project. Salishan-Mohegan is not a restricted entity of the Authority, and therefore, is not a guarantor of the Authority’s debt obligations.

In September 2004, Salishan-Mohegan entered into development and management agreements with the Cowlitz Tribe in connection with the Cowlitz Project, which agreements have been amended from time to time. Under the terms of the development agreement, Salishan-Mohegan will assist in securing financing, as well as administer and oversee the planning, designing, development, construction and furnishing of the proposed casino. The development agreement provides for development fees of 3% of total project costs, as defined under the development agreement. Under the terms of Salishan-Mohegan's operating agreement, development fees will be distributed to Mohegan Ventures-NW. In 2006, Salishan-Mohegan purchased a 152-acre site for the proposed casino, which will be transferred to the Cowlitz Tribe or the United States pursuant to the development agreement. Development of the Cowlitz Project is subject to certain governmental and regulatory approvals and agreements, including, but not limited to, a gaming compact with the State of Washington and acceptance of land into trust on behalf of the Cowlitz Tribe by the United States Department of the Interior. The development agreement provides for termination of Salishan-Mohegan’s exclusive development rights if the land is not taken into trust by December 31, 2020. Under the terms of the management agreement, Salishan-Mohegan will manage, operate and maintain the proposed casino for a period of seven years following its opening. The management agreement provides for management fees of 24% of net revenues, as defined under the management agreement, which approximates net income earned from the Cowlitz Project. Under the terms of Salishan-Mohegan's operating agreement, management fees will be allocated to the members of Salishan-Mohegan based on their respective membership interest. The management agreement is subject to approval by the National Indian Gaming Commission (the “NIGC”). On August 7, 2014, the Cowlitz Tribe’s Class III Tribal-State gaming compact with the State of Washington became effective with notice of federal approval published in the Federal Register. According to the notice, the compact allows for two gaming facilities, allocates 975 gaming machines for leasing, authorizes the operation of up to 3,000 gaming machines and 125 table games, and is in effect until terminated by written agreement of both parties.

Under the terms of the development agreement, certain receivables contributed to Salishan-Mohegan and amounts advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe are reimbursable to Salishan-Mohegan by the Cowlitz Tribe, subject to appropriate approvals defined under the development agreement. Reimbursements are contingent and are to be distributed upon: (1) the receipt of necessary financing for the development of the proposed casino and (2) the related property being taken into trust by the United States Department of the Interior. The Authority currently accrues interest on the Salishan-Mohegan receivables at an annual rate of 10.0%.

In March 2013, two lawsuits challenging a December 2010 decision of the Assistant Secretary - Indian Affairs of the Department of the Interior to take the 152-acre Cowlitz Project site into trust were dismissed on procedural grounds. In April 2013, pursuant to judicial directive, the Department of the Interior issued a new Record of Decision to take the Cowlitz Project site into trust, determining for a second time that the site will serve as the initial reservation of the Cowlitz Tribe and that the tribe may conduct gaming on such lands under the Indian Gaming Regulatory Act. In June 2013, the plaintiffs in the earlier litigation filed two new lawsuits challenging the new Record of Decision, and, in July 2013, those lawsuits were consolidated. By Notice of Trust Acquisition filed with the court on October 22, 2014, while motions for summary judgment filed by the plaintiffs and the defendants were pending, the federal defendants provided the court notice of the United States Department of the Interior's planned trust acquisition of the Cowlitz Project site, which was the subject of the litigation, on the earlier of: (1) January 21, 2015 and (2) 30 days after a court order granting summary judgment in favor of the federal defendants. On December 12, 2014, a U.S. District Court for the District of Columbia judge entered an order granting summary judgment in favor of the federal defendants, thereby upholding the Record of Decision and denying the federal plaintiffs’ motion. On December 18, 2014, one of the federal plaintiffs, the Confederated Tribes of the Grand Ronde Community of Oregon, filed notice of an appeal of that order to the Court of Appeals for the District of Columbia Circuit. The Authority can provide no assurance as to the outcome of this appeal or any future litigation or that the remaining steps and conditions for the Cowlitz Project site to be taken into trust for gaming will be satisfied or that necessary financing for the development of the proposed casino will be obtained.

In light of the aforementioned and the uncertainty in the development of the Cowlitz Project, the Authority maintains a reserve for doubtful collection of the Salishan-Mohegan receivables, which is based on the Authority’s estimate of the probability that the receivables will be collected. As of September 30, 2014 and 2013, the Salishan-Mohegan receivables, including accrued interest, totaled $56.8 million and $48.0 million, respectively. As of September 30, 2014 and 2013, related reserves for doubtful collection totaled $17.0 million and $14.4 million, respectively. The Salishan-Mohegan receivables were included in other assets, net, in the accompanying consolidated balance sheets.

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CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total capital at beginning of period	$ 199,385	$ 209,263	$ 198,724
Cumulative-effect of adoption of amendments to ASC 924 regarding jackpot liabilities			1,968
Contributions from members	0	0	280
Net income (loss)	(24,558)	47,542	61,241
Distributions to Mohegan Tribe	(50,000)	(50,000)	(52,950)
Repurchase of membership interest		(7,420)
Total capital at end of period	124,827	199,385	209,263
Mohegan Tribal Gaming Authority
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total capital at beginning of period	199,236	208,681	196,403
Cumulative-effect of adoption of amendments to ASC 924 regarding jackpot liabilities			1,968
Contributions from members			0
Net income (loss)	(24,178)	50,326	63,260
Distributions to Mohegan Tribe	(50,000)	(50,000)	(52,950)
Repurchase of membership interest		(9,771)
Total capital at end of period	125,058	199,236	208,681
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total capital at beginning of period	149	582	2,321
Cumulative-effect of adoption of amendments to ASC 924 regarding jackpot liabilities			0
Contributions from members			280
Net income (loss)	(380)	(2,784)	(2,019)
Distributions to Mohegan Tribe	0	0	0
Repurchase of membership interest		2,351
Total capital at end of period	$ (231)	$ 149	$ 582

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LONG-TERM DEBT

12 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT:

Long-term debt consisted of the following (in thousands, including current maturities):

	September 30, 2014			September 30, 2013
Prior Bank Credit Facility	$	—		$	393,000
Prior Term Loan Facility, net of discount of $3,005	—			221,995
Senior Secured Credit Facility - Revolving, due June 2018	37,000			—
Senior Secured Credit Facility - Term Loan A, due June 2018, net of discount of $523	119,789			—
Senior Secured Credit Facility - Term Loan B, due June 2018, net of discount of $8,337	716,188			—
2009 11 1/2% Second Lien Senior Secured Notes, net of discount of $5	—			195
2012 11 1/2% Second Lien Senior Secured Notes, net of discount of $8,898	—			190,902
2013 9 3/4% Senior Unsecured Notes, due September 2021	500,000			500,000
2004 7 1/8% Senior Subordinated Notes	—			21,156
2005 6 7/8% Senior Subordinated Notes, due February 2015	9,654			9,654
2012 11 % Senior Subordinated Notes, due September 2018, net of discount of $3,506 and $4,168, respectively	271,684			271,022
Line of Credit	3,041			—
2009 Mohegan Tribe Promissory Note, due September 2015	1,750			3,500
2012 Mohegan Tribe Minor's Trust Promissory Note, due March 2017	16,500			18,000
2013 Mohegan Tribe Promissory Note, due December 2018	7,420			7,420
Downs Lodging Credit Facility, due July 2016	45,000			45,000
Other	2,910			468
Long-term debt, excluding capital leases	1,730,936			1,682,312
Less: current portion of long-term debt	(31,558		)	(30,719		)
Long-term debt, net of current portion	$	1,699,378		$	1,651,593

Maturities of long-term debt are as follows (in thousands, including current maturities):

Fiscal Years
2015	$	31,558
2016	70,324
2017	30,105
2018	1,102,620
2019	7,725
Thereafter	500,970
Total	$	1,743,302

In November 2013, the Authority completed a series of refinancing transactions relating to its Prior Bank Credit Facilities and 2009 and 2012 Second Lien Senior Secured Notes, including the repayment and termination of the Prior Bank Credit Facilities and the repurchase or redemption of the 2009 and 2012 Second Lien Senior Secured Notes with proceeds from new Senior Secured Credit Facilities (all further discussed below).

The Authority incurred approximately $60.8 million in costs in connection with these refinancing transactions, consisting primarily of consulting, legal and tender and consent fees. Previously deferred debt issuance costs and debt discounts totaling $22.4 million, as well as $39.6 million in new transaction costs, were expensed and recorded as a loss on early extinguishment of debt in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014. New debt issuance costs totaling $11.5 million were capitalized and included in other assets, net, in the accompanying consolidated balance sheet as of September 30, 2014 and will be amortized over the term of the related debt. The remaining $9.7 million in new costs was reflected as debt discount and included in long-term debt, net of current portion, in the accompanying consolidated balance sheet as of September 30, 2014 and will be amortized over the term of the related debt.

Prior Bank Credit Facilities

First Lien, First Out Credit Facility

In March 2012, the Authority entered into a Fourth Amended and Restated Bank Credit Facility providing for a $400.0 million term loan and a revolving loan with letter of credit and borrowing capacity of up to $75.0 million from a syndicate of financial institutions and commercial banks, with Bank of America, N.A. serving as Administrative Agent (the "Prior Bank Credit Facility"). In November 2013, the Authority repaid and terminated the Prior Bank Credit Facility with proceeds from new Senior Secured Credit Facilities (further discussed below). As of September 30, 2013, accrued interest, including commitment fees, on the Prior Bank Credit Facility was $61,000.

First Lien, Second Out Term Loan Facility

In March 2012, the Authority entered into a loan agreement providing for a $225.0 million first lien, second out term loan with Wells Fargo Gaming Capital, LLC serving as Administrative Agent (the "Prior Term Loan Facility" and, together with the Prior Bank Credit Facility, the "Prior Bank Credit Facilities"). In November 2013, the Authority repaid and terminated the Prior Term Loan Facility with proceeds from new Senior Secured Credit Facilities (further discussed below). As of September 30, 2013, accrued interest on the Prior Term Loan Facility was $1.1 million.

Senior Secured Credit Facilities

In November 2013, the Authority entered into a loan agreement among the Authority, the Tribe, the Guarantors as defined below, RBS Citizens, N.A. as Administrative and Collateral Agent and the other lenders and financial institutions party thereto, providing for $955.0 million in aggregate principal amount of senior secured credit facilities (the “Senior Secured Credit Facilities”), comprised of a $100.0 million senior secured revolving credit facility (the “Revolving Facility”), a $125.0 million senior secured term loan A facility (the “Term Loan A Facility”) and a $730.0 million senior secured term loan B facility (the “Term Loan B Facility"). The Senior Secured Credit Facilities mature on June 15, 2018, subject to extension based on the satisfaction of certain conditions to November 19, 2018 (in the case of the Revolving Facility and the Term Loan A Facility) and November 19, 2019 (in the case of the Term Loan B Facility).

The Term Loan A Facility amortizes in equal quarterly installments in an aggregate annual amount equal to 5.0% of the original principal amount for the first year after the closing date, 7.5% of the original principal amount for the second year after the closing date and 10.0% of the original principal amount in each year thereafter, with the balance payable on the maturity date of the Term Loan A Facility. The Term Loan B Facility amortizes in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount. Amortization of the Term Loan A Facility and Term Loan B Facility began the first full fiscal quarter after the closing date. The proceeds from the Term Loan A Facility and Term Loan B Facility, together with a drawing under the Revolving Facility, were used to satisfy in full all amounts due under the Authority's Prior Bank Credit Facilities, to repurchase or redeem all of the Authority's outstanding 2009 and 2012 Second Lien Senior Secured Notes and to otherwise satisfy and discharge the obligations in respect of such notes and to pay related fees and expenses. The Revolving Facility will otherwise be available for general corporate purposes.

As of September 30, 2014, amounts outstanding under the Revolving Facility, Term Loan A Facility and Term Loan B Facility totaled $37.0 million, $120.3 million and $724.5 million, respectively. As of September 30, 2014, letters of credit issued under the Revolving Facility totaled $2.9 million, of which no amount was drawn. Inclusive of letters of credit, which reduce borrowing availability under the Revolving Facility, and after taking into account restrictive financial covenant requirements, the Authority had approximately $57.1 million of borrowing capacity under its Revolving Facility and Line of Credit as of September 30, 2014.

Borrowings under the Senior Secured Credit Facilities incur interest as follows: (i) for base rate loans under the Revolving Facility and Term Loan A Facility, a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 50 basis points and (c) the one-month LIBOR rate plus 100 basis points (the highest of (a), (b) and (c), the “base rate”), plus a leverage-based margin of 250 to 350 basis points; (ii) for Eurodollar rate loans under the Revolving Facility and Term Loan A Facility, the applicable LIBOR rate plus a leverage-based margin of 350 to 450 basis points; (iii) for base rate loans under the Term Loan B Facility, the base rate (subject to a 2.0% floor) plus 350 basis points; and (iv) for Eurodollar rate loans under the Term Loan B Facility, the applicable LIBOR rate (subject to a 1.0% floor) plus 450 basis points. The Authority also is required to pay a leverage-based commitment fee of between 37.5 and 50 basis points for unused commitments under the Revolving Facility. Interest on base rate loans is payable quarterly in arrears. Interest on Eurodollar rate loans of three months or less is payable at the end of each applicable interest period and for Eurodollar rate loans of more than three months, interest is payable at intervals of three months duration after the beginning of such interest period.

As of September 30, 2014, the $37.0 million outstanding under the Revolving Facility was comprised of a $14.0 million base rate loan based on a base rate of 3.25% plus 350 basis points and a $23.0 million Eurodollar rate loan based on a Eurodollar rate of 0.15% plus 450 basis points. The commitment fee was 0.50% as of September 30, 2014. As of September 30, 2014, the $120.3 million outstanding under the Term Loan A Facility was based on a Eurodollar rate of 0.23% plus 450 basis points. As of September 30, 2014, the $724.5 million outstanding under the Term Loan B Facility was based on the Eurodollar rate floor of 1.0% plus 450 basis points. As of September 30, 2014, accrued interest, including commitment fees, on the Senior Secured Credit Facilities was $212,000.

The Authority's obligations under the Senior Secured Credit Facilities are fully and unconditionally guaranteed, jointly and severally, by the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming (collectively, the “Guarantors”). The Senior Secured Credit Facilities are collateralized by a first priority lien on substantially all of the Authority's property and assets and those of the Guarantors (other than MBC), including the assets that comprise Mohegan Sun at Pocono Downs and a leasehold mortgage on the land and improvements that comprise Mohegan Sun (the Authority and the Guarantors, other than MBC, are collectively referred to herein as the “Grantors”). The Grantors also are required to pledge additional assets as collateral for the Senior Secured Credit Facilities as they and future guarantor subsidiaries acquire them.

The Senior Secured Credit Facilities contain customary covenants applicable to the Authority and its restricted subsidiaries, including covenants governing: incurrence of indebtedness, incurrence of liens, payment of dividends and other distributions, investments, asset sales, affiliate transactions, mergers or consolidations and capital expenditures. Additionally, the Senior Secured Credit Facilities include financial maintenance covenants pertaining to total leverage, secured leverage and minimum fixed charge coverage.

As of September 30, 2014, the Authority and the Tribe were in compliance with all respective covenant requirements under the Senior Secured Credit Facilities.

The Authority continues to monitor revenues and manage expenses and enhance operating efficiencies to ensure continued compliance with its financial covenant requirements under the Senior Secured Credit Facilities. While the Authority anticipates that it will remain in compliance with all covenant requirements under its Senior Secured Credit Facilities for all periods prior to maturity, it may need to increase revenues or offset any future declines in revenues by implementing additional cost saving and other initiatives to ensure compliance with these financial covenant requirements. If the Authority is unable to satisfy its financial covenant requirements, it would need to obtain waivers or consents under the Senior Secured Credit Facilities; however, the Authority can provide no assurance that it would be able to obtain such waivers or consents. If the Authority is unable to obtain such waivers or consents, it would be in default under its Senior Secured Credit Facilities, which may result in cross-defaults under its other outstanding indebtedness and allow its lenders and creditors to exercise their rights and remedies as defined under their respective agreements, including their right to accelerate the repayment of the Authority's outstanding indebtedness. If such acceleration were to occur, the Authority can provide no assurance that it would be able to obtain the financing necessary to repay such accelerated indebtedness.

Senior Secured Notes

2009 11  ¹/2% Second Lien Senior Secured Notes

In October 2009, the Authority issued $200.0 million Second Lien Senior Secured Notes with fixed interest payable at a rate of 11.5%per annum (the “2009 Second Lien Notes”). In March 2012, the Authority completed a private exchange offer and consent solicitation pursuant to which an aggregate principal amount of $199.8 million 2009 Second Lien Notes were tendered and exchanged, leaving an aggregate principal amount of $200,000 2009 Second Lien Notes outstanding. The 2009 Second Lien Notes were scheduled to mature on November 1, 2017. The first call date for the 2009 Second Lien Notes was November 1, 2013. In November 2013, the Authority called for redemption all $200,000 of its outstanding 2009 Second Lien Notes. The 2009 Second Lien Notes were redeemed on December 19, 2013. As of September 30, 2013, accrued interest on the 2009 Second Lien Notes was $10,000.

2012 11 ½% Second Lien Senior Secured Notes

In March 2012, the Authority issued $199.8 million Second Lien Senior Secured Notes with fixed interest payable at a rate of 11.5%per annum (the “2012 Second Lien Notes”) in exchange for an equal amount of 2009 Second Lien Notes. The 2012 Second Lien Notes were scheduled to mature on November 1, 2017. Subsequent to November 1, 2014, the Authority was entitled to redeem the 2012 Second Lien Notes, in whole or in part, at a premium decreasing ratably to zero, plus accrued interest. In November 2013, the Authority completed a tender offer and consent solicitation for its outstanding 2012 Second Lien Notes. As part of the tender offer, the Authority solicited and received requisite consents from tendering holders to certain amendments to the indentures governing the 2012 Second Lien Notes, which eliminated certain restrictive covenants under the notes and related indenture. Pursuant to this transaction, the Authority repurchased or redeemed all of its outstanding 2012 Second Lien Notes in the aggregate principal amount of $199.8 million. As of September 30, 2013, accrued interest on the 2012 Second Lien Notes was $9.6 million.

Senior Unsecured Notes

2013 9 ³/4% Senior Unsecured Notes

In August 2013, the Authority issued $500.0 million Senior Unsecured Notes with fixed interest payable at a rate of 9.75%per annum (the “2013 Senior Unsecured Notes”). The net proceeds from this transaction, together with borrowings under the Prior Bank Credit Facility, were used to repurchase or redeem all of the Authority's then outstanding 2012 10.5% Third Lien Senior Secured Notes, to repurchase $69.0 millionof the Authority's outstanding 2012 11.0% Senior Subordinated Notes and to pay related fees and expenses. The 2013 Senior Unsecured Notes mature on September 1, 2021. The Authority may redeem the 2013 Senior Unsecured Notes, in whole or in part, at any time prior to September 1, 2016 at a price equal to 100% of the principal amount plus a make-whole premium and accrued interest to the date of redemption. On or after September 1, 2016, the Authority may redeem the 2013 Senior Unsecured Notes, in whole or in part, at specified redemption prices, together with accrued interest to the date of redemption. If the Authority experiences specific kinds of change of control triggering events, the Authority must offer to repurchase the 2013 Senior Unsecured Notes at a price equal to 101% of the principal amount thereof, plus accrued interest to the purchase date. In addition, if the Authority undertakes certain types of asset sales and does not use the related sale proceeds for specified purposes, the Authority may be required to offer to repurchase the 2013 Senior Unsecured Notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2013 Senior Unsecured Notes is payable semi-annually on March 1^st and September 1^st, commencing March 1, 2014. On March 11, 2014, the Authority completed an offer to exchange the 2013 Senior Unsecured Notes for a new issue of substantially identical debt securities registered under the Securities Act of 1933, with all outstanding notes being exchanged. As of September 30, 2014 and 2013, accrued interest on the 2013 Senior Unsecured Notes was $4.1 million and $6.2 million, respectively.

The 2013 Senior Unsecured Notes are uncollateralized general obligations of the Authority and are effectively subordinated to all of the Authority’s and the Guarantors' and future guarantor subsidiaries' senior secured indebtedness, including the Senior Secured Credit Facilities, to the extent of the value of the collateral securing such indebtedness. The 2013 Senior Unsecured Notes also are effectively subordinated to any indebtedness and other liabilities (including trade payables) of the Authority’s subsidiaries that do not guarantee the 2013 Senior Unsecured Notes. The 2013 Senior Unsecured Notes rank equally in right of payment with the Authority’s other unsecured, unsubordinated indebtedness, including trade payables and the senior portion of the Authority’s payment obligations under its Relinquishment Agreement. The 2013 Senior Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, by the Guarantors.

The 2013 Senior Unsecured Notes indenture contains certain covenants that, subject to certain significant exceptions, limit, among other things, the Authority’s and Guarantors’ ability to incur additional debt, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company or transfer and sell assets. The 2013 Senior Unsecured Notes indenture includes customary events of default, including, but not limited to, failure to make required payments, failure to comply with certain agreements or covenants, failure to pay certain other indebtedness, the occurrence of which is caused by a failure to pay principal, premium or interest or results in the acceleration of such indebtedness, certain events of bankruptcy and insolvency and certain judgment defaults.

Senior Subordinated Notes

2004 7 ¹/8% Senior Subordinated Notes

In August 2004, the Authority issued $225.0 million Senior Subordinated Notes with fixed interest payable at a rate of 7.125%per annum (the “2004 Senior Subordinated Notes”). In March 2012, the Authority completed a private exchange offer and consent solicitation for any or all of its outstanding 2004 Senior Subordinated Notes. As part of the exchange offer, the Authority solicited and received consents from tendering holders to certain amendments to the indentures governing the 2004 Senior Subordinated Notes, which eliminated certain restrictive covenants under the notes and related indenture. The aggregate principal amount of 2004 Senior Subordinated Notes tendered and exchanged was $203.8 million. Subsequent to the Authority's March 2012 private exchange offer, $21.2 million of the 2004 Senior Subordinated Notes remained outstanding, which amount, including accrued interest, was repaid at maturity on August 15, 2014 with cash on hand and drawings under the Revolving Facility. As of September 30, 2013, accrued interest on the 2004 Senior Subordinated Notes was $188,000.

2005 6 ⁷/8% Senior Subordinated Notes

In February 2005, the Authority issued $150.0 million Senior Subordinated Notes with fixed interest payable at a rate of 6.875%per annum (the “2005 Senior Subordinated Notes”). The 2005 Senior Subordinated Notes mature on February 15, 2015. The 2005 Senior Subordinated Notes are callable at the Authority's option at par. Interest on the 2005 Senior Subordinated Notes is payable semi-annually on February 15^th and August 15^th.

In March 2012, the Authority completed a private exchange offer and consent solicitation for any or all of its outstanding 2005 Senior Subordinated Notes. As part of the exchange offer, the Authority solicited and received consents from tendering holders to certain amendments to the indentures governing the 2005 Senior Subordinated Notes, which eliminated certain covenants under the notes and related indenture. The aggregate principal amount of 2005 Senior Subordinated Notes tendered and exchanged was $140.3 million. An aggregate principal amount of $9.7 million 2005 Senior Subordinated Notes remains outstanding as of September 30, 2014. The Authority plans to repay the outstanding 2005 Senior Subordinated Notes, including accrued interest, at maturity with cash on hand and drawings under the Revolving Facility. As of September 30, 2014 and 2013, accrued interest on the 2005 Senior Subordinated Notes was $83,000.

2012 11% Senior Subordinated Notes

In March 2012, the Authority issued $344.2 million Senior Subordinated Toggle Notes with fixed interest payable at a rate of 11%per annum (the “2012 Senior Subordinated Notes”) in exchange for $203.8 million of 2004 Senior Subordinated Notes and $140.3 million of 2005 Senior Subordinated Notes. The 2012 Senior Subordinated Notes mature on September 15, 2018. The Authority may redeem the 2012 Senior Subordinated Notes, in whole or in part, at any time, at a price equal to 100% of the principal amount plus accrued interest. If a change of control of the Authority occurs, the Authority must offer to repurchase the 2012 Senior Subordinated Notes at a price equal to 101% of the principal amount, plus accrued interest. In addition, if the Authority undertakes certain types of asset sales or suffers events of loss, and the Authority does not use the related sale or insurance proceeds for specified purposes, the Authority may be required to offer to repurchase the 2012 Senior Subordinated Notes at a price equal to 100% of the principal amount, plus accrued interest. Interest on the 2012 Senior Subordinated Notes is payable semi-annually on March 15^th and September 15^th. The initial interest payment on the 2012 Senior Subordinated Notes was payable entirely in cash. For any subsequent interest payment period through March 15, 2018, the Authority may, at its option, elect to pay interest on the 2012 Senior Subordinated Notes either entirely in cash or by paying up to 2% in 2012 Senior Subordinated Notes (“PIK Interest”). If the Authority elects to pay PIK Interest, such election will increase the principal amount of the 2012 Senior Subordinated Notes in an amount equal to the amount of PIK Interest for the applicable interest payment period to holders of 2012 Senior Subordinated Notes on the relevant record date.

In August 2013, the Authority repurchased an aggregate principal amount of $69.0 million 2012 Senior Subordinated Notes. An aggregate principal amount of $275.2 million 2012 Senior Subordinated Notes remains outstanding as of September 30, 2014. As of September 30, 2014 and 2013, accrued interest on the 2012 Senior Subordinated Notes was $1.3 million.

The 2012 Senior Subordinated Notes and guarantees have not been and will not be registered under the Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

The Authority's senior subordinated notes are uncollateralized general obligations of the Authority and are subordinated to borrowings under the Senior Secured Credit Facilities and 2013 Senior Unsecured Notes. The senior subordinated notes are fully and unconditionally guaranteed, jointly and severally, by the Guarantors.

The senior and senior subordinated note indentures contain certain non-financial and financial covenant requirements with which the Authority and the Tribe must comply. The non-financial covenant requirements include, among other things, reporting obligations, compliance with laws and regulations, maintenance of licenses and insurances and continued existence of the Authority. The financial covenant requirements include, among other things, subject to certain exceptions, limitations on the Authority's and the Guarantors' ability to incur additional indebtedness, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company, transfer or sell assets or impair assets constituting collateral.

As of September 30, 2014, the Authority and the Tribe were in compliance with all respective covenant requirements under the senior and senior subordinated note indentures.

The Authority or its affiliates may, from time to time, seek to purchase or otherwise retire outstanding indebtedness for cash in open market purchases, privately negotiated transactions or otherwise. Any such transaction will depend on prevailing market conditions and the Authority's liquidity and covenant requirement restrictions, among other factors.

Line of Credit

In November 2013, in connection with the new Senior Secured Credit Facilities, the Authority entered into a new $16.5 million revolving credit facility with Bank of America, N.A. (the “Line of Credit”). The Line of Credit is coterminous with the Senior Secured Credit Facilities. Pursuant to provisions of the Senior Secured Credit Facilities, under certain circumstances, the Line of Credit may be converted into loans under the Senior Secured Credit Facilities. Under the Line of Credit, each advance accrues interest on the basis of a one-month LIBOR Rate plus an applicable margin based on the Authority's total leverage ratio, as each term is defined under the Line of Credit. As of September 30, 2014, amounts outstanding under the Line of Credit totaled $3.0 million. Borrowings under the Line of Credit are uncollateralized obligations. The Line of Credit contains negative covenants and financial maintenance covenants that are substantially the same as those contained in the Senior Secured Credit Facilities. As of September 30, 2014, the Authority was in compliance with all covenant requirements under the Line of Credit. As of September 30, 2014, accrued interest on the Line of Credit was $23,000. As of September 30, 2013, there was no accrued interest on the Line of Credit.

2009 Mohegan Tribe Promissory Note

In September 2009, the Tribe made a $10.0 million loan to Salishan-Mohegan (the “2009 Mohegan Tribe Promissory Note”). The 2009 Mohegan Tribe Promissory Note was amended in June 2014 to extend the maturity date to September 30, 2015. The 2009 Mohegan Tribe Promissory Note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) $1.2 million per quarter, commencing December 31, 2013 through March 31, 2014 and (ii) $1.3 million on June 30, 2015, with the balance of accrued and unpaid interest due at maturity. As amended, principal outstanding under the 2009 Mohegan Tribe Promissory Note amortizes as follows: (i) $1.625 million per quarter, commencing December 31, 2012 through September 30, 2013, (ii) $875,000 per quarter, commencing December 31, 2013 through March 31, 2014, (iii) $875,000 on June 30, 2015 and (iv) $875,000 at maturity. As of September 30, 2014 and 2013, accrued interest on the Mohegan Tribe Promissory Note was $2.5 million and $4.7 million, respectively.

2012 Mohegan Tribe Minor's Trust Promissory Note

In March 2012, Comerica Bank & Trust, N.A., Trustee f/b/o The Mohegan Tribe of Indians of Connecticut Minor's Trust, made a $20.0 million loan to Salishan-Mohegan (the “2012 Mohegan Tribe Minor's Trust Promissory Note”). The 2012 Mohegan Tribe Minor's Trust Promissory Note was amended in June 2014 to extend the maturity date to March 31, 2017. The 2012 Mohegan Tribe Minor's Trust Promissory Note accrues interest at an annual rate of 10.0%. As amended, accrued interest is payable as follows: (i) quarterly, commencing June 30, 2012 through March 31, 2014, (ii) on July 1, 2014 on the unpaid balance for the period April 1, 2014 through June 30, 2014, (iii) $800,000 per quarter, commencing September 30, 2015 through March 31, 2016 and (iv) quarterly, thereafter on the unpaid balance. As amended, principal outstanding under the 2012 Mohegan Tribe Minor's Trust Promissory Note amortizes as follows: (i) $500,000 per quarter, commencing December 31, 2012 through March 31, 2014, (ii) $500,000 on July 1, 2014 and September 30, 2015, (iii) $1.5 million per quarter, commencing December 31, 2015 through September 30, 2016 and (iv) $10.0 million at maturity. As of September 30, 2014 and 2013, accrued interest on the 2012 Mohegan Tribe Minor's Trust Promissory Note was $416,000 and $5,000, respectively.

2013 Mohegan Tribe Promissory Note

In March 2013, MG&H purchased and acquired all of the Tribe's membership interest in MG&H in exchange for a promissory note in the principal amount of $7.4 million (the “2013 Mohegan Tribe Promissory Note”). The 2013 Mohegan Tribe Promissory Note matures on December 31, 2018. The 2013 Mohegan Tribe Promissory Note accrues interest at an annual rate of 4.0% payable quarterly. As of September 30, 2014 and 2013, accrued interest on the 2013 Mohegan Tribe Promissory Note was $1,000.

Downs Lodging Credit Facility

In July 2012, Downs Lodging, a single purpose entity and wholly-owned unrestricted subsidiary of the Authority, entered into a credit agreement providing for a $45.0 million term loan from a third-party lender (the “Downs Lodging Credit Facility”). The proceeds from the Downs Lodging Credit Facility were used by Downs Lodging to fund Project Sunlight, a hotel and convention center expansion project at Mohegan Sun at Pocono Downs. The Downs Lodging Credit Facility matures on July 12, 2016 and accrues interest at an annual rate of 13.0%. Under the terms of the Downs Lodging Credit Facility, accrued interest of 10.0% is payable monthly in cash during the term of the loan, with the remaining 3.0% due at maturity. In addition, a 3.0% exit fee is payable upon repayment of the loan principal. The Downs Lodging Credit Facility is a senior secured obligation of Downs Lodging, collateralized by all existing and future assets of Downs Lodging. The Downs Lodging Credit Facility subjects Downs Lodging to certain covenant requirements customarily found in loan agreements for similar transactions. As of September 30, 2014, Downs Lodging was in compliance with all covenant requirements under the Downs Lodging Credit Facility. As of September 30, 2014 and 2013, there was no accrued interest on the Downs Lodging Credit Facility.

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OTHER CURRENT ASSETS AND OTHER CURRENT LIABILITIES

12 Months Ended

Sep. 30, 2014

Other Current Assets and Other Current Liabilities [Abstract]

OTHER CURRENT ASSETS AND OTHER CURRENT LIABILITIES

OTHER CURRENT ASSETS AND OTHER CURRENT LIABILITIES:

Other current assets consisted of the following (in thousands):

	September 30, 2014		September 30, 2013
Non-qualified deferred compensation	$	9,809	$	9,832
Prepaid expenses and other miscellaneous current assets	7,188		10,686
Total other current assets	$	16,997	$	20,518

Other current liabilities consisted of the following (in thousands):

	September 30, 2014		September 30, 2013
Accrued payroll and related taxes and benefits	$	35,602	$	36,538
Combined outstanding Slot Win Contribution and free promotional slot play contribution	11,617		12,691
Accrued severance	771		2,395
Amounts due to horsemen	8,109		7,805
Other miscellaneous current liabilities	71,076		64,553
Total other current liabilities	$	127,175	$	123,982

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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

12 Months Ended

Sep. 30, 2014

Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

MOHEGAN TRIBAL GAMING AUTHORITY

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2014, 2013 and 2012

(in thousands)

	Column A		Column B		Column C		Column D
	Balances at Beginning of Year		Charges to Costs and Expenses		Deductions from Reserves (1)		Balances at End of Year
Description:
Fiscal Year ended September 30, 2014
Reserves and allowances deducted from asset accounts:
Reserves for uncollectible accounts:	$	34,420	$	6,146	$	1,930	$	38,636
Fiscal Year ended September 30, 2013
Reserves and allowances deducted from asset accounts:
Reserves for uncollectible accounts:	$	30,998	$	3,436	$	14	$	34,420
Fiscal Year Ended September 30, 2012
Reserves and allowances deducted from asset accounts:
Reserves for uncollectible accounts:	$	30,737	$	3,189	$	2,928	$	30,998

 ________________________

(1) Deductions from reserves include write-off of uncollectible accounts, net of recoveries of accounts previously written-off.

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MOHEGAN VENTURES WISCONSIN, LLC (MENOMINEE PROJECT) (Menominee Project)

12 Months Ended

Sep. 30, 2014

Menominee Project

Schedule of Long-term Development Projects [Line Items]

MOHEGAN VENTURES WISCONSIN, LLC (MENOMINEE PROJECT)

MOHEGAN VENTURES WISCONSIN, LLC (MENOMINEE PROJECT):

In March 2007, the Authority formed MVW as its wholly-owned subsidiary and one of two original members in WTG, which was formed to participate in the Menominee Project, a proposed casino to be owned by the Menominee Tribe and to be located in Kenosha, Wisconsin. MVW now holds 100% membership interest in WTG. MVW and WTG are full and unconditional guarantors of the Authority’s outstanding indebtedness.

In connection with the Menominee Project, the Authority entered into a management agreement with the Menominee Tribe and the Menominee Kenosha Gaming Authority (the “MKGA”), and WTG purchased the development rights for the Menominee Project under a development agreement with the Menominee Tribe and the MKGA. In September 2010, WTG entered into a release and reimbursement agreement pursuant to which WTG: (1) relinquished its development rights and was relieved of its development obligations for the Menominee Project, (2) retained its rights to reimbursement of certain receivables related to reimbursable costs and expenses advanced by WTG on behalf of the Menominee Tribe for the Menominee Project, subject to certain conditions and (3) assigned the option to purchase the proposed Menominee Project site in Kenosha to MKGA. The Authority retained its interest in the management agreement. Due to the uncertainty in the development of the Menominee Project, as of September 30, 2008, the Authority fully reserved for these receivables and wrote-off the related development rights intangible asset. In February 2012, the MKGA terminated its efforts to seek NIGC approval of the management agreement. As of September 30, 2014, the WTG receivables remain fully reserved.

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EMPLOYEE BENEFIT PLANS

12 Months Ended

Sep. 30, 2014

Compensation Related Costs [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS:

The Authority maintains a retirement savings plan for its employees under Section 401(k) and Section 401(a) of the Internal Revenue Code (the “Mohegan Retirement and 401(k) Plan”). Under the 401(k) portion of the plan, participants may contribute between 1% and 25% of eligible compensation up to the maximum allowed by the Internal Revenue Code. The Authority matches 50% of participants’ elective deferral contributions up to a maximum of 3% of participants’ compensation. Under the retirement portion of the plan, the Authority may make discretionary retirement contributions based on a rate of $0.30 per qualified hour worked. In general, employees become eligible for the Mohegan Retirement and 401(k) Plan after 90 days of service and become fully vested after six years of service. In February 2009, the Authority suspended both its discretionary matching 401(k) contributions and retirement contributions. In July 2012, the Authority resumed its discretionary matching 401(k) contributions. Discretionary retirement contributions remain suspended. The Authority contributed $2.5 million, $2.4 million and $612,000, net of forfeitures, to the Mohegan Retirement and 401(k) Plan for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

The Authority, together with the Tribe, maintains a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for certain key employees. Under the Deferred Compensation Plan, participants may defer up to 100% of their compensation. Participants’ withdrawals, net of contributions and changes in fair value of investments, totaled $22,000 and $7.4 million for the fiscal years ended September 30, 2014 and 2013, respectively. Participants’ contributions, net of withdrawals and changes in fair value of investments, totaled $493,000 for the fiscal year ended September 30, 2012.

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SEGMENT REPORTING (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014 segment	Sep. 30, 2013	Sep. 30, 2012
Segment Reporting Information [Line Items]
Number of reportable segments	2
Net revenues	$ 1,292,718	$ 1,340,028	$ 1,399,313
Income (loss) from operations	181,408	229,506	225,424
Accretion of discount to the relinquishment liability	(2,205)	(4,974)	(8,248)
Interest income	7,066	6,271	4,492
Interest expense, net of capitalized interest	(147,933)	(170,150)	(146,057)
Loss on early extinguishment of debt	(62,041)	(11,516)	(14,326)
Other expense, net	(853)	(1,595)	(44)
Net income (loss)	(24,558)	47,542	61,241
Loss attributable to non-controlling interests	380	2,784	2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	(24,178)	50,326	63,260
Capital expenditures incurred	32,628	66,053	43,642
Total assets	2,055,960	2,136,150
Mohegan Sun
Segment Reporting Information [Line Items]
Net revenues	995,100	1,042,078	1,084,017
Income (loss) from operations	181,325	212,680	199,358
Capital expenditures incurred	19,518	27,652	36,542
Total assets	1,368,352	1,425,152
Mohegan Sun at Pocono Downs
Segment Reporting Information [Line Items]
Net revenues	296,578	296,648	314,999
Income (loss) from operations	36,956	43,763	43,296
Capital expenditures incurred	3,946	4,673	3,543
Total assets	551,655	558,700
Corporate and other
Segment Reporting Information [Line Items]
Net revenues	5,391	1,302	297
Income (loss) from operations	(36,873)	(26,937)	(17,230)
Capital expenditures incurred	9,164	33,728	3,557
Total assets	135,953	152,298
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net revenues	$ (4,351)	$ 0	$ 0

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LEASES

12 Months Ended

Sep. 30, 2014

Leases [Abstract]

LEASES

LEASES:

The Authority leases certain areas at Mohegan Sun and Mohegan Sun at Pocono Downs to third-party food and beverage and retail outlets, as well as the rights to access and utilize Mohegan Sun’s rooftop for the installation and operation of antenna towers. Minimum future rental income that the Authority expects to earn under non-cancelable leases is as follows (in thousands):

	Fiscal Years Ending September 30,
	2015		2016		2017		2018		2019		Thereafter		Total
Minimum future rental income	$	6,608	$	6,187	$	3,943	$	3,370	$	3,026	$	10,002	$	33,136

The Authority is required to make payments under various operating leases for buildings, equipment and land at Mohegan Sun and Mohegan Sun at Pocono Downs. The Authority incurred rental expense totaling $11.4 million, $11.0 million and $12.6 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Minimum future rental expense that the Authority expects to incur under non-cancelable leases is as follows (in thousands):

	Fiscal Years Ending September 30,
	2015		2016		2017		2018		2019		Thereafter		Total
Minimum future rental expense	$	1,849	$	1,135	$	1,007	$	869	$	868	$	932	$	6,660

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RELATED PARTY TRANSACTIONS

12 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS:

Distributions to the Tribe totaled $50.0 million, $50.0 million and $53.0 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

The Tribe provides certain governmental and administrative services in connection with the operation of Mohegan Sun. The Authority incurred expenses for such services totaling $27.1 million, $26.8 million and $27.0 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

The Authority purchases most of its utilities, including electricity, gas, water and waste water services, from an instrumentality of the Tribe, the Mohegan Tribal Utility Authority. The Authority incurred costs for such utilities totaling $19.3 million, $17.8 million and $18.7 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

The Authority incurred interest expense associated with borrowings from the Mohegan Tribe totaling $2.3 million, $3.0 million and $2.5 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

As of September 30, 2013, outstanding payables to the Tribe totaled $808,000 and were included in "Current liabilities - Due to Mohegan Tribe" in the accompanying consolidated balance sheet as of September 30, 2013.

The Authority leases the land on which Mohegan Sun is located from the Tribe under a long-term lease agreement. The agreement requires the Authority to make a nominal annual rental payment. This lease has an initial term of 25 years and is renewable for an additional 25-year term upon expiration. In addition, in July 2008, the Authority entered into a land lease agreement with the Tribe, replacing a prior land lease agreement, relating to property located adjacent to the Tribe's reservation that is utilized by Mohegan Sun for employee parking. This agreement requires the Authority to make monthly payments equaling $75,000 until maturity on June 30, 2018. The Authority classified this lease as a capital lease for financial reporting purposes due to the existence of a bargain purchase option at the expiration of the lease.

In September 1995, the Tribe adopted the Mohegan Tribal Employment Rights Ordinance, as amended from time to time (the “TERO”), which sets forth hiring and contracting preference requirements for employers and entities conducting business on Tribal lands on or adjacent to the Mohegan Reservation. Pursuant to the TERO, the Authority and other covered employers are required to give hiring, promotion, training, retention and other employment-related preferences to Native Americans who meet the minimum qualifications for the applicable employment position. However, this preference requirement does not apply to key employees as such persons are defined under the TERO.

Similarly, any entity awarding a contract or subcontract valued up to $200,000 to be performed on Tribal lands must give preference, first, to certified Mohegan entities submitting commercially responsible bids, and second, to other certified Native American entities. This contracting preference is conditioned upon the bid by the preferred certified entity being within 5% of the lowest bid by a non-certified entity. Contracts in excess of $200,000 are awarded to the lowest commercially responsible bidder, on a competitive basis, with preference to certified Mohegan entities and then other certified Native American entities in the event of a matching bid. The TERO establishes procedures and requirements for certifying Mohegan entities and other Native American entities. Certification is based largely on the level of ownership and control exercised by the members of the Tribe or other Native American tribes, as the case may be, over the entity bidding on a contract.

As of September 30, 2014, the Authority employed approximately 125 membersof the Tribe.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES:

Slot Win and Free Promotional Slot Play Contributions

In May 1994, the Tribe and the State of Connecticut entered into a Memorandum of Understanding (“MOU”), which sets forth certain matters regarding implementation of the Mohegan Compact. The MOU stipulates that a portion of revenues from slot machines must be paid to the State of Connecticut (“Slot Win Contribution”). Slot Win Contribution payments are not required if the State of Connecticut legalizes any other gaming operation with slot machines, video facsimiles of games of chance or other commercial casino games within the State of Connecticut, except those consented to by the Tribe and the Mashantucket Pequot Tribe (the “MPT”). For each 12-month period commencing July 1, 1995, Slot Win Contribution payments shall be the lesser of: (1) 30% of gross revenues from slot machines or (2) the greater of (a) 25% of gross revenues from slot machines or (b) $80.0 million.

In September 2009, the Authority entered into a settlement agreement with the State of Connecticut regarding contribution payments on the Authority's free promotional slot play program. Under the terms of the settlement agreement, effective July 1, 2009, the State of Connecticut agreed that no value shall be attributed to free promotional slot plays utilized by patrons at Mohegan Sun for purposes of calculating monthly contribution payments, provided that the aggregate amount of free promotional slot plays during any month does not exceed a certain threshold of gross revenues from slot machines for such month. In the event free promotional slot plays granted by the Authority exceed such threshold, contribution payments are required on such excess face amount of free promotional slot plays at the same rate as Slot Win Contribution payments, or 25%. The threshold before contribution payments on free promotional slot plays are required is currently 11% of gross revenues from slot machines.

The Authority reflected expenses associated with the combined Slot Win Contribution and free promotional slot play contribution totaling $146.5 million, $155.8 million and $173.1 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, the combined outstanding Slot Win Contribution and free promotional slot play contribution totaled $11.6 million and $12.7 million, respectively.

Pennsylvania Slot Machine Tax

Downs Racing holds a Category One slot machine license issued by the PGCB for the operation of slot machines at Mohegan Sun at Pocono Downs. This license permits Downs Racing to install and operate up to 3,000 slot machines at Mohegan Sun at Pocono Downs, expandable to up to a total of 5,000 slot machines upon request and approval of the PGCB.

The Pennsylvania Race Horse Development and Gaming Act stipulates that holders of Category One slot machine licenses must pay a portion of revenues from slot machines to the PGCB on a daily basis (“Pennsylvania Slot Machine Tax”), which includes local share assessments to be paid to the cities and municipalities hosting Mohegan Sun at Pocono Downs and amounts to be paid to the Pennsylvania Harness Horsemen's Association, Inc. (the “PHHA”). The Pennsylvania Slot Machine Tax is currently 55% of gross revenues from slot machines, 2% of which is subject to a $10.0 million minimum annual threshold to ensure that the host cities and municipalities receive an annual minimum of $10.0 million in local share assessments. Downs Racing maintains a $1.5 million escrow deposit in the name of the Commonwealth of Pennsylvania for Pennsylvania Slot Machine Tax payments, which was included in other assets, net, in the accompanying consolidated balance sheets.

The Authority reflected expenses associated with the Pennsylvania Slot Machine Tax totaling $122.3 million, $124.0 million and $134.2 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, outstanding Pennsylvania Slot Machine Tax payments totaled $4.6 million and $5.5 million, respectively.

Pennsylvania Table Game Tax

In January 2010, the Commonwealth of Pennsylvania amended the Pennsylvania Race Horse Development and Gaming Act to allow slot machine operators in the Commonwealth of Pennsylvania to obtain a table game operation certificate and operate certain table games, including poker. Under the amended law, holders of table game operation certificates must pay a portion of revenues from table games to the PGCB on a weekly basis (“Pennsylvania Table Game Tax”). The Pennsylvania Table Game Tax is currently 12%, plus the 2% local share assessments.

The Authority reflected expenses associated with the Pennsylvania Table Game Tax totaling $6.3 million, $6.1 million and $6.8 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, outstanding Pennsylvania Table Game Tax payments totaled $156,000 and $127,000, respectively.

Pennsylvania Regulatory Fee

Slot machine licensees in the Commonwealth of Pennsylvania are required to reimburse state gaming regulatory agencies for various administrative and operating expenses (“Pennsylvania Regulatory Fee”) at a rate of 1.5% of gross revenues from slot machines and table games.

The Authority reflected expenses associated with the Pennsylvania Regulatory Fee totaling $4.7 million, $4.2 million and $5.1 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014 and 2013, outstanding Pennsylvania Regulatory Fee payments to the PGCB totaled $147,000 and $132,000, respectively.

Pennsylvania Gaming Control Board Loans

The PGCB was initially granted $36.1 million in loans to fund start-up costs for gaming in the Commonwealth of Pennsylvania, which are to be repaid by slot machine licensees (the "Initial Loans"). The PGCB was subsequently granted an additional $63.8 million in loans to fund ongoing gaming oversight costs, which also are to be repaid by slot machine licensees (the "Subsequent Loans"). Repayment of the Initial Loans will commence when all 14 authorized gaming facilities are opened in the Commonwealth of Pennsylvania. Currently, 12 of the 14 authorized gaming facilities have commenced operations. As of September 30, 2014, the Authority has concluded that a repayment contingency for the Initial Loans is probable but not reasonably estimable since the PGCB has not yet established a method of assessment of repayment for the Initial Loans and, as such, the Authority has not recorded a related accrual for such repayment. In June 2011, the PGCB adopted a method of assessment of repayment for the Subsequent Loans pursuant to which repayment commenced on January 1, 2012 and will continue over a 10-year period in accordance with a formula based on a combination of a single fiscal year and cumulative gross revenues from slot machines for each operating slot machine licensee.

The Authority reflected expenses associated with this repayment schedule totaling $638,000, $633,000 and $659,000 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

Horsemen’s Agreement

Downs Racing and the PHHA are parties to an agreement that governs all live harness racing and simulcasting and account wagering at the Pennsylvania Facilities through December 31, 2014. As of September 30, 2014 and 2013, outstanding payments to the PHHA for purses earned by horsemen, but not yet paid, and other fees totaled $8.1 million and $7.8 million, respectively.

Priority Distribution Agreement

In August 2001, the Authority and the Tribe entered into an agreement (the “Priority Distribution Agreement”), which stipulates that the Authority must make monthly payments to the Tribe to the extent of the Authority's Net Cash Flow, as defined under the Priority Distribution Agreement. The Priority Distribution Agreement, which has a perpetual term, limits the maximum aggregate priority distribution payments in each calendar year to $14.0 million, as adjusted annually in accordance with a formula specified in the Priority Distribution Agreement to reflect the effects of inflation. Payments under the Priority Distribution Agreement: (1) do not reduce the Authority's obligations to reimburse the Tribe for governmental and administrative services provided by the Tribe or to make payments under any other agreements with the Tribe, (2) are limited obligations of the Authority and are payable only to the extent of the Authority's Net Cash Flow, as defined under the Priority Distribution Agreement and (3) are not secured by a lien or encumbrance on any of the Authority's assets or properties.

The Authority reflected payments associated with the Priority Distribution Agreement totaling $19.5 million, $19.2 million and $18.8 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

Town of Montville Agreement

In June 1994, the Tribe entered into an agreement with the Town of Montville (the “Town”) under which the Tribe agreed to pay the Town $500,000 annually to minimize the impact of Tribe’s reservation being held in trust on the Town. The Tribe has assigned its rights and obligations under this agreement to the Authority.

Land Lease Agreement

The land upon which Mohegan Sun is located is held in trust for the Tribe by the United States. The Authority entered into a land lease agreement with the Tribe to lease the property and improvements and related facilities constructed or installed on the property. In March 2007, the agreement was amended to update the legal description of the property, and, in April 2007, the amended agreement was approved by the Secretary of the Interior. The following summarizes the key provisions of the land lease agreement:

Term

The term of the agreement is 25 years with an option, exercisable by the Authority, to extend the term for one additional 25-year period. Upon termination of the agreement, the Authority will be required to surrender to the Tribe possession of the property and improvements, excluding any equipment, furniture, fixtures or other personal property.

Rent and Other Operating Costs and Expenses

The agreement requires the Authority to pay the Tribe a nominal annual rental fee. For any period that the Tribe or another agency or instrumentality of the Tribe is not the tenant, the rent will be 8% of such tenant’s gross revenues from the property. The Authority is responsible for all costs and expenses of owning, operating, constructing, maintaining, repairing, replacing and insuring the property.

Use of Property

The Authority may utilize the property and improvements solely for the operation of Mohegan Sun, unless prior approval is obtained from the Tribe for any proposed alternative use. The Authority may not construct or alter any building or improvement located on the property unless complete and final plans and specifications are approved by the Tribe. Following foreclosure of any mortgage on the Authority’s interest under the agreement or any transfer of such interest to the holder of such mortgage in lieu of foreclosure, the property and improvements may be utilized for any lawful purpose, subject to applicable codes and governmental regulations; provided, however, that a non-Indian holder of the property may under no circumstance conduct gaming operations on the property.

Permitted Mortgages and Rights of Permitted Mortgagees

The Authority may not mortgage, pledge or otherwise encumber its leasehold estate in the property except to a holder of a permitted mortgage. Under the terms of the agreement, permitted mortgages include the leasehold mortgage securing the Authority’s senior secured indebtedness, provided that, among other things: (1) the Tribe will have the right to notice of, and to cure, any default of the Authority, (2) the Tribe will have the right to prior notice of an intention by the holder to foreclose on the permitted mortgage and the right to purchase the mortgage in lieu of any foreclosure and (3) the permitted mortgage is subject and subordinated to any and all access and utility easements granted by the Tribe under the agreement. Under the terms of the agreement, each holder of a permitted mortgage has the right to notice of any default of the Authority under the agreement and the opportunity to cure such default within the applicable cure period.

Default Remedies

The Authority will be in default under the agreement if, subject to the notice provisions, it fails to make lease payments or comply with covenants under the agreement or if it pledges, encumbers or conveys its interest in violation of the terms of the agreement. Following a default, the Tribe may, with approval from the Secretary of the Interior, terminate the agreement unless a permitted mortgage remains outstanding with respect to the property. In such case, the Tribe may not: (1) terminate the agreement or the Authority’s right to possession of the property, (2) exercise any right of re-entry, (3) take possession of and/or relet the property or any portion thereof or (4) enforce any other right or remedy, which may materially and adversely affect the rights of the holder of the permitted mortgage, unless the default triggering such rights was a monetary default of which such holder failed to cure after notice.

Litigation

The Authority is a defendant in various litigation matters resulting from its normal course of business. In management's opinion, the aggregate liability, if any, arising from such litigations will not have a material impact on the Authority's financial position, results of operations or cash flows.

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SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION - STATEMENTS OF CASH FLOWS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2010
Cash flows provided by (used in) operating activities:
Net income (loss)	$ (24,558)		$ 47,542		$ 61,241
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	80,126		80,317		85,030
Relinquishment liability reassessment	(1,905)		(249)		(11,439)
Accretion of discount to the relinquishment liability	2,205		4,974		8,248
Cash paid for accretion of discount to the relinquishment liability	(2,897)		(5,792)		(9,028)
Loss on early extinguishment of debt	58,245		4,531
Payments of tender offer costs and discounts	(48,155)		(3,104)		0
Amortization of debt issuance costs and accretion of bond discounts	8,037		12,285		9,987
Amortization of net deferred gain on settlement of derivative instruments	0		(76)		(255)
Provision for losses on receivables	6,146		3,436		3,189
Impairment of Project Horizon	4,981		0		0		58,100
(Gain) loss on disposition of assets	(9)		241		353
(Gain) loss from unconsolidated affiliates	826		1,553		0
Intercompany transactions	0		0
Changes in operating assets and liabilities:
Increase in receivables	(7,159)		(648)		(7,676)
(Increase) decrease in inventories	(554)		448		(410)
(Increase) decrease in other assets	(3,531)		2,759		(4,859)
Increase (decrease) in trade payables	13,419		(2,143)		(4,778)
Increase (decrease) in accrued interest	(14,637)		(23,066)		17,782
Increase (decrease) in other liabilities	2,436		(20,057)		15,286
Net cash flows provided by (used in) operating activities	73,016		102,951		176,997
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(35,079)		(59,597)		(47,471)
Issuance of third-party loans and advances	(1,804)		(2,033)		(923)
Payments received on third-party loans	644		139		146
(Increase) decrease in restricted cash, net	13,679		33,078		(45,231)
Proceeds from asset sales	134		216		143
Investments in unconsolidated affiliates	(29)		(4,971)		0
Intercompany transactions	0		0
Other cash flows provided by (used in) investing activities					1,366
Net cash flows provided by (used in) investing activities	(22,455)		(33,168)		(91,336)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term					(3,000)
Line of Credit repayments					(225,215)
Line of Credit borrowings					225,215
Repayments to Mohegan Tribe	(3,250)		(9,950)		0
Repayments of other long-term debt	(212,323)		(495,601)		(66,454)
Principal portion of relinquishment liability payments	(46,574)		(45,350)		(45,258)
Distributions to Mohegan Tribe	(50,000)		(50,000)		(52,950)
Payments of financing fees	(12,395)		(11,957)		(51,513)
Payments on capital lease obligations	(2,168)		(3,385)		(706)
Prior Bank Credit Facility borrowings - Revolving					154,000
Prior Bank Credit Facility repayments - Revolving					(289,000)
Proceeds from issuance of Senior Unsecured Notes			500,000
Prior Term Loan Facility borrowings, net of discount					220,500
Borrowings from Mohegan Tribe	0		0		20,600
Repayments of other long-term debt					(66,454)
Salishan-Mohegan Bank Credit Facility repayments -Revolving	0		0		(15,250)
Downs Lodging Credit Facility borrowings - Term					45,000
Intercompany transactions	0		0
Other cash flows provided by (used in) financing activities					(426)
Net cash flows provided by (used in) financing activities	(65,077)		(120,243)		(83,751)
Net decrease in cash and cash equivalents	(14,516)		(50,460)		1,910
Cash and cash equivalents at beginning of year	63,624		114,084		112,174
Cash and cash equivalents at end of year	49,108		63,624		114,084
Authority
Cash flows provided by (used in) operating activities:
Net income (loss)	(24,178)		50,326		63,260
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	65,406		67,097		68,666
Relinquishment liability reassessment	(1,905)		(249)		(11,439)
Accretion of discount to the relinquishment liability	2,205		4,974		8,248
Cash paid for accretion of discount to the relinquishment liability	(2,897)		(5,792)
Loss on early extinguishment of debt	58,245		4,531
Payments of tender offer costs and discounts	(48,155)		(3,104)
Amortization of debt issuance costs and accretion of bond discounts	7,719		11,968
Amortization of net deferred gain on settlement of derivative instruments			(76)
Provision for losses on receivables	2,368		951
Impairment of Project Horizon	4,981
(Gain) loss on disposition of assets	(12)		222
(Gain) loss from unconsolidated affiliates	(178)		(11)
Intercompany transactions	(9,896)		(30,508)
Changes in operating assets and liabilities:
Increase in receivables	(6,622)		495
(Increase) decrease in inventories	(411)		326
(Increase) decrease in other assets	3,236		8,255
Increase (decrease) in trade payables	9,858		(2,367)
Increase (decrease) in accrued interest	(12,891)		(23,183)
Increase (decrease) in other liabilities	(4,587)		(21,440)
Net cash flows provided by (used in) operating activities	42,286		62,415		122,057
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(18,629)		(24,774)		(37,523)
Issuance of third-party loans and advances	0		0
Payments received on third-party loans	644		139
(Increase) decrease in restricted cash, net	53		0		0
Proceeds from asset sales	104		208
Investments in unconsolidated affiliates	0		0
Intercompany transactions	27,195		24,289
Other cash flows provided by (used in) investing activities					53,718
Net cash flows provided by (used in) investing activities	9,367		(138)		16,195
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term					(3,000)
Line of Credit repayments					(225,215)
Line of Credit borrowings					225,215
Repayments to Mohegan Tribe	0		0
Repayments of other long-term debt	(212,270)		(495,561)
Principal portion of relinquishment liability payments	(46,574)		(45,350)		(45,258)
Distributions to Mohegan Tribe	(50,000)		(50,000)		(52,950)
Payments of financing fees	(12,395)		(11,757)		(50,440)
Payments on capital lease obligations	(2,168)		(3,385)
Prior Bank Credit Facility borrowings - Revolving					154,000
Prior Bank Credit Facility repayments - Revolving					(289,000)
Proceeds from issuance of Senior Unsecured Notes			500,000
Prior Term Loan Facility borrowings, net of discount					220,500
Borrowings from Mohegan Tribe					0
Repayments of other long-term debt					(66,454)
Salishan-Mohegan Bank Credit Facility repayments -Revolving					0
Downs Lodging Credit Facility borrowings - Term					0
Intercompany transactions	0		0
Other cash flows provided by (used in) financing activities					(2,832)
Net cash flows provided by (used in) financing activities	(61,774)		(110,053)		(135,434)
Net decrease in cash and cash equivalents	(10,121)		(47,776)		2,818
Cash and cash equivalents at beginning of year	44,060		91,836		89,018
Cash and cash equivalents at end of year	33,939		44,060		91,836
Total Guarantor Subsidiaries
Cash flows provided by (used in) operating activities:
Net income (loss)	(27,577)	[1]	(6,704)	[1]	(29,047)	[1]
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	13,814	[1]	13,220	[1]	16,364	[1]
Relinquishment liability reassessment	0	[1]	0	[1]	0	[1]
Accretion of discount to the relinquishment liability	0	[1]	0	[1]	0	[1]
Cash paid for accretion of discount to the relinquishment liability	0	[1]	0	[1]
Loss on early extinguishment of debt	0	[1]	0	[1]
Payments of tender offer costs and discounts	0	[1]	0	[1]
Amortization of debt issuance costs and accretion of bond discounts	0	[1]	0	[1]
Amortization of net deferred gain on settlement of derivative instruments			0	[1]
Provision for losses on receivables	390	[1]	103	[1]
Impairment of Project Horizon	0	[1]
(Gain) loss on disposition of assets	3	[1]	19	[1]
(Gain) loss from unconsolidated affiliates	0	[1]	0	[1]
Intercompany transactions	62,401	[1]	49,282	[1]
Changes in operating assets and liabilities:
Increase in receivables	(310)	[1]	(1,011)	[1]
(Increase) decrease in inventories	(143)	[1]	122	[1]
(Increase) decrease in other assets	(77)	[1]	41	[1]
Increase (decrease) in trade payables	3,568	[1]	265	[1]
Increase (decrease) in accrued interest	0	[1]	0	[1]
Increase (decrease) in other liabilities	(573)	[1]	(773)	[1]
Net cash flows provided by (used in) operating activities	51,496	[1]	54,564	[1]	59,240	[1]
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(4,250)	[1]	(4,481)	[1]	(7,175)	[1]
Issuance of third-party loans and advances	0	[1]	0	[1]
Payments received on third-party loans	0	[1]	0	[1]
(Increase) decrease in restricted cash, net	1,583	[1]	(423)	[1]	313	[1]
Proceeds from asset sales	30	[1]	8	[1]
Investments in unconsolidated affiliates	0	[1]	0	[1]
Intercompany transactions	(24,222)	[1]	(22,468)	[1]
Other cash flows provided by (used in) investing activities					3,372	[1]
Net cash flows provided by (used in) investing activities	(26,859)	[1]	(27,364)	[1]	(3,490)	[1]
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term					0	[1]
Line of Credit repayments					0	[1]
Line of Credit borrowings					0	[1]
Repayments to Mohegan Tribe	0	[1]	0	[1]
Repayments of other long-term debt	0	[1]	0	[1]
Principal portion of relinquishment liability payments	0	[1]	0	[1]	0	[1]
Distributions to Mohegan Tribe	0	[1]	0	[1]	0	[1]
Payments of financing fees	0	[1]	0	[1]	0	[1]
Payments on capital lease obligations	(45)	[1]	0	[1]
Prior Bank Credit Facility borrowings - Revolving					0	[1]
Prior Bank Credit Facility repayments - Revolving					0	[1]
Proceeds from issuance of Senior Unsecured Notes			0	[1]
Prior Term Loan Facility borrowings, net of discount					0	[1]
Borrowings from Mohegan Tribe					0	[1]
Repayments of other long-term debt					0	[1]
Salishan-Mohegan Bank Credit Facility repayments -Revolving					0	[1]
Downs Lodging Credit Facility borrowings - Term					0	[1]
Intercompany transactions	(28,480)	[1]	(30,302)	[1]
Other cash flows provided by (used in) financing activities					(56,924)	[1]
Net cash flows provided by (used in) financing activities	(28,525)	[1]	(30,302)	[1]	(56,924)	[1]
Net decrease in cash and cash equivalents	(3,888)	[1]	(3,102)	[1]	(1,174)	[1]
Cash and cash equivalents at beginning of year	18,655	[1]	21,757	[1]	22,931	[1]
Cash and cash equivalents at end of year	14,767	[1]	18,655	[1]	21,757	[1]
Total Non Guarantor Entities
Cash flows provided by (used in) operating activities:
Net income (loss)	(30,100)	[2]	(17,303)	[2]	(5,204)	[2]
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	906	[2]	0	[2]	0	[2]
Relinquishment liability reassessment	0	[2]	0	[2]	0	[2]
Accretion of discount to the relinquishment liability	0	[2]	0	[2]	0	[2]
Cash paid for accretion of discount to the relinquishment liability	0	[2]	0	[2]
Loss on early extinguishment of debt	0	[2]	0	[2]
Payments of tender offer costs and discounts	0	[2]	0	[2]
Amortization of debt issuance costs and accretion of bond discounts	318	[2]	317	[2]
Amortization of net deferred gain on settlement of derivative instruments			0	[2]
Provision for losses on receivables	3,388	[2]	2,382	[2]
Impairment of Project Horizon	0	[2]
(Gain) loss on disposition of assets	0	[2]	0	[2]
(Gain) loss from unconsolidated affiliates	1,004	[2]	1,564	[2]
Intercompany transactions	4,783	[2]	2,449	[2]
Changes in operating assets and liabilities:
Increase in receivables	(1,783)	[2]	(132)	[2]
(Increase) decrease in inventories	0	[2]	0	[2]
(Increase) decrease in other assets	(5,888)	[2]	(5,537)	[2]
Increase (decrease) in trade payables	(7)	[2]	(41)	[2]
Increase (decrease) in accrued interest	(1,746)	[2]	117	[2]
Increase (decrease) in other liabilities	8,359	[2]	2,156	[2]
Net cash flows provided by (used in) operating activities	(20,766)	[2]	(14,028)	[2]	(4,300)	[2]
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	(12,200)	[2]	(30,342)	[2]	(2,773)	[2]
Issuance of third-party loans and advances	(1,804)	[2]	(2,033)	[2]
Payments received on third-party loans	0	[2]	0	[2]
(Increase) decrease in restricted cash, net	12,043	[2]	33,501	[2]	(45,544)	[2]
Proceeds from asset sales	0	[2]	0	[2]
Investments in unconsolidated affiliates	(29)	[2]	(4,971)	[2]
Intercompany transactions	45	[2]	0	[2]
Other cash flows provided by (used in) investing activities					(902)	[2]
Net cash flows provided by (used in) investing activities	(1,945)	[2]	(3,845)	[2]	(49,219)	[2]
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term					0	[2]
Line of Credit repayments					0	[2]
Line of Credit borrowings					0	[2]
Repayments to Mohegan Tribe	(3,250)	[2]	(9,950)	[2]
Repayments of other long-term debt	(53)	[2]	(40)	[2]
Principal portion of relinquishment liability payments	0	[2]	0	[2]	0	[2]
Distributions to Mohegan Tribe	0	[2]	0	[2]	0	[2]
Payments of financing fees	0	[2]	(200)	[2]	(1,073)	[2]
Payments on capital lease obligations	0	[2]	0	[2]
Prior Bank Credit Facility borrowings - Revolving					0	[2]
Prior Bank Credit Facility repayments - Revolving					0	[2]
Proceeds from issuance of Senior Unsecured Notes			0	[2]
Prior Term Loan Facility borrowings, net of discount					0	[2]
Borrowings from Mohegan Tribe					20,600	[2]
Repayments of other long-term debt					0	[2]
Salishan-Mohegan Bank Credit Facility repayments -Revolving					(15,250)	[2]
Downs Lodging Credit Facility borrowings - Term					45,000	[2]
Intercompany transactions	25,507	[2]	28,481	[2]
Other cash flows provided by (used in) financing activities					4,508	[2]
Net cash flows provided by (used in) financing activities	22,204	[2]	18,291	[2]	53,785	[2]
Net decrease in cash and cash equivalents	(507)	[2]	418	[2]	266	[2]
Cash and cash equivalents at beginning of year	909	[2]	491	[2]	225	[2]
Cash and cash equivalents at end of year	402	[2]	909	[2]	491	[2]
Consolidating/Eliminating Adjustments
Cash flows provided by (used in) operating activities:
Net income (loss)	57,297		21,223		32,232
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	0		0		0
Relinquishment liability reassessment	0		0		0
Accretion of discount to the relinquishment liability	0		0		0
Cash paid for accretion of discount to the relinquishment liability	0		0
Loss on early extinguishment of debt	0		0
Payments of tender offer costs and discounts	0		0
Amortization of debt issuance costs and accretion of bond discounts	0		0
Amortization of net deferred gain on settlement of derivative instruments			0
Provision for losses on receivables	0		0
Impairment of Project Horizon	0
(Gain) loss on disposition of assets	0		0
(Gain) loss from unconsolidated affiliates	0		0
Intercompany transactions	(57,288)		(21,223)
Changes in operating assets and liabilities:
Increase in receivables	1,556		0
(Increase) decrease in inventories	0		0
(Increase) decrease in other assets	(802)		0
Increase (decrease) in trade payables	0		0
Increase (decrease) in accrued interest	0		0
Increase (decrease) in other liabilities	(763)		0
Net cash flows provided by (used in) operating activities	0		0		0
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of change in construction payables	0		0		0
Issuance of third-party loans and advances	0		0
Payments received on third-party loans	0		0
(Increase) decrease in restricted cash, net	0		0		0
Proceeds from asset sales	0		0
Investments in unconsolidated affiliates	0		0
Intercompany transactions	(3,018)		(1,821)
Other cash flows provided by (used in) investing activities					(54,822)
Net cash flows provided by (used in) investing activities	(3,018)		(1,821)		(54,822)
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term					0
Line of Credit repayments					0
Line of Credit borrowings					0
Repayments to Mohegan Tribe	0		0
Repayments of other long-term debt	0		0
Principal portion of relinquishment liability payments	0		0		0
Distributions to Mohegan Tribe	0		0		0
Payments of financing fees	0		0		0
Payments on capital lease obligations	45		0
Prior Bank Credit Facility borrowings - Revolving					0
Prior Bank Credit Facility repayments - Revolving					0
Proceeds from issuance of Senior Unsecured Notes			0
Prior Term Loan Facility borrowings, net of discount					0
Borrowings from Mohegan Tribe					0
Repayments of other long-term debt					0
Salishan-Mohegan Bank Credit Facility repayments -Revolving					0
Downs Lodging Credit Facility borrowings - Term					0
Intercompany transactions	2,973		1,821
Other cash flows provided by (used in) financing activities					54,822
Net cash flows provided by (used in) financing activities	3,018		1,821		54,822
Net decrease in cash and cash equivalents	0		0		0
Cash and cash equivalents at beginning of year	0		0		0
Cash and cash equivalents at end of year	0		0		0
Credit Facility | Prior Bank Credit Facility - Revolving
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0		(3,000)		(289,000)
Line of Credit borrowings	0		3,000		154,000
Prior Bank Credit Facility borrowings - Revolving			3,000
Prior Bank Credit Facility repayments - Revolving			(3,000)
Credit Facility | Prior Bank Credit Facility - Revolving | Authority
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving			3,000
Prior Bank Credit Facility repayments - Revolving			(3,000)
Credit Facility | Prior Bank Credit Facility - Revolving | Total Guarantor Subsidiaries
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving			0	[1]
Prior Bank Credit Facility repayments - Revolving			0	[1]
Credit Facility | Prior Bank Credit Facility - Revolving | Total Non Guarantor Entities
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving			0	[2]
Prior Bank Credit Facility repayments - Revolving			0	[2]
Credit Facility | Prior Bank Credit Facility - Revolving | Consolidating/Eliminating Adjustments
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility borrowings - Revolving			0
Prior Bank Credit Facility repayments - Revolving			0
Credit Facility | Prior Bank Credit Facility - Term Loan
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	(393,000)		(4,000)
Line of Credit repayments	(393,000)		(4,000)		(3,000)
Credit Facility | Prior Bank Credit Facility - Term Loan | Authority
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	(393,000)		(4,000)
Credit Facility | Prior Bank Credit Facility - Term Loan | Total Guarantor Subsidiaries
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	0	[1]	0	[1]
Credit Facility | Prior Bank Credit Facility - Term Loan | Total Non Guarantor Entities
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	0	[2]	0	[2]
Credit Facility | Prior Bank Credit Facility - Term Loan | Consolidating/Eliminating Adjustments
Cash flows provided by (used in) financing activities:
Prior Bank Credit Facility repayments - Term	0		0
Credit Facility | Prior Term Loan Facility
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(222,103)		0		0
Line of Credit borrowings	0		0		220,500
Credit Facility | Prior Term Loan Facility | Authority
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(222,103)
Credit Facility | Prior Term Loan Facility | Total Guarantor Subsidiaries
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[1]
Credit Facility | Prior Term Loan Facility | Total Non Guarantor Entities
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[2]
Credit Facility | Prior Term Loan Facility | Consolidating/Eliminating Adjustments
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0
Credit Facility | Senior Secured Credit Facility - Revolving
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(273,000)		0		0
Line of Credit borrowings	310,000		0		0
Credit Facility | Senior Secured Credit Facility - Revolving | Authority
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(273,000)
Line of Credit borrowings	310,000
Credit Facility | Senior Secured Credit Facility - Revolving | Total Guarantor Subsidiaries
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[1]
Line of Credit borrowings	0	[1]
Credit Facility | Senior Secured Credit Facility - Revolving | Total Non Guarantor Entities
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[2]
Line of Credit borrowings	0	[2]
Credit Facility | Senior Secured Credit Facility - Revolving | Consolidating/Eliminating Adjustments
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0
Line of Credit borrowings	0
Credit Facility | Senior Secured Credit Facility - Term Loan A
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(3,125)		0		0
Line of Credit borrowings	124,343		0		0
Credit Facility | Senior Secured Credit Facility - Term Loan A | Authority
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(3,125)
Line of Credit borrowings	124,343
Credit Facility | Senior Secured Credit Facility - Term Loan A | Total Guarantor Subsidiaries
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[1]
Line of Credit borrowings	0	[1]
Credit Facility | Senior Secured Credit Facility - Term Loan A | Total Non Guarantor Entities
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[2]
Line of Credit borrowings	0	[2]
Credit Facility | Senior Secured Credit Facility - Term Loan A | Consolidating/Eliminating Adjustments
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0
Line of Credit borrowings	0
Credit Facility | Senior Secured Credit Facility - Term Loan B
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(5,475)		0		0
Line of Credit borrowings	720,952		0		0
Credit Facility | Senior Secured Credit Facility - Term Loan B | Authority
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(5,475)
Line of Credit borrowings	720,952
Credit Facility | Senior Secured Credit Facility - Term Loan B | Total Guarantor Subsidiaries
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[1]
Line of Credit borrowings	0	[1]
Credit Facility | Senior Secured Credit Facility - Term Loan B | Total Non Guarantor Entities
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[2]
Line of Credit borrowings	0	[2]
Credit Facility | Senior Secured Credit Facility - Term Loan B | Consolidating/Eliminating Adjustments
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0
Line of Credit borrowings	0
Credit Facility | Bank of America, N.A. Line of Credit
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(353,755)		(24,897)		(225,215)
Line of Credit borrowings	356,796		24,897		225,215
Credit Facility | Bank of America, N.A. Line of Credit | Authority
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(353,755)		(24,897)
Line of Credit borrowings	356,796		24,897
Credit Facility | Bank of America, N.A. Line of Credit | Total Guarantor Subsidiaries
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[1]	0	[1]
Line of Credit borrowings	0	[1]	0	[1]
Credit Facility | Bank of America, N.A. Line of Credit | Total Non Guarantor Entities
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0	[2]	0	[2]
Line of Credit borrowings	0	[2]	0	[2]
Credit Facility | Bank of America, N.A. Line of Credit | Consolidating/Eliminating Adjustments
Cash flows provided by (used in) financing activities:
Line of Credit repayments	0		0
Line of Credit borrowings	$ 0		$ 0

[1] Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

[2] Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

XML

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENT INFORMATION - STATEMENTS OF INCOME (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2010
Revenues:
Gaming	$ 1,133,563		$ 1,190,202		$ 1,254,558
Food and beverage	91,655		86,251		92,149
Hotel	47,310		40,873		39,609
Retail, entertainment and other	119,134		118,559		112,194
Gross revenues	1,391,662		1,435,885		1,498,510
Less-Promotional allowances	(98,944)		(95,857)		(99,197)
Net revenues	1,292,718		1,340,028		1,399,313
Operating costs and expenses:
Gaming	687,021		708,929		771,909
Food and beverage	41,482		41,575		44,949
Hotel	15,807		14,339		14,293
Retail, entertainment and other	50,945		43,859		40,723
Gaming and other operations					871,874
Advertising, general and administrative	190,639		192,673		198,171
Corporate	41,036		28,122		17,379
Advertising, general and administrative					215,550
Depreciation and amortization	80,126		80,317		85,030
(Gain) loss on disposition of assets	(9)		241		353
Severance	0		29		12,521
Pre-opening	1,187		687		0
Impairment of Project Horizon	4,981		0		0		58,100
Relinquishment liability reassessment	(1,905)		(249)		(11,439)
Total operating costs and expenses	1,111,310		1,110,522		1,173,889
Income (loss) from operations	181,408		229,506		225,424
Other income (expense):
Accretion of discount to the relinquishment liability	(2,205)		(4,974)		(8,248)
Interest income	7,066		6,271		4,492
Interest expense, net of capitalized interest	(147,933)		(170,150)		(146,057)
Loss on early extinguishment of debt	(62,041)		(11,516)		(14,326)
Loss on interests in subsidiaries	0		0		0
Other income (expense), net	(853)		(1,595)		(44)
Other income, net					4,448
Total other expense	(205,966)		(181,964)		(164,183)
Net income (loss)	(24,558)		47,542		61,241
Loss attributable to non-controlling interests	380		2,784		2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	(24,178)		50,326		63,260
Authority
Revenues:
Gaming	858,780		911,180
Food and beverage	62,273		59,334
Hotel	42,921		40,873
Retail, entertainment and other	101,506		100,545
Gross revenues	1,065,480		1,111,932
Less-Promotional allowances	(76,618)		(76,407)
Net revenues	988,862		1,035,525		1,079,411
Operating costs and expenses:
Gaming	488,293		507,069
Food and beverage	32,348		33,297
Hotel	15,287		14,339
Retail, entertainment and other	45,876		40,371
Gaming and other operations					643,557
Advertising, general and administrative	155,668		159,869
Corporate	13,276		14,841
Advertising, general and administrative					177,486
Depreciation and amortization	65,406		67,097		68,666
(Gain) loss on disposition of assets	(12)		222		68
Severance			(146)		12,521
Pre-opening	0		0
Impairment of Project Horizon	4,981
Relinquishment liability reassessment	(1,905)		(249)		(11,439)
Total operating costs and expenses	819,218		836,710		890,859
Income (loss) from operations	169,644		198,815		188,552
Other income (expense):
Accretion of discount to the relinquishment liability	(2,205)		(4,974)		(8,248)
Interest income	88		146
Interest expense, net of capitalized interest	(97,380)		(118,303)		(72,520)
Loss on early extinguishment of debt	(62,041)		(11,516)		(14,326)
Loss on interests in subsidiaries	(32,449)		(13,834)		(30,498)
Other income (expense), net	165		(8)
Other income, net					300
Total other expense	(193,822)		(148,489)
Net income (loss)	(24,178)		50,326		63,260
Loss attributable to non-controlling interests	0		0		0
Net income (loss) attributable to Mohegan Tribal Gaming Authority	(24,178)		50,326		63,260
Total Guarantor Subsidiaries
Revenues:
Gaming	274,783	[1]	279,022	[1]
Food and beverage	29,382	[1]	26,917	[1]
Hotel	4,389	[1]	0	[1]
Retail, entertainment and other	16,515	[1]	16,679	[1]
Gross revenues	325,069	[1]	322,618	[1]
Less-Promotional allowances	(20,567)	[1]	(17,300)	[1]
Net revenues	304,502	[1]	305,318	[1]	321,563	[1]
Operating costs and expenses:
Gaming	198,728	[1]	201,860	[1]
Food and beverage	9,134	[1]	8,280	[1]
Hotel	4,631	[1]	0	[1]
Retail, entertainment and other	6,780	[1]	5,589	[1]
Gaming and other operations					230,263	[1]
Advertising, general and administrative	35,075	[1]	32,997	[1]
Corporate	0	[1]	0	[1]
Advertising, general and administrative					33,272	[1]
Depreciation and amortization	13,814	[1]	13,220	[1]	16,364	[1]
(Gain) loss on disposition of assets	3	[1]	19	[1]	285	[1]
Severance			175	[1]	0	[1]
Pre-opening	1,187	[1]	687	[1]
Impairment of Project Horizon	0	[1]
Relinquishment liability reassessment	0	[1]	0	[1]	0	[1]
Total operating costs and expenses	269,352	[1]	262,827	[1]	280,184	[1]
Income (loss) from operations	35,150	[1]	42,491	[1]	41,379	[1]
Other income (expense):
Accretion of discount to the relinquishment liability	0	[1]	0	[1]	0	[1]
Interest income	4,704	[1]	2,320	[1]
Interest expense, net of capitalized interest	(42,583)	[1]	(44,126)	[1]	(69,533)	[1]
Loss on early extinguishment of debt	0	[1]	0	[1]	0	[1]
Loss on interests in subsidiaries	(24,848)	[1]	(7,389)	[1]	(1,944)	[1]
Other income (expense), net	0	[1]	0	[1]
Other income, net					1,051	[1]
Total other expense	(62,727)	[1]	(49,195)	[1]
Net income (loss)	(27,577)	[1]	(6,704)	[1]	(29,047)	[1]
Loss attributable to non-controlling interests	0	[1]	0	[1]	0	[1]
Net income (loss) attributable to Mohegan Tribal Gaming Authority	(27,577)	[1]	(6,704)	[1]	(29,047)	[1]
Total Non Guarantor Entities
Revenues:
Gaming	0	[2]	0	[2]
Food and beverage	0	[2]	0	[2]
Hotel	0	[2]	0	[2]
Retail, entertainment and other	5,464	[2]	1,575	[2]
Gross revenues	5,464	[2]	1,575	[2]
Less-Promotional allowances	(17)	[2]	(4)	[2]
Net revenues	5,447	[2]	1,571	[2]	285	[2]
Operating costs and expenses:
Gaming	0	[2]	0	[2]
Food and beverage	0	[2]	(2)	[2]
Hotel	0	[2]	0	[2]
Retail, entertainment and other	0	[2]	0	[2]
Gaming and other operations					0	[2]
Advertising, general and administrative	27,927	[2]	13,373	[2]
Corporate	0	[2]	0	[2]
Advertising, general and administrative					4,582	[2]
Depreciation and amortization	906	[2]	0	[2]	0	[2]
(Gain) loss on disposition of assets	0	[2]	0	[2]	0	[2]
Severance			0	[2]	0	[2]
Pre-opening	0	[2]	0	[2]
Impairment of Project Horizon	0	[2]
Relinquishment liability reassessment	0	[2]	0	[2]	0	[2]
Total operating costs and expenses	28,833	[2]	13,371	[2]	4,582	[2]
Income (loss) from operations	(23,386)	[2]	(11,800)	[2]	(4,297)	[2]
Other income (expense):
Accretion of discount to the relinquishment liability	0	[2]	0	[2]	0	[2]
Interest income	7,306	[2]	6,064	[2]
Interest expense, net of capitalized interest	(13,002)	[2]	(9,980)	[2]	(4,979)	[2]
Loss on early extinguishment of debt	0	[2]	0	[2]	0	[2]
Loss on interests in subsidiaries	0	[2]	0	[2]	0	[2]
Other income (expense), net	(1,018)	[2]	(1,587)	[2]
Other income, net					4,072	[2]
Total other expense	(6,714)	[2]	(5,503)	[2]
Net income (loss)	(30,100)	[2]	(17,303)	[2]	(5,204)	[2]
Loss attributable to non-controlling interests	0	[2]	0	[2]	0	[2]
Net income (loss) attributable to Mohegan Tribal Gaming Authority	(30,100)	[2]	(17,303)	[2]	(5,204)	[2]
Consolidating/Eliminating Adjustments
Revenues:
Gaming	0		0
Food and beverage	0		0
Hotel	0		0
Retail, entertainment and other	(4,351)		(240)
Gross revenues	(4,351)		(240)
Less-Promotional allowances	(1,742)		(2,146)
Net revenues	(6,093)		(2,386)		(1,946)
Operating costs and expenses:
Gaming	0		0
Food and beverage	0		0
Hotel	(4,111)		0
Retail, entertainment and other	(1,711)		(2,101)
Gaming and other operations					(1,946)
Advertising, general and administrative	(28,031)		(13,566)
Corporate	27,760		13,281
Advertising, general and administrative					210
Depreciation and amortization	0		0		0
(Gain) loss on disposition of assets	0		0		0
Severance			0		0
Pre-opening	0		0
Impairment of Project Horizon	0
Relinquishment liability reassessment	0		0		0
Total operating costs and expenses	(6,093)		(2,386)		(1,736)
Income (loss) from operations	0		0		(210)
Other income (expense):
Accretion of discount to the relinquishment liability	0		0		0
Interest income	(5,032)		(2,259)
Interest expense, net of capitalized interest	5,032		2,259		975
Loss on early extinguishment of debt	0		0		0
Loss on interests in subsidiaries	57,297		21,223		32,442
Other income (expense), net	0		0
Other income, net					(975)
Total other expense	57,297		21,223
Net income (loss)	57,297		21,223		32,232
Loss attributable to non-controlling interests	380		2,784		2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$ 57,677		$ 24,007		$ 34,251

[1] Includes the Pocono Downs Subsidiaries, MBC, Mohegan Golf, Mohegan Ventures-NW, MVW, WTG and MTGA Gaming.

[2] Includes MGA and subsidiaries, Downs Lodging, Salishan-Mohegan, MG&H and Mohegan Resorts and subsidiaries.

XML

ORGANIZATION (Details)	12 Months Ended		1 Months Ended
	Sep. 30, 2014 acre	Sep. 30, 2012	Oct. 31, 2012
Mohegan Tribe
Entity Information [Line Items]
Size of tribe reservation	544
Mohegan Tribe | Salishan-Mohegan
Entity Information [Line Items]
Membership or limited partnership interest percentage	10.85%
Mohegan Tribal Gaming Authority
Entity Information [Line Items]
Size of gaming and entertainment complex	185
Number of members on management board	9
Mohegan Tribal Gaming Authority | Downs Racing, Backside, Mill Creek Land, and Northeast Concessions
Entity Information [Line Items]
Membership or limited partnership interest percentage	99.99%
Mohegan Basketball Club | WNBA
Entity Information [Line Items]
Membership or limited partnership interest percentage	4.20%
Mohegan Commercial Ventures-PA | Downs Racing, Backside, Mill Creek Land, and Northeast Concessions
Entity Information [Line Items]
General partnership interest percentage	0.01%
Downs Racing
Entity Information [Line Items]
Size of site on which gaming and entertainment complex is located	400
Mohegan Ventures-Northwest | Salishan-Mohegan
Entity Information [Line Items]
Membership or limited partnership interest percentage	49.15%
Salishan-Mohegan | Salishan-Mohegan Two
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Salishan-Mohegan | Interchange Development Group
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Ventures Wisconsin | Wisconsin Tribal Gaming
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
MTGA Gaming | Mohegan Gaming & Hospitality
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Gaming & Hospitality | Mohegan Resorts
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Resorts | Mohegan Resorts Mass
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Resorts | Mohegan New York Entities
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Gaming Advisors | Mohegan New Jersey Entities
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Gaming Advisors | Resorts Atlantic City
Entity Information [Line Items]
Membership or limited partnership interest percentage		10.00%
Mohegan Gaming Advisors | MGA Holding MA
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Gaming Advisors | Mohegan PA Entities
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Gaming Advisors | MGA Holdings FL
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
Mohegan Holding NJ | Resorts Atlantic City
Entity Information [Line Items]
Membership or limited partnership interest percentage			10.00%
MGA Holding MA | MGA Palmer Partners
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
MGA Palmer Partners | Mohegan Sun Massachusetts
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%
MGA Holdings FL | MGA Miami
Entity Information [Line Items]
Membership or limited partnership interest percentage	100.00%

XML

LONG-TERM DEBT - Promissory Notes (Details) (USD $)	1 Months Ended
	Sep. 30, 2009	Mar. 31, 2012	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2013
Debt Instrument [Line Items]
Accrued interest			$ 8,659,000	$ 23,296,000
Promissory Notes | 2009 Mohegan Tribe Promissory Note
Debt Instrument [Line Items]
Loan face amount	10,000,000.0
Note stated interest rate	10.00%
Accrued interest			2,500,000	4,700,000
Promissory Notes | 2009 Mohegan Tribe Promissory Note | Commencing December 31, 2013 through March 31, 2014
Debt Instrument [Line Items]
Quarterly interest payment	1,200,000.0
Promissory Notes | 2009 Mohegan Tribe Promissory Note | Commencing June 30, 2015
Debt Instrument [Line Items]
Quarterly interest payment	1,300,000.0
Quarterly amortization of principal	875,000
Promissory Notes | 2009 Mohegan Tribe Promissory Note | Commencing December 31, 2012 through September 30, 2013
Debt Instrument [Line Items]
Quarterly amortization of principal	1,625,000.000
Promissory Notes | 2009 Mohegan Tribe Promissory Note | Commencing December 31, 2013
Debt Instrument [Line Items]
Quarterly amortization of principal	875,000
Promissory Notes | 2009 Mohegan Tribe Promissory Note | Commencing September 30, 2015
Debt Instrument [Line Items]
Quarterly amortization of principal	875,000
Promissory Notes | 2012 Mohegan Tribe Minor's Trust Promissory Note
Debt Instrument [Line Items]
Loan face amount		20,000,000.0
Note stated interest rate		10.00%
Accrued interest			416,000	5,000
Promissory Notes | 2012 Mohegan Tribe Minor's Trust Promissory Note | Commencing September 30, 2015 through March 31, 2016
Debt Instrument [Line Items]
Periodic interest payment		800,000
Promissory Notes | 2012 Mohegan Tribe Minor's Trust Promissory Note | Commencing December 31, 2012 through March 31, 2014
Debt Instrument [Line Items]
Quarterly amortization of principal		500,000
Promissory Notes | 2012 Mohegan Tribe Minor's Trust Promissory Note | Commencing July 1, 2014 and September 30, 2015
Debt Instrument [Line Items]
Quarterly amortization of principal		500,000
Promissory Notes | 2012 Mohegan Tribe Minor's Trust Promissory Note | Commencing December 31, 2015 through September 30, 2016
Debt Instrument [Line Items]
Quarterly amortization of principal		1,500,000.0
Promissory Notes | 2012 Mohegan Tribe Minor's Trust Promissory Note | Commencing at Maturity
Debt Instrument [Line Items]
Quarterly amortization of principal		10,000,000.0
Promissory Notes | 2013 Mohegan Tribe Promissory Note
Debt Instrument [Line Items]
Loan face amount					7,400,000
Note stated interest rate					4.00%
Accrued interest			$ 1,000	$ 1,000

XML

SEGMENT REPORTING

12 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING:

As of September 30, 2014, the Authority owns and operates, either directly or through wholly-owned subsidiaries, Mohegan Sun, the Connecticut Sun franchise, and the Mohegan Sun Golf Club (collectively, the “Connecticut Facilities”), and the Pennsylvania Facilities. Substantially all of the Authority's revenues are derived from these operations. The Connecticut Sun franchise and the Mohegan Sun Golf Club are aggregated with the Mohegan Sun operating segment because these operations all share similar economic characteristics, which is to generate gaming and entertainment revenues by attracting patrons to Mohegan Sun. The Authority's executive officers review and assess the performance and operating results and determine the proper allocation of resources to the Connecticut Facilities and the Pennsylvania Facilities on a separate basis. Accordingly, the Authority has two separate reportable segments: (1) Mohegan Sun, which includes the operations of the Connecticut Facilities and (2) Mohegan Sun at Pocono Downs, which includes the operations of the Pennsylvania Facilities. The Authority's operations related to investments in unconsolidated affiliates and certain other Corporate and management operations have not been identified as separate reportable segments, therefore, these operations are included in Corporate and other in the following segment disclosures to reconcile to consolidated results.

	For the Fiscal Years Ended
(in thousands)	September 30, 2014			September 30, 2013			September 30, 2012
Net revenues:
Mohegan Sun	$	995,100		$	1,042,078		$	1,084,017
Mohegan Sun at Pocono Downs	296,578			296,648			314,999
Corporate and other	5,391			1,302			297
Inter-segment revenues	(4,351		)	—			—
Total	$	1,292,718		$	1,340,028		$	1,399,313
Income (loss) from operations:
Mohegan Sun	$	181,325		$	212,680		$	199,358
Mohegan Sun at Pocono Downs	36,956			43,763			43,296
Corporate and other	(36,873		)	(26,937		)	(17,230		)
Total	181,408			229,506			225,424
Accretion of discount to the relinquishment liability	(2,205		)	(4,974		)	(8,248		)
Interest income	7,066			6,271			4,492
Interest expense, net of capitalized interest	(147,933		)	(170,150		)	(146,057		)
Loss on early extinguishment of debt	(62,041		)	(11,516		)	(14,326		)
Other expense, net	(853		)	(1,595		)	(44		)
Net income (loss)	(24,558		)	47,542			61,241
Loss attributable to non-controlling interests	380			2,784			2,019
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	(24,178	)	$	50,326		$	63,260

	For the Fiscal Years Ended
	September 30, 2014		September 30, 2013		September 30, 2012
Capital expenditures incurred:
Mohegan Sun	$	19,518	$	27,652	$	36,542
Mohegan Sun at Pocono Downs	3,946		4,673		3,543
Corporate and other	9,164		33,728		3,557
Total	$	32,628	$	66,053	$	43,642
	September 30, 2014		September 30, 2013
Total assets:
Mohegan Sun	$	1,368,352	$	1,425,152
Mohegan Sun at Pocono Downs	551,655		558,700
Corporate	135,953		152,298
Total	$	2,055,960	$	2,136,150

XML

RECEIVABLES, NET (Tables)

12 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Schedule of receivables, net

The following table presents a reconciliation of long-term receivables, including current portions, and the related reserves for doubtful collection of these long-term receivables (in thousands):

	Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013 (1)	$	57,782	$	3,530		$	61,312
Additions:
Issuance of affiliate advances and other loans, including interest receivable	8,814		123			8,937
Deductions:
Payments received	—		(1,041		)	(1,041		)
Balance, September 30, 2014 (1)	$	66,596	$	2,612		$	69,208

__________

(1) Includes interest receivable of $35.7 million and $29.1 million as of September 30, 2014 and 2013, respectively. The WTG receivables no longer accrue interest pursuant to a release and reimbursement agreement entered into in September 2010.

	Reserves for Doubtful Collection of Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2013	$	24,189	$	61		$	24,250
Additions:
Charges to bad debt expense	2,644		744			3,388
Deductions:
Adjustments	—		(9		)	(9		)
Balance, September 30, 2014	$	26,833	$	796		$	27,629

Receivables, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Gaming	$	32,789		$	27,369
Hotel	922			1,731
Other	8,574			7,211
Subtotal	42,285			36,311
Less: reserve for doubtful collection	(11,645		)	(10,169		)
Total receivables, net	$	30,640		$	26,142

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LONG-TERM DEBT - Senior Unsecured Notes (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Aug. 31, 2013	Mar. 31, 2012
Debt Instrument [Line Items]
Accrued interest	$ 8,659,000	$ 23,296,000
Senior Unsecured Notes | 2013 9 3/4% Senior Unsecured Notes
Debt Instrument [Line Items]
Loan face amount			500,000,000
Note stated interest rate	9.75%	9.75%	9.75%
Redeemable rate			100.00%
Redeemable rate after cutoff upon change of control			101.00%
Redeemable rate upon certain conditions			100.00%
Accrued interest	4,100,000	6,200,000
Senior Unsecured Notes | 2012 11 % Senior Subordinated Notes
Debt Instrument [Line Items]
Amount of debt repurchased			69,000,000
Senior Secured Notes | 2012 10 1/2% Third Lien Senior Secured Notes
Debt Instrument [Line Items]
Note stated interest rate			10.50%
Senior Subordinated Notes | 2012 11 % Senior Subordinated Notes
Debt Instrument [Line Items]
Loan face amount				344,200,000.0
Note stated interest rate	11.00%	11.00%	11.00%	11.00%
Amount of debt repurchased			69,000,000
Redeemable rate				100.00%
Redeemable rate after cutoff upon change of control				101.00%
Redeemable rate upon certain conditions				100.00%
Accrued interest	$ 1,300,000	$ 1,300,000

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Costs and Expenses & Severance Costs and Expenses (Details) (USD $)	12 Months Ended			1 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012 employee
Schedule of Accrued Severance Liability By Segment [Line Items]
Advertising costs and expenses	$ 26,700,000	$ 28,200,000	$ 28,200,000
Prepaid advertising	142,000	19,000
2012 Restructuring Plan
Schedule of Accrued Severance Liability By Segment [Line Items]
Approximate workforce reductions (in positions)				330
Mohegan Sun
Restructuring Reserve [Roll Forward]
Balance, September 30, 2013	1,417,000
Cash payments	(1,401,000)
Balance, September 30, 2014	$ 16,000

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Cash flows provided by (used in) operating activities:
Net income (loss)	$ (24,558)	$ 47,542	$ 61,241
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization	80,126	80,317	85,030
Relinquishment liability reassessment	(1,905)	(249)	(11,439)
Accretion of discount to the relinquishment liability	2,205	4,974	8,248
Cash paid for accretion of discount to the relinquishment liability	(2,897)	(5,792)	(9,028)
Loss on early extinguishment of debt	58,245	4,531	14,326
Payments of tender offer costs and discounts	(48,155)	(3,104)	0
Amortization of debt issuance costs and accretion of bond discounts	8,037	12,285	9,987
Amortization of net deferred gain on settlement of derivative instruments	0	(76)	(255)
Provision for losses on receivables	6,146	3,436	3,189
Impairment of Project Horizon	4,981	0	0
(Gain) loss on disposition of assets	(9)	241	353
(Gain) loss from unconsolidated affiliates	826	1,553	0
Changes in operating assets and liabilities:
Increase in receivables	(7,159)	(648)	(7,676)
(Increase) decrease in inventories	(554)	448	(410)
(Increase) decrease in other assets	(3,531)	2,759	(4,859)
Increase (decrease) in trade payables	13,419	(2,143)	(4,778)
Increase (decrease) in accrued interest	(14,637)	(23,066)	17,782
Increase (decrease) in other liabilities	2,436	(20,057)	15,286
Net cash flows provided by (used in) operating activities	73,016	102,951	176,997
Cash flows provided by (used in) investing activities:
Purchases of property and equipment, net of increase (decrease) in construction payables of $(5,179), $5,948 and $(3,829), respectively	(35,079)	(59,597)	(47,471)
Issuance of third-party loans and advances	(1,804)	(2,033)	(923)
Payments received on third-party loans	644	139	146
(Increase) decrease in restricted cash, net	13,679	33,078	(45,231)
Proceeds from asset sales	134	216	143
Investments in unconsolidated affiliates	(29)	(4,971)	0
Proceeds from Commonwealth of Pennsylvania’s facility improvement grant	0	0	2,000
Net cash flows provided by (used in) investing activities	(22,455)	(33,168)	(91,336)
Cash flows provided by (used in) financing activities:
Line of Credit borrowings			225,215
Line of Credit repayments			(225,215)
Borrowings from Mohegan Tribe	0	0	20,600
Repayments to Mohegan Tribe	(3,250)	(9,950)	0
Proceeds from issuance of Senior Unsecured Notes		500,000
Repayments of other long-term debt	(212,323)	(495,601)	(66,454)
Salishan-Mohegan Bank Credit Facility repayments -Revolving	0	0	(15,250)
Downs Lodging Credit Facility borrowings - Term			45,000
Principal portion of relinquishment liability payments	(46,574)	(45,350)	(45,258)
Distributions to Mohegan Tribe	(50,000)	(50,000)	(52,950)
Payments of financing fees	(12,395)	(11,957)	(51,513)
Payments on capital lease obligations	(2,168)	(3,385)	(706)
Non-controlling interest contributions	0	0	280
Net cash flows provided by (used in) financing activities	(65,077)	(120,243)	(83,751)
Net decrease in cash and cash equivalents	(14,516)	(50,460)	1,910
Cash and cash equivalents at beginning of year	63,624	114,084	112,174
Cash and cash equivalents at end of year	49,108	63,624	114,084
Supplemental disclosures:
Cash paid during the year for interest	153,481	180,657	118,225
Repurchase of membership interest	0	7,420	0
Capital lease	0	0	4,189
Credit Facility | Prior Bank Credit Facility - Revolving
Cash flows provided by (used in) financing activities:
Line of Credit borrowings	0	3,000	154,000
Line of Credit repayments	0	(3,000)	(289,000)
Credit Facility | Prior Bank Credit Facility - Term Loan
Cash flows provided by (used in) financing activities:
Line of Credit repayments	(393,000)	(4,000)	(3,000)
Credit Facility | Prior Term Loan Facility
Cash flows provided by (used in) financing activities:
Line of Credit borrowings	0	0	220,500
Line of Credit repayments	(222,103)	0	0
Credit Facility | Senior Secured Credit Facility - Revolving
Cash flows provided by (used in) financing activities:
Line of Credit borrowings	310,000	0	0
Line of Credit repayments	(273,000)	0	0
Credit Facility | Senior Secured Credit Facility - Term Loan A
Cash flows provided by (used in) financing activities:
Line of Credit borrowings	124,343	0	0
Line of Credit repayments	(3,125)	0	0
Credit Facility | Senior Secured Credit Facility - Term Loan B
Cash flows provided by (used in) financing activities:
Line of Credit borrowings	720,952	0	0
Line of Credit repayments	(5,475)	0	0
Credit Facility | Bank of America, N.A. Line of Credit
Cash flows provided by (used in) financing activities:
Line of Credit borrowings	356,796	24,897	225,215
Line of Credit repayments	(353,755)	(24,897)	(225,215)
Credit Facility | Downs Lodging Credit Facility
Cash flows provided by (used in) financing activities:
Downs Lodging Credit Facility borrowings - Term	0	0	45,000
Senior Unsecured Notes
Cash flows provided by (used in) financing activities:
Proceeds from issuance of Senior Unsecured Notes	$ 0	$ 500,000	$ 0

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PROPERTY AND EQUIPMENT, NET

12 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET:

Property and equipment, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Land	$	65,485		$	65,485
Land improvements	97,146			96,735
Buildings and improvements	1,734,673			1,691,924
Furniture and equipment	547,719			541,832
Construction in process	8,011			55,569
Subtotal	2,453,034			2,451,545
Less: accumulated depreciation	(1,028,966		)	(975,370		)
Total property and equipment, net	$	1,424,068		$	1,476,175

Depreciation expense totaled $79.6 million, $79.8 million and $84.5 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Capitalized interest totaled $735,000, $2.0 million and $34,000 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

In September 2008, the Authority suspended certain elements of its Project Horizon expansion due to a slowdown in business volumes and uncertainties in the financial markets. Costs incurred on the suspended elements related to excavation and foundation work for a planned podium and new hotel tower, as well as professional fees for design and architectural work. During its fourth quarter ended September 30, 2010, the Authority re-evaluated its plans with respect to the development of the new hotel element of the project, and based on a modified plan, which encompassed a smaller hotel to be located closer to the existing hotel, determined that certain assets related to the suspended elements did not have any future benefit to the Authority. Accordingly, in fiscal 2010, the Authority recorded a related $58.1 million impairment charge. During its fourth quarter ended September 30, 2014, the Authority further re-evaluated its modified plan, which now includes a hotel to be developed and owned by an instrumentality of the Tribe, as well as a third-party developed and owned retail center, and, based on new design plans, including the final location of the planned hotel, determined that certain design and earthwork related assets did not have any future benefit to the Authority. Accordingly, the Authority recognized a related $5.0 million impairment charge, which is recorded in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014. Of the $5.0 million impairment charge recognized in the fiscal year ended September 30, 2014, approximately $2.0 million relates to conceptual design work associated with the original hotel and should have been written-off in conjunction with the impairment charge recognized in fiscal 2010. The Authority concluded that this error was not material to its previously issued consolidated financial statements and the resulting correction is not material to the accompanying consolidated financial statements. As of September 30, 2014 and 2013, Project Horizon related assets, including related capitalized interest, anticipated to be utilized totaled $4.4 million and $9.4 million, respectively, and were included in construction in process. The Authority continues to evaluate its options with respect to the development of a new hotel and retail center; however, it can provide no assurance regarding if or when this modified plan will commence. If this modified plan does not commence, factors that the Authority will consider in determining the feasibility of a future hotel and retail center include the Authority’s financial performance, project cash flow projections, project costs, financing options, economic conditions, industry trends, demand and competition.

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MOHEGAN VENTURES WISCONSIN, LLC (MENOMINEE PROJECT) (Details) (Menominee Project, Mohegan Ventures Wisconsin, Wisconsin Tribal Gaming)	12 Months Ended
	Sep. 30, 2014
Menominee Project | Mohegan Ventures Wisconsin | Wisconsin Tribal Gaming
Schedule of Long-term Development Projects [Line Items]
Membership or limited partnership interest percentage	100.00%

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PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

Property and equipment, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Land	$	65,485		$	65,485
Land improvements	97,146			96,735
Buildings and improvements	1,734,673			1,691,924
Furniture and equipment	547,719			541,832
Construction in process	8,011			55,569
Subtotal	2,453,034			2,451,545
Less: accumulated depreciation	(1,028,966		)	(975,370		)
Total property and equipment, net	$	1,424,068		$	1,476,175

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Intangible Assets and Relinquishment Liability (Details) (USD $)	12 Months Ended	1 Months Ended		12 Months Ended
	Sep. 30, 2014	Oct. 31, 2006	Jun. 30, 2010	Sep. 30, 2013
Acquired Indefinite-lived Intangible Assets [Line Items]
Relinquishment fee percentage	5.00%
Pennsylvania Facilities | Slot Machine License
Acquired Indefinite-lived Intangible Assets [Line Items]
Intangible asset recorded	214,000,000	$ 50,000,000.0
Pennsylvania Facilities | Table Game Certificate
Acquired Indefinite-lived Intangible Assets [Line Items]
Intangible asset recorded			16,500,000.0
Mohegan Sun | Mohegan Sun trademark
Acquired Indefinite-lived Intangible Assets [Line Items]
Intangible asset recorded	119,700,000
Impairment of Mohegan Sun trademark	0			0
Franchise | WNBA
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Finite-lived	0			0
Franchise | Pautipaug Country Club
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Finite-lived	0			$ 0

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INVESTMENT IN WNBA FRANCHISE

12 Months Ended

Sep. 30, 2014

INVESTMENT IN WNBA FRANCHISE [Abstract]

INVESTMENT IN WNBA FRANCHISE

INVESTMENT IN WNBA FRANCHISE:

In January 2003, the Authority formed MBC as its wholly-owned subsidiary to own and operate a professional basketball team in the WNBA. In January 2003, the Authority and MBC entered into a Membership Agreement with WNBA, LLC which sets forth the terms and conditions under which MBC acquired its membership in the WNBA and the right to own and operate a team. The Authority guaranteed the obligations of MBC under the Membership Agreement. MBC is a full and unconditional guarantor of the Authority’s outstanding indebtedness.

In connection with MBC’s acquisition of its membership in the WNBA and the right to own and operate a team, the Authority estimated the fair value of the initial player roster to be $4.8 million and the remaining $5.5 million of MBC’s aggregate investment was recognized as a franchise value.

The player roster value was amortized over seven years and became fully amortized in fiscal 2010. The franchise value is being amortized over thirty years and is assessed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. As of September 30, 2014 and 2013, accumulated amortization on the franchise value was $2.1 million and $2.0 million, respectively. Amortization expense associated with the franchise value totaled $183,000 for each of the fiscal years ended September 30, 2014, 2013 and 2012. The Authority expects to incur amortization expenses related to the franchise value of $183,000 for each of the next five fiscal years. The franchise value was included in intangible assets, net, in the accompanying consolidated balance sheets.

MBC currently owns approximately 4.2% of the membership interest in WNBA, LLC which is accounted for under the Cost Method. Under the terms of the Limited Liability Company Agreement of WNBA, LLC, if at any time, WNBA, LLC’s Board of Governors determines that additional funds are needed for WNBA, LLC’s or any league entity’s general business, the Board of Governors may require additional cash capital contributions. In such event, each member shall be obligated to contribute to WNBA, LLC an amount of cash equal to that member’s proportionate share of ownership. No such cash capital contribution has been required by WNBA, LLC through September 30, 2014.