10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549 

_________________________________

FORM 10-Q

 _____________________________________

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

For the quarterly period ended June 30, 2022

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)			(IRS 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:

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

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  ☐    No  ☒*

* The registrant is a voluntary filer of reports required to be filed by certain companies under Sections 13 or 15(d) of the Securities Exchange Act of 1934 and has filed all reports that would have been required during the preceding 12 months had it been subject to such filing requirements.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  ☒

MOHEGAN TRIBAL GAMING AUTHORITY

INDEX TO FORM 10-Q

		Page Number
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of June 30, 2022 and September 30, 2021 (unaudited)	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended June 30, 2022 and 2021 (unaudited)	4
	Condensed Consolidated Statements of Changes in Capital for the Three and Nine Months Ended June 30, 2022 and 2021 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2022 and 2021 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	24
Item 4.	Controls and Procedures	24
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 6.	Exhibits	26
Signatures.	Mohegan Tribal Gaming Authority	27

PART I. FINANCIAL INFORMATION

Item 1.     Financial Statements

MOHEGAN TRIBAL GAMING AUTHORITY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

	June 30, 2022		September 30, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	156,907	$	149,822
Restricted cash and cash equivalents	4,666		5,259
Accounts receivable, net	49,871		40,772
Inventories	20,272		18,455
Due from Ontario Lottery and Gaming Corporation	13,642		16,711
Contract asset	37,196		32,665
Other current assets	33,562		56,466
Total current assets	316,116		320,150
Restricted cash and cash equivalents	375,987		9,616
Property and equipment, net	1,598,135		1,531,619
Right-of-use assets	323,067		362,008
Intangible assets, net	313,034		327,255
Contract asset, net of current portion	64,442		87,262
Notes receivable	2,514		2,514
Other assets, net	75,390		89,453
Total assets	$	3,068,685	$	2,729,877
LIABILITIES AND CAPITAL
Current liabilities:
Current portion of long-term debt	$	44,012	$	80,276
Current portion of finance lease obligations	4,039		5,836
Current portion of operating lease obligations	5,510		9,616
Trade payables	11,551		23,675
Accrued payroll	62,249		53,352
Construction payables	31,849		53,120
Accrued interest payable	53,661		37,546
Due to Ontario Lottery and Gaming Corporation	2,502		22,253
Other current liabilities	178,720		159,802
Total current liabilities	394,093		445,476
Long-term debt, net of current portion	2,260,208		1,858,478
Finance lease obligations, net of current portion	109,882		109,189
Operating lease obligations, net of current portion	377,177		410,090
Warrants and put option liabilities	64,136		—
Accrued payroll	—		3,529
Other long-term liabilities	39,872		36,357
Total liabilities	3,245,368		2,863,119
Commitments and Contingencies
Capital:
Retained deficit	(134,001)		(133,087)
Accumulated other comprehensive loss	(45,204)		(2,065)
Total capital attributable to Mohegan Tribal Gaming Authority	(179,205)		(135,152)
Non-controlling interests	2,522		1,910
Total capital	(176,683)		(133,242)
Total liabilities and capital	$	3,068,685	$	2,729,877

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

3

MOHEGAN TRIBAL GAMING AUTHORITY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

	Three Months Ended				Nine Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Revenues:
Gaming	$	293,973	$	241,289	$	841,196	$	623,674
Food and beverage	35,622		20,826		96,157		45,209
Hotel	30,256		22,188		84,989		55,882
Retail, entertainment and other	57,227		43,886		155,175		112,833
Net revenues	417,078		328,189		1,177,517		837,598
Operating costs and expenses:
Gaming, including related party transactions of $808, $(345), $2,426 and $1,262, respectively	139,760		122,326		424,787		329,392
Food and beverage	29,521		17,544		79,724		40,640
Hotel, including related party transactions of $2,161, $2,161, $6,483 and $6,483, respectively	12,354		8,926		34,792		25,907
Retail, entertainment and other	20,571		10,276		56,357		24,412
Advertising, general and administrative, including related party transactions of $11,600, $6,327, $36,162 and $22,604, respectively	79,377		55,661		226,770		154,165
Corporate, including related party transactions of $1,726, $1,702, $5,746 and $4,966, respectively	15,278		11,238		50,380		35,230
Depreciation and amortization	26,085		27,140		77,653		79,502
Impairment of tangible assets	—		—		17,679		—
Impairment of intangible assets	—		—		12,869		—
Other, net	4,006		11,037		13,735		28,843
Total operating costs and expenses	326,952		264,148		994,746		718,091
Income from operations	90,126		64,041		182,771		119,507
Other income (expense):
Interest income	64		125		313		129
Interest expense, net	(53,969)		(43,929)		(151,055)		(128,256)
Loss on modification and early extinguishment of debt	(3)		(20)		(3)		(23,978)
Gain on fair value adjustment	26,796		—		20,635		—
Other, net	83		2,373		(2,595)		5,665
Total other expense	(27,029)		(41,451)		(132,705)		(146,440)
Income (loss) before income tax	63,097		22,590		50,066		(26,933)
Income tax benefit (provision)	(3,534)		3,312		(4,553)		10,101
Net income (loss)	59,563		25,902		45,513		(16,832)
Income attributable to non-controlling interests	(199)		(535)		(612)		(411)
Net income (loss) attributable to Mohegan Tribal Gaming Authority	59,364		25,367		44,901		(17,243)
Comprehensive income (loss):
Foreign currency translation adjustment	(29,723)		216		(43,139)		10,660
Other comprehensive income (loss)	(29,723)		216		(43,139)		10,660
Other comprehensive income attributable to non-controlling interests	—		—		—		(1,376)
Other comprehensive income (loss) attributable to Mohegan Tribal Gaming Authority	(29,723)		216		(43,139)		9,284
Comprehensive income (loss) attributable to Mohegan Tribal Gaming Authority	$	29,641	$	25,583	$	1,762	$	(7,959)

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

4

MOHEGAN TRIBAL GAMING AUTHORITY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL

(in thousands)

(unaudited)

	Retained Deficit		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Total Capital Attributable to Mohegan Tribal Gaming Authority		Non-controlling Interests		Total Capital
Balance, March 31, 2022	$	(175,787)	$	—	$	(15,481)	$	(191,268)	$	2,323	$	(188,945)
Net income	59,364		—		—		59,364		199		59,563
Foreign currency translation adjustment	—		—		(29,723)		(29,723)		—		(29,723)
Distributions to Mohegan Tribe	(17,500)		—		—		(17,500)		—		(17,500)
Distributions to Salishan Company, LLC related to the Cowlitz Project	(78)		—		—		(78)		—		(78)
Balance, June 30, 2022	$	(134,001)	$	—	$	(45,204)	$	(179,205)	$	2,522	$	(176,683)
Balance, September 30, 2021	$	(133,087)	$	—	$	(2,065)	$	(135,152)	$	1,910	$	(133,242)
Net income	44,901		—		—		44,901		612		45,513
Foreign currency translation adjustment	—		—		(43,139)		(43,139)		—		(43,139)
Contribution from Mohegan Tribe	—		325		—		325		—		325
Distributions to Mohegan Tribe	(45,175)		(325)		—		(45,500)		—		(45,500)
Distributions to Salishan Company, LLC related to the Cowlitz Project	(640)		—		—		(640)		—		(640)
Balance, June 30, 2022	$	(134,001)	$	—	$	(45,204)	$	(179,205)	$	2,522	$	(176,683)
Balance, March 31, 2021	$	(142,563)	$	—	$	9,291	$	(133,272)	$	1,164	$	(132,108)
Net income	25,367		—		—		25,367		535		25,902
Foreign currency translation adjustment	—		—		216		216		—		216
Contribution from Mohegan Tribe	—		2,814		—		2,814		—		2,814
Distributions to Mohegan Tribe	(12,186)		(2,814)		—		(15,000)		—		(15,000)
Distributions to Salishan Company, LLC related to the Cowlitz Project	(159)		—		—		(159)		—		(159)
Balance, June 30, 2021	$	(129,541)	$	—	$	9,507	$	(120,034)	$	1,699	$	(118,335)
Balance, September 30, 2020	$	(75,692)	$	—	$	223	$	(75,469)	$	7,480	$	(67,989)
Net income (loss)	(17,243)		—		—		(17,243)		411		(16,832)
Foreign currency translation adjustment	—		—		9,284		9,284		1,376		10,660
Contribution from Mohegan Tribe	—		2,814		—		2,814		—		2,814
Distributions to Mohegan Tribe	(36,186)		(2,814)		—		(39,000)		—		(39,000)
Distributions to Salishan Company, LLC related to the Cowlitz Project	(420)		—		—		(420)		—		(420)
Other	—		—		—		—		(7,568)		(7,568)
Balance, June 30, 2021	$	(129,541)	$	—	$	9,507	$	(120,034)	$	1,699	$	(118,335)

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

5

MOHEGAN TRIBAL GAMING AUTHORITY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months Ended
	June 30, 2022		June 30, 2021
Cash flows provided by operating activities:
Net income (loss)	$	45,513	$	(16,832)
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:
Depreciation and amortization	77,653		79,502
Non-cash operating lease expense	6,371		9,072
Accretion of discounts	1,582		974
Amortization of discounts and debt issuance costs	11,548		15,309
Paid-in-kind interest	22,065		—
Gain on fair value adjustment	(20,635)		—
Loss on modification and early extinguishment of debt	—		23,725
Provision for losses on receivables	3,902		3,493
Deferred income taxes	4,634		(10,382)
Impairment charges	30,548		—
Other, net	2,839		(6,612)
Changes in operating assets and liabilities:
Accounts receivable, net	(13,392)		(7,823)
Inventories	(1,858)		(689)
Due from Ontario Lottery and Gaming Corporation	3,205		(194)
Contract asset	16,495		6,185
Other assets	25,490		(328)
Trade payables	(12,178)		2,565
Accrued interest payable	14,607		23,421
Due to Ontario Lottery and Gaming Corporation	(19,667)		6,101
Operating lease obligations	(3,600)		13,016
Other liabilities	33,375		4,617
Net cash flows provided by operating activities	228,497		145,120
Cash flows used in investing activities:
Purchases of property and equipment	(201,549)		(33,358)
Investments related to the Inspire Korea project	(5,611)		—
Other, net	(2,029)		1,206
Net cash flows used in investing activities	(209,189)		(32,152)
Cash flows provided by (used in) financing activities:
Proceeds from revolving credit facilities	797,091		697,153
Repayments on revolving credit facilities	(861,836)		(804,153)
Proceeds from issuance of long-term debt	619,570		1,223,802
Repayments of long-term debt	(48,502)		(1,135,356)
Payments on finance lease obligations	(4,614)		(808)
Contributions from affiliates	325		2,814
Distributions to affiliates	(46,140)		(39,420)
Payments of financing fees	(66,911)		(24,082)
Other, net	(1,607)		(1,000)
Net cash flows provided by (used in) financing activities	387,376		(81,050)
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents	406,684		31,918
Effect of exchange rate on cash, cash equivalents, restricted cash and restricted cash equivalents	(33,821)		1,625
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	164,697		142,069
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	537,560	$	175,612

6

	Nine Months Ended
	June 30, 2022		June 30, 2021
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the condensed consolidated balance sheets:
Cash and cash equivalents	$	156,907	$	158,406
Restricted cash and cash equivalents, current	4,666		2,002
Restricted cash and cash equivalents, non-current	375,987		15,204
Cash, cash equivalents, restricted cash and restricted cash equivalents	$	537,560	$	175,612
Supplemental disclosures:
Cash paid for interest	$	107,801	$	86,810
Non-cash transactions:
Right-of-use assets additions (reductions)	$	(27,363)	$	24,787
Right-of-use obligations additions (reductions)	$	(27,363)	$	24,154
Paid-in-kind interest capitalized	$	7,029	$	—
Paid-in-kind interest converted to debt	$	23,872	$	—
Increase in construction payables	$	—	$	44,735
Finance lease assets and obligations	$	—	$	79,102
Senior secured credit facility reduction	$	—	$	45,000

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

7

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 — Organization and Basis of Presentation

Organization

The Mohegan Tribal Gaming Authority (the “Company,” “we,” “us,” or “our”) was established by the Mohegan Tribe of Indians of Connecticut (the “Mohegan Tribe”) in July 1995. We have the exclusive authority to conduct and regulate gaming activities for the Mohegan Tribe on tribal lands and the non-exclusive authority to conduct such activities elsewhere. The Mohegan Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land.

We are primarily engaged in the ownership, operation and development of integrated entertainment facilities. We currently own two facilities in the United States and operate five facilities in the United States and Canada. We are also currently developing a facility in South Korea, the Inspire Entertainment Resort located adjacent to the Incheon International Airport (“Inspire Korea”).

Impact of the COVID-19 Pandemic

In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic and the United States federal government declared it a national emergency. The spread of COVID-19 has affected most segments of the global economy, including our operations. In March 2020, we temporarily suspended operations at our properties in the United States and Canada to ensure the health and safety of our employees, guests and the surrounding communities in which we operate, consistent with directives from various governmental bodies. All of our properties in the United States were reopened by July 2020. Our properties in Canada reopened in July 2021, but were temporarily closed again from January 5, 2022 through January 30, 2022, due to a resurgence of COVID-19 at that time.

COVID-19 has had a significant impact on our operations, the full extent of which depends on future developments which are highly uncertain and cannot be predicted with confidence. Such developments include the following:

•the duration of COVID-19 or the extent of any resurgence or variants of COVID-19;

•the manner in which our guests, suppliers and other third parties respond to COVID-19, including the perception of safety and health measures we implemented;

•new information that may emerge concerning the severity of COVID-19 and the actions to contain or treat it;

•general economic conditions; and

•consumer confidence.

Accordingly, we cannot reasonably estimate the extent to which COVID-19 will further impact our future financial condition, results of operations and cash flows.

We could experience other potential adverse impacts as a result of COVID-19, including, but not limited to, charges from further adjustments to the carrying value of our intangible assets, as well as other long-lived asset impairment charges. Actual results may differ materially from our current estimates as the scope of COVID-19 evolves, depending largely, but not exclusively, on the duration and extent of our business disruptions.

Basis of Presentation 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In accordance with Rule 10-01, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by US GAAP. All adjustments, including normal recurring accruals and adjustments, necessary for a fair statement of our operating results for the interim period, have been included.

Our results of operations for these interim periods are not necessarily indicative of operating results for other interim periods, full fiscal years or any other periods, particularly given the impact of COVID-19 as discussed above.

8

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. The preparation of financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures of contingent assets and liabilities.

Similar to other sovereign governments, the Mohegan Tribe and its entities, including the Company, are not subject to United States federal income taxes. However, certain of our non-tribal entities are subject to income taxes in various state and local jurisdictions within the United States and in Canada.

Inspire Korea

The initial phase of Inspire Korea primarily consists of an integrated entertainment resort. Design and construction work was temporarily paused in September 2020 while we were in the process of securing the necessary financing for the project, which was completed in November 2021 (see Note 2). During this temporary pause in construction, Inspire Korea obtained approval to modify its development plan and adjust the timing of a future sub-phase of the initial phase of the project.

On December 27, 2021, Inspire Korea elected to terminate a licensing arrangement for a previously-planned sub-phase and discontinue related design work. As a result, we recognized an intangible asset impairment of $12.9 million related to the licensing arrangement and a tangible asset impairment of $17.7 million on the related construction in progress.

Recently Issued Accounting Pronouncements

ASU 2019-12

In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which simplifies various aspects related to the accounting for income taxes. This new standard removes certain exceptions to the general principles in ASU 2019-12 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 was effective for annual reporting periods beginning after December 15, 2020. There was no effect on the Company’s financial statements from adopting this new standard.

ASU 2021-10

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”), which requires business entities to provide certain disclosures about government transactions that are accounted for by applying a grant or contribution accounting model by analogy to other accounting guidance. ASU 2021-10 is effective for annual reporting periods beginning after December 15, 2021. The Company is currently evaluating the effect ASU 2021-10 will have on its disclosures.

9

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Note 2 — Long-Term Debt

	June 30, 2022					September 30, 2021
(in thousands)	Final Maturity	Face Value		Book Value		Book Value
Senior Secured Credit Facility	2024	$	—	$	—	$	27,000
Line of Credit	2024	—		—		20,227
2021 8% Senior Secured Notes	2026	1,175,000		1,160,271		1,157,731
2016 7 7/8% Senior Unsecured Notes	2024	500,000		495,033		493,599
MGE Niagara Credit Facility
Revolving	2024	—		—		27,534
Swingline	2024	14,372		14,372		4,333
Term Loan	2024	65,926		65,322		68,965
MGE Niagara Convertible Debenture	2040	31,024		31,024		31,468
Inspire Korea Credit Facility	2025	321,272		267,961		—
MGE Korea Term Loan	2027	298,872		203,467		—
Mohegan Expo Credit Facility (1)	2022	—		—		25,697
Guaranteed Credit Facility	2023	25,812		25,459		27,208
Redemption Note Payable	2024	44,620		39,909		53,130
Other	Varies	1,402		1,402		1,862
Long-term debt		2,478,300		2,304,220		1,938,754
Current portion of long-term debt		(44,012)		(44,012)		(80,276)
Long-term debt, net of current portion		$	2,434,288	$	2,260,208	$	1,858,478
Fair value		$	2,297,568
Unamortized discounts and debt issuance costs				$	174,080	$	34,022

__________

(1) Repaid at maturity on April 1, 2022.

Amendment to Senior Secured Credit Facility

On May 31, 2022, the Company entered into a first amendment to its Senior Secured Credit Facility. Among other things, the amendment extended the maturity date of the Senior Secured Credit Facility from April 14, 2023 to April 12, 2024 and replaced the interest rate based on the London Interbank Offered Rate with an interest rate based on a secured overnight financing rate (“SOFR”).

Borrowings under the Senior Secured Credit Facility bear interest as follows: (i) for base rate loans, a base rate equal to the highest of (x) the prime rate, (y) the federal funds rate plus 50 basis points and (z) the daily SOFR rate plus a 0.10% credit spread adjustment (subject to a 0.75% floor) plus 100 basis points, plus a leverage-based margin of 100 to 275 basis points and (ii) for SOFR loans, the applicable SOFR rate plus a 0.10% credit spread adjustment (subject to a 0.75% floor), plus a leverage-based margin of 200 to 375 basis points.

The Company incurred $0.7 million in costs in connection with this transaction during fiscal 2022. These debt issuance costs were reflected as an asset and are being amortized over the term of the Senior Secured Credit Facility using the effective interest method.

Amendment to Line of Credit

On May 31, 2022, in connection with the amendment to the Company’s Senior Secured Credit Facility, the Company also entered into a first amendment to its Line of Credit. This amendment extended the maturity date of the Line of Credit from April 14, 2023 to April 12, 2024 and replaced the interest rate based on the London Interbank Offered Rate with a rate based on SOFR.

Inspire Korea Financing

Inspire Korea Credit Facility

On September 24, 2021, Inspire Korea entered into a loan agreement providing for a loan commitment of up to 1.04 trillion Korean won (“KRW”) in two tranches (the “Inspire Korea Credit Facility”), comprised of a 740.0 billion KRW credit facility (the “Tranche A Facility”) and a 300.0 billion KRW credit facility (the “Tranche B Facility”). The Inspire Korea Credit Facility

10

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

is being used to pay for the construction, operation, financial and other project costs in connection with Inspire Korea (see Note 1). All obligations under the Inspire Korea Credit Facility are secured by liens on substantially all assets of, and equity interests in, Inspire Korea (subject to certain exceptions and limitations). The Inspire Korea Credit Facility matures 48 months after the date of the first draw, which was November 29, 2021.

Inspire Korea Credit Facility Summary
	September 30, 2021				June 30, 2022
	Total Capacity				Outstanding Borrowings (Face Value)
(in millions)	KRW		USD		KRW		USD
Tranche A Facility	₩	740,000.0	$	625.1	₩	296,000.0	$	228.6
Tranche B Facility	₩	300,000.0	$	253.4	₩	120,000.0	$	92.7
Total	₩	1,040,000.0	$	878.5	₩	416,000.0	$	321.3

Mandatory prepayments are required under the Inspire Korea Credit Facility in connection with certain specified asset dispositions or receipt of insurance proceeds, without a prepayment fee. The Inspire Korea Credit Facility may not be voluntarily prepaid in whole or in part until one year after the date of the first draw. After such date, any voluntary prepayment requires a prepayment fee as defined in the Inspire Korea Credit Facility agreement.

Loans outstanding under the Tranche A Facility bear interest at a fixed rate of 5.4% per annum or a floating rate equal to the sum of a base rate and an applicable margin (as defined in the Inspire Korea Credit Facility agreement). Loans outstanding under the Tranche B Facility bear interest at a fixed rate of 7.0% per annum or a floating rate equal to the sum of a base rate and an applicable margin (as defined in the Inspire Korea Credit Facility agreement). The Inspire Korea Credit Facility includes an interest reserve whereby a portion of loan proceeds is reserved for payment of interest. Interest on Tranche A Facility loans is fully reserved and interest on Tranche B Facility loans is reserved for 36 months. If any portion of the Inspire Korea Credit Facility is undrawn, Inspire Korea is required to pay a 0.3% commitment fee on the undrawn amount.

The Inspire Korea Credit Facility contains certain customary covenants applicable to Inspire Korea, including covenants governing: incurrence of indebtedness, incurrence of liens, investments, mergers or consolidations, asset sales, acquisitions of assets, the payment of dividends and other distributions and affiliate transactions. In addition, the Inspire Korea Credit Facility includes other covenants, representations and warranties and events of default that are customary for financing transactions of this type.

In connection with the Inspire Korea Credit Facility, the Company entered into a credit enhancement support agreement to provide up to $100.0 million credit enhancement support for Inspire Korea’s payment of principal, interest and other sums due under the Inspire Korea Credit Facility.

The Company incurred $59.1 million in costs in connection with this transaction during fiscal 2022. These debt issuance costs were reflected as a debt discount and are being amortized over the term of the Inspire Korea Credit Facility using the effective interest method.

MGE Korea Term Loan

On November 4, 2021, MGE Korea Limited (“MGE Korea”), an indirect wholly-owned subsidiary of the Company and parent company of Inspire Korea, entered into a $275.0 million secured term loan facility agreement (the “MGE Korea Term Loan”). MGE Korea received funding from the MGE Korea Term Loan on November 24, 2021 (the “Utilisation Date”). The MGE Korea Term Loan was primarily used to make a capital contribution to Inspire Korea in order to partially fund construction-related costs for Inspire Korea. The MGE Korea Term Loan matures 66 months after the Utilisation Date.

The MGE Korea Term Loan bears payment-in-kind interest at a rate of 17.0% per annum, to be compounded and capitalized at the end of each quarter, or paid in cash if so elected by MGE Korea.

If the MGE Korea Term Loan is voluntarily prepaid, if certain mandatory prepayment events are triggered or if it is repaid following a notice of acceleration, MGE Korea must pay a prepayment fee (as defined in the MGE Korea Term Loan agreement). The MGE Korea Term Loan is secured by a fixed charge over 100% of MGE Korea’s share capital and a debenture over the assets of MGE Korea (subject to certain exceptions and limitations).

The MGE Korea Term Loan contains certain customary covenants, including covenants governing: incurrence of indebtedness, incurrence of liens, payment of dividends and other distributions, disposals, acquisitions and investments, arm’s length transactions, mergers and the development and management of Inspire Korea. In addition, the MGE Korea Term Loan includes

11

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

financial maintenance covenants pertaining to net leverage and debt service coverage of MGE Korea and Inspire Korea, and contains a requirement that Inspire Korea maintain a minimum cash balance in the amounts set forth in the MGE Korea Term Loan. The MGE Korea Term Loan also contains customary events of default relating to, among other things, failure to make payments, breach of covenants and breach of representations.

The Company incurred $10.0 million in costs in connection with the MGE Korea Term Loan during fiscal 2022. These debt issuance costs were reflected as a debt discount and are being amortized over the term of the MGE Korea Term Loan using the effective interest method. In addition, the allocation of proceeds to the issuance of warrants and associated put option (see below) resulted in an original issue discount on the MGE Korea Term Loan of $84.8 million, which will also be amortized over the term of the MGE Korea Term Loan using the effective interest method.

MGE Korea Warrant Agreement

In connection with the MGE Korea Term Loan, on November 4, 2021, MGE Korea Holding III Limited (“MGE Korea Holding III”), the parent company of MGE Korea, entered into a warrant agreement (the “Warrant Agreement”) to issue detachable warrants (the “Warrants”). The Warrants can be converted into up to a total of 4,400 shares of capital in MGE Korea Holding III at an initial exercise price of $0.01 per share. At the time of issuance, the Warrants represented 22.0% of the fully-diluted share capital of MGE Korea Holding III.

The Warrants are generally exercisable at any time after the third anniversary of the Utilisation Date (November 2024) until the tenth anniversary of the Utilisation Date (November 2031), but may be exercised earlier upon certain triggering events defined in the Warrant Agreement. Upon the earlier of (i) the tenth anniversary of the Utilisation Date (November 2031) and (ii) the consummation of an Exit Event (as defined in the Warrant Agreement), all unexercised Warrants will expire.

Warrant holders do not have any rights held by holders of shares in the capital of MGE Korea Holding III to vote or to receive dividends and other distributions (other than as set forth in the Warrant Agreement). Warrant holders and shareholders of MGE Korea Holding III have certain preemptive rights in relation to any proposed issuance of equity securities by MGE Korea Holding III or certain affiliates (as defined in the Warrant Agreement), subject to customary exceptions.

Holders of unexercised Warrants have the right to require the parent of MGE Korea Holding III (the “Parent”) to purchase all of the unexercised Warrants that they hold at certain relevant times (the “Put Option”). In turn, the Parent has the right to require the holders of unexercised Warrants to sell all of the unexercised Warrants they hold at certain relevant times (the “Call Option”). Both the Put Option and the Call Option are exercisable at any time in the period from (and including) the date six years and six months after the Utilisation Date (May 2028) until the tenth anniversary of the Utilisation Date (November 2031). The aggregate cash purchase price for both the Put Option and the Call Option equals the higher of: (i) the fair market value of the relevant unexercised Warrants and (ii) $110.0 million, multiplied by a fraction, the numerator of which is the number of the relevant unexercised Warrants and the denominator of which is the total number of Warrants.

The Warrants and the Put Option are classified as long-term liabilities and are re-measured at their estimated fair values at each reporting date. The estimated fair value of the Warrants and the Put Option was determined by utilizing the income approach (discounted cash flow method) and a binomial lattice model. This valuation approach utilized Level 3 inputs. The primary unobservable inputs utilized were the discount rate, which was 11.5%, and the expected volatility of the underlying stock price, which was 55.0%.

Debt issuance costs incurred during fiscal 2022 and allocated to the Warrants and the Put Option totaling $4.2 million were expensed on the Utilisation Date and recorded within Corporate costs and expenses.

Warrants and Put Option
(in thousands)
Balance, March 31, 2022	$	90,932
Additions	—
Unrealized gain	(26,796)
Balance, June 30, 2022	$	64,136
Balance, September 30, 2021	$	—
Additions	84,771
Unrealized gain	(20,635)
Balance, June 30, 2022	$	64,136

12

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Note 3 — Revenue Recognition

Revenue Disaggregation

The Company is primarily engaged in the ownership, operation, management and development of integrated entertainment facilities both domestically and internationally. The Company’s current wholly-owned operations are primarily focused within Connecticut and Pennsylvania. The Company also currently operates and manages other gaming facilities elsewhere within the United States and Canada. The Company generates revenues by providing the following types of goods and services: gaming, food and beverage, hotel and retail, entertainment and other, which includes management and development fees earned.

Revenue Disaggregation by Geographic Location
	Three Months Ended June 30, 2022
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	157,933	$	59,291	$	59,244	$	17,505
Food and beverage	23,120		4,251		7,235		1,016
Hotel	24,025		1,631		4,601		(1)
Retail, entertainment and other	31,387		1,610		8,547		15,683
Net revenues	$	236,465	$	66,783	$	79,627	$	34,203
	Three Months Ended June 30, 2021
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	163,938	$	57,134	$	13,283	$	6,934
Food and beverage	16,770		2,940		—		1,116
Hotel	20,758		1,430		—		—
Retail, entertainment and other	18,595		1,427		1,097		22,256
Net revenues	$	220,061	$	62,931	$	14,380	$	30,306
	Nine Months Ended June 30, 2022
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	479,297	$	172,570	$	151,254	$	38,075
Food and beverage	66,774		11,265		14,957		3,161
Hotel	69,469		4,561		10,963		(4)
Retail, entertainment and other	87,981		4,766		17,545		44,883
Net revenues	$	703,521	$	193,162	$	194,719	$	86,115
	Nine Months Ended June 30, 2021
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	434,928	$	141,795	$	38,502	$	8,449
Food and beverage	39,022		4,913		—		1,274
Hotel	52,566		3,327		—		(11)
Retail, entertainment and other	48,458		3,357		2,691		57,005
Net revenues	$	574,974	$	153,392	$	41,193	$	66,717

13

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Lease Revenue
	Three Months Ended
	June 30, 2022				June 30, 2021
(in thousands)	Hotel		Retail, Entertainment and Other		Hotel		Retail, Entertainment and Other
Fixed rent	$	16,918	$	1,670	$	14,635	$	742
Variable rent	—		3,169		—		1,634
Total	$	16,918	$	4,839	$	14,635	$	2,376
	Nine Months Ended
	June 30, 2022				June 30, 2021
(in thousands)	Hotel		Retail, Entertainment and Other		Hotel		Retail, Entertainment and Other
Fixed rent	$	48,932	$	5,113	$	36,137	$	3,626
Variable rent	—		7,843		—		3,079
Total	$	48,932	$	12,956	$	36,137	$	6,705

Contract and Contract-related Assets

As of June 30, 2022 and September 30, 2021, contract assets related to the MGE Niagara Resorts Casino Operating and Services Agreement with the Ontario Lottery and Gaming Corporation totaled $101.6 million and $119.9 million, respectively.

Accounts Receivable, Net
(in thousands)	June 30, 2022		September 30, 2021
Gaming	$	38,051	$	37,921
Food and beverage	22		13
Hotel	4,682		3,106
Retail, entertainment and other	29,394		19,099
Accounts receivable	72,149		60,139
Allowance for doubtful accounts	(22,278)		(19,367)
Accounts receivable, net	$	49,871	$	40,772

Contract and Contract-related Liabilities

A difference may exist between the timing of cash receipts from patrons and the recognition of revenues, resulting in a contract or contract-related liability. In general, the Company has three types of such liabilities: (1) outstanding gaming chips and slot tickets liability, which represents amounts owed in exchange for outstanding gaming chips and slot tickets held by patrons, (2) loyalty points deferred revenue liability and (3) patron advances and other liability, which primarily represents funds deposited in advance by patrons for gaming and advance payments by patrons for goods and services such as advance ticket sales, deposits on rooms and convention space and gift card purchases. These liabilities are generally expected to be recognized as revenues within one year and are recorded within other current liabilities.

(in thousands)	June 30, 2022		September 30, 2021
Outstanding gaming chips and slot tickets liability	$	11,908	$	9,632
Loyalty points deferred revenue liability	40,962		42,663
Patron advances and other liability	32,515		30,166
Total	$	85,385	$	82,461

As of June 30, 2022 and September 30, 2021, customer contract liabilities related to Mohegan Sun Pocono's revenue sharing agreement with Unibet Interactive Inc. totaled $14.7 million and $15.8 million, respectively, and were primarily recorded within other long-term liabilities.

14

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Note 4 — Segment Reporting

The Company, either directly or through subsidiaries, operates Mohegan Sun, along with its other Connecticut operations (the “Connecticut Facilities”), Mohegan Sun Pocono, along with its other Pennsylvania operations (the “Pennsylvania Facilities”) and the MGE Niagara Resorts. Certain other properties that are managed or under development by the Company are identified as the management, development and other reportable segment.

The Company's chief operating decision maker currently reviews and assesses the performance and operating results and determines the proper allocation of resources to the Connecticut Facilities, the Pennsylvania Facilities, the MGE Niagara Resorts and the properties managed or under development on a separate basis. Accordingly, the Company has four separate reportable segments: (i) Mohegan Sun, which includes the operations of the Connecticut Facilities, (ii) Mohegan Sun Pocono, which includes the operations of the Pennsylvania Facilities, (iii) the MGE Niagara Resorts and (iv) management, development and other. Certain other gaming and entertainment operations (“all other”), which are not individually reportable segments, the Company's corporate functions and inter-segment activities are each disclosed separately in the following segment disclosures to reconcile to consolidated results.

Net Revenues
	Three Months Ended				Nine Months Ended
(in thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Mohegan Sun	$	236,465	$	220,061	$	703,521	$	574,974
Mohegan Sun Pocono	66,783		62,931		193,162		153,392
MGE Niagara Resorts	79,627		14,380		194,719		41,193
Management, development and other	16,817		21,782		46,334		53,691
All other	18,776		8,362		42,231		10,077
Corporate	85		162		471		2,949
Inter-segment	(1,475)		511		(2,921)		1,322
Total	$	417,078	$	328,189	$	1,177,517	$	837,598

15

MOHEGAN TRIBAL GAMING AUTHORITY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Income (Loss) from Operations
	Three Months Ended				Nine Months Ended
(in thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Mohegan Sun	$	58,744	$	65,183	$	165,088	$	144,195
Mohegan Sun Pocono	11,917		12,319		33,641		20,116
MGE Niagara Resorts	14,962		(11,755)		24,566		(35,553)
Management, development and other	8,269		5,711		(16,945)		12,711
All other	6,798		(1,045)		6,540		(499)
Corporate	(10,634)		(6,374)		(30,175)		(21,459)
Inter-segment	70		2		56		(4)
Total	$	90,126	$	64,041	$	182,771	$	119,507
Capital Expenditures Incurred
					Nine Months Ended
(in thousands)					June 30, 2022		June 30, 2021
Mohegan Sun					$	19,253	$	12,680
Mohegan Sun Pocono					6,750		4,182
MGE Niagara Resorts					11,176		9,654
Management, development and other					154,041		6,974
All other					(231)		89,019
Corporate					304		307
Total					$	191,293	$	122,816
Total Assets
(in thousands)					June 30, 2022		September 30, 2021
Mohegan Sun					$	1,231,731	$	1,267,538
Mohegan Sun Pocono					404,607		408,187
MGE Niagara Resorts					503,402		561,812
Management, development and other					849,062		407,831
All other					101,154		98,945
Corporate					1,008,920		996,040
Inter-segment					(1,030,191)		(1,010,476)
Total					$	3,068,685	$	2,729,877

Note 5 — Commitments and Contingencies

The Company is a defendant in various claims and legal actions resulting from its normal course of business, primarily relating to personal injuries to patrons and damages to patrons' personal assets. The Company estimates litigation claims expense and accrues for such liabilities based upon historical experience. In management's opinion, the aggregate liability, if any, arising from such legal actions will not have a material impact on the Company's financial position, results of operations or cash flows.

16

In this filing, the words “Company,” “we,” “our” and “us” refer to the Mohegan Tribal Gaming Authority, inclusive of its consolidated subsidiaries, unless otherwise stated or the context otherwise requires.

We also refer to: (i) our Condensed Consolidated Financial Statements as our “Financial Statements,” (ii) our Condensed Consolidated Balance Sheets as our “Balance Sheets” and (iii) our Condensed Consolidated Statements of Operations and Comprehensive Income (or Loss) as our “Statements of Operations,” where applicable. Note references are to the notes to the condensed consolidated financial statements included within our Financial Statements.

The following discussion and analysis of the financial position and operating results of the Company for the three and nine months ended June 30, 2022 and 2021 should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto and other financial information included elsewhere in this Quarterly Report on Form 10-Q, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021 (the “September 30, 2021 10-K”).

The statements in this discussion regarding our expectations related to our future performance, liquidity and capital resources, and other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties. Our actual results may differ materially from those contained in or implied by any forward-looking statements. See “Cautionary Statements Regarding Forward-Looking Statements” within this Quarterly Report on Form 10-Q.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

We were established by the Mohegan Tribe of Indians of Connecticut (the “Mohegan Tribe”) in July 1995. We have the exclusive authority to conduct and regulate gaming activities for the Mohegan Tribe on tribal lands and the non-exclusive authority to conduct such activities elsewhere. The Mohegan Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land.

We are primarily engaged in the ownership, operation and development of integrated entertainment facilities. We currently own two facilities in the United States and operate five facilities in the United States and Canada. We are also currently developing a facility in South Korea, the Inspire Entertainment Resort located adjacent to the Incheon International Airport (“Inspire Korea”).

Impact of the COVID-19 Pandemic

In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic and the United States federal government declared it a national emergency. The spread of COVID-19 has affected most segments of the global economy, including our operations. In March 2020, we temporarily suspended operations at our properties in the United States and Canada to ensure the health and safety of our employees, guests and the surrounding communities in which we operate, consistent with directives from various governmental bodies. All of our properties in the United States were reopened by July 2020. Our properties in Canada reopened in July 2021, but were temporarily closed again from January 5, 2022 through January 30, 2022 due to a resurgence of COVID-19 at that time.

COVID-19 has had a significant impact on our operations, the full extent of which depends on future developments which are highly uncertain and cannot be predicted with confidence. Such developments include the following:

•the duration of COVID-19 or the extent of any resurgence or variants of COVID-19;

•the manner in which our guests, suppliers and other third parties respond to COVID-19, including the perception of safety and health measures we implemented;

•new information that may emerge concerning the severity of COVID-19 and the actions to contain or treat it;

•general economic conditions; and

•consumer confidence.

Accordingly, we cannot reasonably estimate the extent to which COVID-19 will further impact our future financial condition, results of operations and cash flows.

We could experience other potential adverse impacts as a result of COVID-19, including, but not limited to, charges from further adjustments to the carrying value of our intangible assets, as well as other long-lived asset impairment charges. Actual results may differ materially from our current estimates as the scope of COVID-19 evolves, depending largely, but not exclusively, on the duration and extent of our business disruptions.

17

Discussion of Consolidated Operating Results

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

•relatively full periods of operations at our properties;

•a return to relatively normal operating conditions at our properties; and

•impairment charges related to Inspire Korea.

Consolidated Operating Results
	Three Months Ended June 30,				Variance				Nine Months Ended June 30,				Variance
(in thousands)	2022		2021		$		%		2022		2021		$		%
Net revenues:
Gaming	$	293,973	$	241,289	$	52,684	21.8	%	$	841,196	$	623,674	$	217,522	34.9	%
Food and beverage	35,622		20,826		14,796		71.0	%	96,157		45,209		50,948		112.7	%
Hotel	30,256		22,188		8,068		36.4	%	84,989		55,882		29,107		52.1	%
Retail, entertainment and other	57,227		43,886		13,341		30.4	%	155,175		112,833		42,342		37.5	%
Total	$	417,078	$	328,189	88,889		27.1	%	$	1,177,517	$	837,598	339,919		40.6	%
Operating costs and expenses:
Gaming	$	139,760	$	122,326	$	17,434	14.3	%	$	424,787	$	329,392	$	95,395	29.0	%
Food and beverage	29,521		17,544		11,977		68.3	%	79,724		40,640		39,084		96.2	%
Hotel	12,354		8,926		3,428		38.4	%	34,792		25,907		8,885		34.3	%
Retail, entertainment and other revenue	20,571		10,276		10,295		100.2	%	56,357		24,412		31,945		130.9	%
Advertising, general and administrative	79,377		55,661		23,716		42.6	%	226,770		154,165		72,605		47.1	%
Corporate	15,278		11,238		4,040		35.9	%	50,380		35,230		15,150		43.0	%
Depreciation and amortization	26,085		27,140		(1,055)		(3.9)	%	77,653		79,502		(1,849)		(2.3)	%
Impairment of tangible assets	—		—		—		—		17,679		—		17,679		N.M.
Impairment of intangible assets	—		—		—		—		12,869		—		12,869		N.M.
Other, net	4,006		11,037		(7,031)		(63.7)	%	13,735		28,843		(15,108)		(52.4)	%
Total	$	326,952	$	264,148	62,804		23.8	%	$	994,746	$	718,091	276,655		38.5	%

__________

N.M. - Not Meaningful.

18

Segment Operating Results
	Three Months Ended June 30,				Variance				Nine Months Ended June 30,				Variance
(in thousands)	2022		2021		$		%		2022		2021		$		%
Net revenues:
Mohegan Sun	$	236,465	$	220,061	$	16,404	7.5	%	$	703,521	$	574,974	$	128,547	22.4	%
Mohegan Sun Pocono	66,783		62,931		3,852		6.1	%	193,162		153,392		39,770		25.9	%
MGE Niagara Resorts	79,627		14,380		65,247		453.7	%	194,719		41,193		153,526		372.7	%
Management, development and other	16,817		21,782		(4,965)		(22.8)	%	46,334		53,691		(7,357)		(13.7)	%
All other	18,776		8,362		10,414		124.5	%	42,231		10,077		32,154		319.1	%
Corporate	85		162		(77)		(47.5)	%	471		2,949		(2,478)		(84.0)	%
Inter-segment	(1,475)		511		(1,986)		N.M.		(2,921)		1,322		(4,243)		N.M.
Total	$	417,078	$	328,189	88,889		27.1	%	$	1,177,517	$	837,598	339,919		40.6	%
Operating costs and expenses:
Mohegan Sun	$	177,721	$	154,878	$	22,843	14.7	%	$	538,433	$	430,779	$	107,654	25.0	%
Mohegan Sun Pocono	54,866		50,612		4,254		8.4	%	159,521		133,276		26,245		19.7	%
MGE Niagara Resorts	64,665		26,135		38,530		147.4	%	170,153		76,746		93,407		121.7	%
Management, development and other	8,548		16,071		(7,523)		(46.8)	%	63,279		40,980		22,299		54.4	%
All other	11,978		9,407		2,571		27.3	%	35,691		10,576		25,115		237.5	%
Corporate	10,719		6,536		4,183		64.0	%	30,646		24,408		6,238		25.6	%
Inter-segment	(1,545)		509		(2,054)		N.M.		(2,977)		1,326		(4,303)		N.M.
Total	$	326,952	$	264,148	62,804		23.8	%	$	994,746	$	718,091	276,655		38.5	%

__________

N.M. - Not Meaningful.

Mohegan Sun

Revenues

Net revenues increased $16.4 million, or 7.5%, for the three months ended June 30, 2022 compared with the same period in the prior year. Net revenues increased $128.5 million, or 22.4%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases were primarily driven by higher non-gaming revenues which benefited from strong overall business volumes reflecting a return to relatively normal operating conditions compared with the same periods in the prior year, which were negatively impacted by various COVID-19 restrictions. Overall non-gaming revenues also benefited from a full entertainment calendar compared with the same periods in the prior year in which the Mohegan Sun Arena was partially closed due to COVID-19. The growth in net revenues for the nine months ended June 30, 2022 also reflected higher gaming revenues. Slot revenues increased principally due to higher slot handle, while the growth in table game revenues reflected higher hold percentage.

Operating Costs and Expenses

Operating costs and expenses increased $22.8 million, or 14.7%, for the three months ended June 30, 2022 compared with the same period in the prior year. Operating costs and expenses increased $107.7 million, or 25.0%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases primarily reflected higher overall operating costs and expenses commensurate with the increases in net revenues and return to relatively normal operating conditions, including increased payroll costs, cost of goods sold and direct entertainment expenses, as well as higher costs related to advertising, utilities and certain other administrative services. The increase in operating costs and expenses for the nine months ended June 30, 2022 was also driven by higher slot win contribution.

Mohegan Sun Pocono

Revenues

Net revenues increased $3.9 million, or 6.1%, for the three months ended June 30, 2022 compared with the same period in the prior year. Net revenues increased $39.8 million, or 25.9%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases were primarily due to higher slot revenues driven by increased slot handle, as well as higher non-gaming revenues. In general, these results were driven by strong overall business volumes reflecting a return to relatively normal operating conditions compared to the same periods in the prior year, which were negatively impacted by various COVID-19 restrictions and the temporary closure of Mohegan Sun Pocono from December 12, 2020, through January 3, 2021.

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Operating Costs and Expenses

Operating costs and expenses increased $4.3 million, or 8.4%, for the three months ended June 30, 2022 compared with the same period in the prior year. Operating costs and expenses increased $26.2 million, or 19.7%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases primarily reflected higher Pennsylvania slot machine tax expenses driven by the increases in slot revenues, combined with higher overall operating costs and expenses commensurate with the return to relatively normal operating conditions.

MGE Niagara Resorts

Revenues

Net revenues increased $65.2 million, or 453.7%, for the three months ended June 30, 2022 compared with the same period in the prior year. Net revenues increased $153.5 million, or 372.7%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These results reflect relatively full periods of operations and a return to fairly normal operating conditions compared with the same periods in the prior year. The MGE Niagara Resorts were temporarily closed effective March 18, 2020, following the outbreak of COVID-19, and reopened on July 23, 2021 under various COVID-19 related restrictions. The MGE Niagara Resorts were temporarily closed again from January 5, 2022, through January 30, 2022, due to a resurgence of COVID-19 at that time. Net revenues for the three and nine months ended June 30, 2021 primarily reflect fixed service provider fees pursuant to the terms of our Casino Operating and Services Agreement with the Ontario Lottery and Gaming Corporation.

Operating Costs and Expenses

Operating costs and expenses increased $38.5 million, or 147.4%, for the three months ended June 30, 2022 compared with the same period in the prior year. Operating costs and expenses increased $93.4 million, or 121.7%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases primarily reflected higher operating costs and expenses commensurate with the growth in net revenues, combined with higher overall costs and expenses associated with relatively full periods of operations.

Management, Development and Other

Revenues

Net revenues decreased $5.0 million, or 22.8%, for the three months ended June 30, 2022 compared with the same period in the prior year. Net revenues decreased $7.4 million, or 13.7%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These declines were primarily driven by lower management fees from ilani Casino Resort, combined with the impact of non-recurring management fees associated with our prior management agreement with Paragon Casino Resort.

Operating Costs and Expenses

Operating costs and expenses decreased $7.5 million, or 46.8%, for the three months ended June 30, 2022 compared with the same period in the prior year. This decrease primarily reflected lower pre-opening costs and expenses related to Inspire Korea. Operating costs and expenses increased $22.3 million, or 54.4%, for the nine months ended June 30, 2022 compared with the same period in the prior year. As described in Note 1, the increase in operating costs and expenses for the nine months ended June 30, 2022 was primarily driven by $30.5 million in impairment charges related to Inspire Korea. These results were partially offset by lower pre-opening costs and expenses related to Inspire Korea.

All Other

Revenues

Net revenues increased $10.4 million, or 124.5%, for the three months ended June 30, 2022 compared with the same period in the prior year. Net revenues increased $32.2 million, or 319.1%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases were driven by incremental revenues generated by Mohegan Sun Las Vegas, which opened in March 2021, and our online casino gaming and sports wagering operations, which commenced in October 2021.

Operating Costs and Expenses

Operating costs and expenses increased $2.6 million, or 27.3%, for the three months ended June 30, 2022 compared with the same period in the prior year. Operating costs and expenses increased $25.1 million, or 237.5%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These results reflect incremental operating costs and expenses associated with Mohegan Sun Las Vegas and our online casino gaming and sports wagering operations.

Corporate

Revenues

Net revenues decreased $0.1 million, or 47.5%, for the three months ended June 30, 2022 compared with the same period in the prior year. This decrease was primarily driven by lower revenues generated by our “Play 4 Fun” online gaming operations. Net revenues decreased $2.5 million, or 84.0%, for the nine months ended June 30, 2022 compared with the same period in the prior

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year. This decline principally reflected the impact of non-recurring revenues generated by our construction group in the same period in the prior year.

Operating Costs and Expenses

Operating costs and expenses increased $4.2 million, or 64.0%, for the three months ended June 30, 2022 compared with the same period in the prior year. Operating costs and expenses increased $6.2 million, or 25.6%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases were primarily driven by higher payroll costs, as well as higher costs related to certain other professional and administrative services. The increase in operating costs and expenses for the nine months ended June 30, 2022 was partially offset by non-recurring construction related expenses.

Other Income (Expense)
	Three Months Ended June 30,				Variance				Nine Months Ended June 30,				Variance
(in thousands)	2022		2021		$		%		2022		2021		$		%
Interest income	$	64	$	125	$	(61)	(48.8)	%	$	313	$	129	$	184	142.6	%
Interest expense, net	(53,969)		(43,929)		(10,040)		(22.9)	%	(151,055)		(128,256)		(22,799)		(17.8)	%
Loss on modification and early extinguishment of debt	(3)		(20)		17		85.0	%	(3)		(23,978)		23,975		100.0	%
Gain on fair value adjustment	26,796		—		26,796		N.M.		20,635		—		20,635		N.M.
Other, net	83		2,373		(2,290)		(96.5)	%	(2,595)		5,665		(8,260)		N.M.
Income tax benefit (provision)	(3,534)		3,312		(6,846)		N.M.		(4,553)		10,101		(14,654)		N.M.

__________

N.M. - Not Meaningful.

Interest Expense

Interest expense increased $10.0 million, or 22.9%, for the three months ended June 30, 2022 compared with the same period in the prior year. Interest expense increased $22.8 million, or 17.8%, for the nine months ended June 30, 2022 compared with the same period in the prior year. These increases were partially offset by $6.0 million and $15.7 million in capitalized interest related to the Inspire Korea construction during the three and nine months ended June 30, 2022, respectively. The increases in interest expense were due to higher weighted average interest rate and weighted average outstanding debt. See Note 2 for additional information.

Loss on Modification and Early Extinguishment of Debt

Loss on modification and early extinguishment of debt primarily represents transaction costs expensed in connection with our January 2021 refinancing transactions.

Gain on Fair Value Adjustment

Gain on fair value adjustment is driven by changes in the estimated fair value of the warrants and put option related to Inspire Korea. See Note 2 for additional information.

Income Tax

Income tax benefit or provision is primarily driven by taxable losses incurred or taxable income generated by the MGE Niagara Resorts.

Seasonality

The gaming markets in the Northeastern United States and Niagara Falls, Canada, are seasonal in nature, with peak gaming activities often occurring during the months of May through August. Accordingly, our operating results for the three and nine months ended June 30, 2022 and 2021 are not necessarily indicative of operating results for other interim periods or an entire fiscal year.

Liquidity and Capital Resources

Liquidity

As of June 30, 2022 and September 30, 2021, we held cash and cash equivalents of $156.9 million and $149.8 million, respectively, of which the MGE Niagara Resorts held $30.1 million and $25.1 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 and impairment charges. Inclusive of letters of credit, which reduce borrowing availability, we had $261.0 million of borrowing capacity under our senior secured credit facility and line of credit as of June 30, 2022. In addition, inclusive of letters of credit, which reduce borrowing availability, the MGE Niagara Resorts

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had $113.6 million of borrowing capacity under the MGE Niagara revolving facility and MGE Niagara swingline facility as of June 30, 2022.

Cash provided by operating activities increased $83.4 million, or 57.5%, to $228.5 million for the nine months ended June 30, 2022 compared with $145.1 million in the same period in the prior year. The increase in cash provided by operating activities was driven by higher net income, after factoring in non-cash items, reflecting a return to relatively normal operating conditions at our properties. See “Discussion of Consolidated Operating Results” for additional information.

Cash used in investing activities increased $177.0 million, or 550.6%, to $209.2 million for the nine months ended June 30, 2022 compared with $32.2 million in the same period in the prior year. The increase in cash used in investing activities was primarily driven by higher capital expenditures related to Inspire Korea.

Cash provided by financing activities totaled $387.4 million for the nine months ended June 30, 2022 compared with cash used in financing activities of $81.1 million in the same period in the prior year. The increase in cash provided by financing activities was primarily driven by additional borrowings to fund the development of Inspire Korea.

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, finance and right-of-use operating lease obligations, distributions to the Mohegan Tribe, capital expenditures and working capital requirements for the next twelve months; however, we can provide no assurance in this regard.     

Critical Accounting Policies and Estimates

There has been no material change from the critical accounting policies and estimates previously disclosed in our September 30, 2021 10-K.

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Cautionary Statements Regarding Forward-Looking Information

Some information included in this Quarterly Report on Form 10-Q and other materials filed by us with the Securities and Exchange Commission (the “SEC”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include 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. These statements can sometimes 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. These risks and uncertainties include, but are not limited to, those relating to the following:

•the COVID-19 pandemic and the related social and economic disruptions;

•the financial performance of our various operations;

•the local, regional, national or global economic climate;

•increased competition, including the expansion of gaming in jurisdictions in which we own or operate gaming facilities;

•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;

•cyber security risks relating to our information technology and other systems, including misappropriation of patron information or other breaches of information security;

•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;

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

•unfavorable weather conditions;

•risks associated with operations in foreign jurisdictions;

•failure by our employees, agents, affiliates, vendors or businesses to comply with applicable laws, rules and regulations, including state gaming laws and regulations and anti-bribery laws such as the United States Foreign Corrupt Practices Act, and similar anti-bribery laws in other jurisdictions; and

•fluctuations in foreign currency exchange rates.

Additional information concerning potential factors that could affect our financial results is included in our September 30, 2021 10-K, as well as our other reports and filings with the SEC. The forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date of this report. We do not undertake any obligation to update or supplement 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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Item 3. 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 June 30, 2022, our primary exposure to market risk was interest rate risk associated with our credit facilities which accrued interest on the basis of base rate, secured overnight financing rate and Bankers’ Acceptance rate formulas, plus applicable rates, as defined under the credit facilities. Based on our variable rate outstanding debt as of June 30, 2022, a 100 basis point change in average interest rate would impact annual interest expense by approximately $1.8 million.

Item 4. 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 June 30, 2022. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (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 June 30, 2022, 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.

Changes in Internal Control Over Financial Reporting

There have been no changes 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 three months ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There has been no material change from the legal proceedings previously disclosed in our September 30, 2021 10-K.

Item 1A. Risk Factors

There has been no material change from the risk factors previously disclosed in our September 30, 2021 10-K.

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Item 6.    Exhibits

Exhibit No.	Description
4.1	Third Supplemental Indenture, dated as of April 1, 2022, among Mohegan Expo Center, LLC, the Mohegan Tribal Gaming Authority, the Mohegan Tribe of Indians of Connecticut and U.S. Bank Trust Company, National Association, as trustee, relating to the 8.000% Second Priority Senior Secured Notes due 2026 (filed as Exhibit 4.1 to the Mohegan Tribal Gaming Authority’s Quarterly Report on Form 10-Q for the period ended March 31, 2022, filed with the SEC on May 12, 2022 and incorporated by reference herein).
4.2	Third Supplemental Indenture, dated as of April 1, 2022, among Mohegan Expo Center, LLC, the Mohegan Tribal Gaming Authority, the Mohegan Tribe of Indians of Connecticut and U.S. Bank National Association, as trustee, relating to the 7.875% Senior Notes due 2024 (filed as Exhibit 4.2 to the Mohegan Tribal Gaming Authority’s Quarterly Report on Form 10-Q for the period ended March 31, 2022, filed with the SEC on May 12, 2022 and incorporated by reference herein).
10.1	First Amendment to Credit Agreement, dated as of May 31, 2022, by and among the Mohegan Tribe of Indians of Connecticut, the Mohegan Tribal Gaming Authority, the other loan parties party thereto, each of the lenders party thereto and Citizens Bank, N.A., as administrative agent (filed as Exhibit 10.1 to the Mohegan Tribal Gaming Authority's Form 8-K, filed with the SEC on June 3, 2022 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 (furnished herewith).
32.2	Section 1350 Certification of Chief Financial Officer (furnished 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).
104	Cover Page Interactive Data File (formatted as Inline XBRL).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Mohegan Tribal Gaming Authority has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

		MOHEGAN TRIBAL GAMING AUTHORITY
Date:	August 11, 2022	By:	/S/    RAYMOND PINEAULT
			Raymond Pineault Chief Executive Officer, Mohegan Tribal Gaming Authority (Principal Executive Officer)
Date:	August 11, 2022	By:	/S/    CAROL K. ANDERSON
			Carol K. Anderson Chief Financial Officer, Mohegan Tribal Gaming Authority (Principal Financial Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Raymond Pineault, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q 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 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 Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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:	August 11, 2022	/S/    RAYMOND PINEAULT
		Raymond Pineault Chief Executive Officer Mohegan Tribal Gaming Authority

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Carol K. Anderson, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q 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 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 Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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:	August 11, 2022	/S/    CAROL K. ANDERSON
		Carol K. Anderson 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, hereby certifies that, to his knowledge, on the date hereof:

(a)    this Quarterly Report on Form 10-Q of the Mohegan Tribal Gaming Authority filed on the date hereof with the Securities and Exchange Commission fully complies with the requirements of Exchange Act Section 13(a) or 15(d); and

(b)    information contained in this report fairly presents, in all material respects, the financial condition and results of operations of the Mohegan Tribal Gaming Authority.

/S/    RAYMOND PINEAULT

Raymond Pineault
Chief Executive Officer
Mohegan Tribal Gaming Authority

August 11, 2022

A signed original of this written statement required by Section 906 has been provided to the Mohegan Tribal Gaming Authority and will be retained by the Mohegan Tribal Gaming 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, hereby certifies that, to her knowledge, on the date hereof:

(a)    this Quarterly Report on Form 10-Q of the Mohegan Tribal Gaming Authority filed on the date hereof with the Securities and Exchange Commission fully complies with the requirements of Exchange Act Section 13(a) or 15(d); and

(b)    information contained in this report fairly presents, in all material respects, the financial condition and results of operations of the Mohegan Tribal Gaming Authority.

/S/    CAROL K. ANDERSON

Carol K. Anderson
Chief Financial Officer
Mohegan Tribal Gaming Authority

August 11, 2022

A signed original of this written statement required by Section 906 has been provided to the Mohegan Tribal Gaming Authority and will be retained by the Mohegan Tribal Gaming Authority and furnished to the Securities and Exchange Commission or its staff upon request.

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	Jun. 30, 2022 shares
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Entity Registrant Name	MOHEGAN TRIBAL GAMING AUTHORITY
Entity Tax Identification Number	06-1436334
Entity Address, Address Line One	One Mohegan Sun Boulevard,
Entity Address, City or Town	Uncasville,
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06382
City Area Code	860
Local Phone Number	862-8000
Entity Current Reporting Status	No
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Entity Small Business	false
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 156,907	$ 149,822
Restricted cash and cash equivalents	4,666	5,259
Accounts receivable, net	49,871	40,772
Inventories	20,272	18,455
Due from Ontario Lottery and Gaming Corporation	13,642	16,711
Contract asset	37,196	32,665
Other current assets	33,562	56,466
Total current assets	316,116	320,150
Restricted cash and cash equivalents	375,987	9,616
Property and equipment, net	1,598,135	1,531,619
Right-of-use assets	323,067	362,008
Intangible assets, net	313,034	327,255
Contract asset, net of current portion	64,442	87,262
Notes receivable	2,514	2,514
Other assets, net	75,390	89,453
Total assets	3,068,685	2,729,877
Current liabilities:
Current portion of long-term debt	44,012	80,276
Current portion of finance lease obligations	4,039	5,836
Current portion of operating lease obligations	5,510	9,616
Trade payables	11,551	23,675
Accrued payroll	62,249	53,352
Construction payables	31,849	53,120
Accrued interest payable	53,661	37,546
Due to Ontario Lottery and Gaming Corporation	2,502	22,253
Other current liabilities	178,720	159,802
Total current liabilities	394,093	445,476
Long-term debt, net of current portion	2,260,208	1,858,478
Finance lease obligations, net of current portion	109,882	109,189
Operating lease obligations, net of current portion	377,177	410,090
Warrants and put option liabilities	64,136	0
Accrued payroll	0	3,529
Other long-term liabilities	39,872	36,357
Total liabilities	3,245,368	2,863,119
Commitments and Contingencies
Capital:
Retained deficit	(134,001)	(133,087)
Accumulated other comprehensive loss	(45,204)	(2,065)
Total capital attributable to Mohegan Tribal Gaming Authority	(179,205)	(135,152)
Non-controlling interests	2,522	1,910
Total capital	(176,683)	(133,242)
Total liabilities and capital	$ 3,068,685	$ 2,729,877

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Net revenues	$ 417,078	$ 328,189	$ 1,177,517	$ 837,598
Operating costs and expenses:
Advertising, general and administrative, including related party transactions of $11,600, $6,327, $36,162 and $22,604, respectively	79,377	55,661	226,770	154,165
Corporate, including related party transactions of $1,726, $1,702, $5,746 and $4,966, respectively	15,278	11,238	50,380	35,230
Depreciation and amortization	26,085	27,140	77,653	79,502
Impairment of tangible assets	0	0	17,679	0
Impairment of intangible assets	0	0	12,869	0
Other, net	4,006	11,037	13,735	28,843
Total operating costs and expenses	326,952	264,148	994,746	718,091
Income from operations	90,126	64,041	182,771	119,507
Other income (expense):
Interest income	64	125	313	129
Interest expense, net	(53,969)	(43,929)	(151,055)	(128,256)
Loss on modification and early extinguishment of debt	(3)	(20)	(3)	(23,978)
Gain on fair value adjustment	26,796	0	20,635	0
Other, net	83	2,373	(2,595)	5,665
Total other expense	(27,029)	(41,451)	(132,705)	(146,440)
Income (loss) before income tax	63,097	22,590	50,066	(26,933)
Income tax benefit (provision)	(3,534)	3,312	(4,553)	10,101
Net income (loss)	59,563	25,902	45,513	(16,832)
Income attributable to non-controlling interests	(199)	(535)	(612)	(411)
Net income (loss) attributable to Mohegan Tribal Gaming Authority	59,364	25,367	44,901	(17,243)
Comprehensive income (loss):
Foreign currency translation adjustment	(29,723)	216	(43,139)	10,660
Other comprehensive income (loss)	(29,723)	216	(43,139)	10,660
Other comprehensive income attributable to non-controlling interests	0	0	0	(1,376)
Other comprehensive income (loss) attributable to Mohegan Tribal Gaming Authority	(29,723)	216	(43,139)	9,284
Comprehensive income (loss) attributable to Mohegan Tribal Gaming Authority	29,641	25,583	1,762	(7,959)
Gaming
Revenues:
Net revenues	293,973	241,289	841,196	623,674
Operating costs and expenses:
Operating costs and expenses	139,760	122,326	424,787	329,392
Food and beverage
Revenues:
Net revenues	35,622	20,826	96,157	45,209
Operating costs and expenses:
Operating costs and expenses	29,521	17,544	79,724	40,640
Hotel
Revenues:
Net revenues	30,256	22,188	84,989	55,882
Operating costs and expenses:
Operating costs and expenses	12,354	8,926	34,792	25,907
Retail, entertainment and other
Revenues:
Net revenues	57,227	43,886	155,175	112,833
Operating costs and expenses:
Operating costs and expenses	$ 20,571	$ 10,276	$ 56,357	$ 24,412

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Advertising, general and administrative	$ 79,377	$ 55,661	$ 226,770	$ 154,165
Corporate	15,278	11,238	50,380	35,230
Gaming
Operating costs and expenses	139,760	122,326	424,787	329,392
Hotel
Operating costs and expenses	12,354	8,926	34,792	25,907
Affiliates
Advertising, general and administrative	11,600	6,327	36,162	22,604
Corporate	1,726	1,702	5,746	4,966
Affiliates | Gaming
Operating costs and expenses	808	(345)	2,426	1,262
Affiliates | Hotel
Operating costs and expenses	$ 2,161	$ 2,161	$ 6,483	$ 6,483

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statements of Changes in Capital
Total capital at beginning of period	$ (188,945)	$ (132,108)	$ (133,242)	$ (67,989)
Net income (loss)	59,563	25,902	45,513	(16,832)
Foreign currency translation adjustment	(29,723)	216	(43,139)	10,660
Contribution from Mohegan Tribe		2,814	325	2,814
Distributions to Mohegan Tribe	(17,500)	(15,000)	(45,500)	(39,000)
Distributions to Salishan Company, LLC related to the Cowlitz Project	(78)	(159)	(640)	(420)
Other				(7,568)
Total capital at end of period	(176,683)	(118,335)	(176,683)	(118,335)
Total Capital Attributable to Mohegan Tribal Gaming Authority
Statements of Changes in Capital
Total capital at beginning of period	(191,268)	(133,272)	(135,152)	(75,469)
Net income (loss)	59,364	25,367	44,901	(17,243)
Foreign currency translation adjustment	(29,723)	216	(43,139)	9,284
Contribution from Mohegan Tribe		2,814	325	2,814
Distributions to Mohegan Tribe	(17,500)	(15,000)	(45,500)	(39,000)
Distributions to Salishan Company, LLC related to the Cowlitz Project	(78)	(159)	(640)	(420)
Total capital at end of period	(179,205)	(120,034)	(179,205)	(120,034)
Retained Deficit
Statements of Changes in Capital
Total capital at beginning of period	(175,787)	(142,563)	(133,087)	(75,692)
Net income (loss)	59,364	25,367	44,901	(17,243)
Distributions to Mohegan Tribe	(17,500)	(12,186)	(45,175)	(36,186)
Distributions to Salishan Company, LLC related to the Cowlitz Project	(78)	(159)	(640)	(420)
Total capital at end of period	(134,001)	(129,541)	(134,001)	(129,541)
Additional Paid-in Capital
Statements of Changes in Capital
Total capital at beginning of period	0	0	0	0
Contribution from Mohegan Tribe		2,814	325	2,814
Distributions to Mohegan Tribe		(2,814)	(325)	(2,814)
Total capital at end of period	0	0	0	0
Accumulated Other Comprehensive Income (Loss)
Statements of Changes in Capital
Total capital at beginning of period	(15,481)	9,291	(2,065)	223
Foreign currency translation adjustment	(29,723)	216	(43,139)	9,284
Total capital at end of period	(45,204)	9,507	(45,204)	9,507
Non-controlling Interests
Statements of Changes in Capital
Total capital at beginning of period	2,323	1,164	1,910	7,480
Net income (loss)	199	535	612	411
Foreign currency translation adjustment				1,376
Other				(7,568)
Total capital at end of period	$ 2,522	$ 1,699	$ 2,522	$ 1,699

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows provided by operating activities:
Net income (loss)	$ 45,513	$ (16,832)
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:
Depreciation and amortization	77,653	79,502
Non-cash operating lease expense	6,371	9,072
Accretion of discounts	1,582	974
Amortization of discounts and debt issuance costs	11,548	15,309
Paid-in-kind interest	22,065	0
Gain on fair value adjustment	(20,635)	0
Loss on modification and early extinguishment of debt	0	23,725
Provision for losses on receivables	3,902	3,493
Deferred income taxes	4,634	(10,382)
Impairment charges	30,548	0
Other, net	2,839	(6,612)
Changes in operating assets and liabilities:
Accounts receivable, net	(13,392)	(7,823)
Inventories	(1,858)	(689)
Due from Ontario Lottery and Gaming Corporation	3,205	(194)
Contract asset	16,495	6,185
Other assets	25,490	(328)
Trade payables	(12,178)	2,565
Accrued interest payable	14,607	23,421
Due to Ontario Lottery and Gaming Corporation	(19,667)	6,101
Operating lease obligations	(3,600)	13,016
Other liabilities	33,375	4,617
Net cash flows provided by operating activities	228,497	145,120
Cash flows used in investing activities:
Purchases of property and equipment	(201,549)	(33,358)
Investments related to the Inspire Korea project	(5,611)	0
Other, net	(2,029)	1,206
Net cash flows used in investing activities	(209,189)	(32,152)
Cash flows provided by (used in) financing activities:
Proceeds from revolving credit facilities	797,091	697,153
Repayments on revolving credit facilities	(861,836)	(804,153)
Proceeds from issuance of long-term debt	619,570	1,223,802
Repayments of long-term debt	(48,502)	(1,135,356)
Payments on finance lease obligations	(4,614)	(808)
Contributions from affiliates	325	2,814
Distributions to affiliates	(46,140)	(39,420)
Payments of financing fees	(66,911)	(24,082)
Other, net	(1,607)	(1,000)
Net cash flows provided by (used in) financing activities	387,376	(81,050)
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents	406,684	31,918
Effect of exchange rate on cash, cash equivalents, restricted cash and restricted cash equivalents	(33,821)	1,625
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	164,697	142,069
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	537,560	175,612
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the condensed consolidated balance sheets:
Cash and cash equivalents	156,907	158,406
Restricted cash and cash equivalents, current	4,666	2,002
Restricted cash and cash equivalents, non-current	375,987	15,204
Cash, cash equivalents, restricted cash and restricted cash equivalents	537,560	175,612
Supplemental disclosures:
Cash paid for interest	107,801	86,810
Non-cash transactions:
Right-of-use assets additions (reductions)	(27,363)	24,787
Right-of-use obligations additions (reductions)	(27,363)	24,154
Paid-in-kind interest capitalized	7,029	0
Paid-in-kind interest converted to debt	23,872	0
Increase in construction payables	0	44,735
Finance lease assets and obligations	0	79,102
Senior secured credit facility reduction	$ 0	$ 45,000

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Organization and Basis of Presentation

9 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Organization

The Mohegan Tribal Gaming Authority (the “Company,” “we,” “us,” or “our”) was established by the Mohegan Tribe of Indians of Connecticut (the “Mohegan Tribe”) in July 1995. We have the exclusive authority to conduct and regulate gaming activities for the Mohegan Tribe on tribal lands and the non-exclusive authority to conduct such activities elsewhere. The Mohegan Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land.

We are primarily engaged in the ownership, operation and development of integrated entertainment facilities. We currently own two facilities in the United States and operate five facilities in the United States and Canada. We are also currently developing a facility in South Korea, the Inspire Entertainment Resort located adjacent to the Incheon International Airport (“Inspire Korea”).

Impact of the COVID-19 Pandemic

In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic and the United States federal government declared it a national emergency. The spread of COVID-19 has affected most segments of the global economy, including our operations. In March 2020, we temporarily suspended operations at our properties in the United States and Canada to ensure the health and safety of our employees, guests and the surrounding communities in which we operate, consistent with directives from various governmental bodies. All of our properties in the United States were reopened by July 2020. Our properties in Canada reopened in July 2021, but were temporarily closed again from January 5, 2022 through January 30, 2022, due to a resurgence of COVID-19 at that time.

COVID-19 has had a significant impact on our operations, the full extent of which depends on future developments which are highly uncertain and cannot be predicted with confidence. Such developments include the following:

•the duration of COVID-19 or the extent of any resurgence or variants of COVID-19;

•the manner in which our guests, suppliers and other third parties respond to COVID-19, including the perception of safety and health measures we implemented;

•new information that may emerge concerning the severity of COVID-19 and the actions to contain or treat it;

•general economic conditions; and

•consumer confidence.

Accordingly, we cannot reasonably estimate the extent to which COVID-19 will further impact our future financial condition, results of operations and cash flows.

We could experience other potential adverse impacts as a result of COVID-19, including, but not limited to, charges from further adjustments to the carrying value of our intangible assets, as well as other long-lived asset impairment charges. Actual results may differ materially from our current estimates as the scope of COVID-19 evolves, depending largely, but not exclusively, on the duration and extent of our business disruptions.

Basis of Presentation 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In accordance with Rule 10-01, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by US GAAP. All adjustments, including normal recurring accruals and adjustments, necessary for a fair statement of our operating results for the interim period, have been included.

Our results of operations for these interim periods are not necessarily indicative of operating results for other interim periods, full fiscal years or any other periods, particularly given the impact of COVID-19 as discussed above.

The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. The preparation of financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures of contingent assets and liabilities.

Similar to other sovereign governments, the Mohegan Tribe and its entities, including the Company, are not subject to United States federal income taxes. However, certain of our non-tribal entities are subject to income taxes in various state and local jurisdictions within the United States and in Canada.

Inspire Korea

The initial phase of Inspire Korea primarily consists of an integrated entertainment resort. Design and construction work was temporarily paused in September 2020 while we were in the process of securing the necessary financing for the project, which was completed in November 2021 (see Note 2). During this temporary pause in construction, Inspire Korea obtained approval to modify its development plan and adjust the timing of a future sub-phase of the initial phase of the project.

On December 27, 2021, Inspire Korea elected to terminate a licensing arrangement for a previously-planned sub-phase and discontinue related design work. As a result, we recognized an intangible asset impairment of $12.9 million related to the licensing arrangement and a tangible asset impairment of $17.7 million on the related construction in progress.

Recently Issued Accounting Pronouncements

ASU 2019-12

In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which simplifies various aspects related to the accounting for income taxes. This new standard removes certain exceptions to the general principles in ASU 2019-12 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 was effective for annual reporting periods beginning after December 15, 2020. There was no effect on the Company’s financial statements from adopting this new standard.

ASU 2021-10

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”), which requires business entities to provide certain disclosures about government transactions that are accounted for by applying a grant or contribution accounting model by analogy to other accounting guidance. ASU 2021-10 is effective for annual reporting periods beginning after December 15, 2021. The Company is currently evaluating the effect ASU 2021-10 will have on its disclosures.

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Long-Term Debt

9 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

	June 30, 2022					September 30, 2021
(in thousands)	Final Maturity	Face Value		Book Value		Book Value
Senior Secured Credit Facility	2024	$	—	$	—	$	27,000
Line of Credit	2024	—		—		20,227
2021 8% Senior Secured Notes	2026	1,175,000		1,160,271		1,157,731
2016 7 7/8% Senior Unsecured Notes	2024	500,000		495,033		493,599
MGE Niagara Credit Facility
Revolving	2024	—		—		27,534
Swingline	2024	14,372		14,372		4,333
Term Loan	2024	65,926		65,322		68,965
MGE Niagara Convertible Debenture	2040	31,024		31,024		31,468
Inspire Korea Credit Facility	2025	321,272		267,961		—
MGE Korea Term Loan	2027	298,872		203,467		—
Mohegan Expo Credit Facility (1)	2022	—		—		25,697
Guaranteed Credit Facility	2023	25,812		25,459		27,208
Redemption Note Payable	2024	44,620		39,909		53,130
Other	Varies	1,402		1,402		1,862
Long-term debt		2,478,300		2,304,220		1,938,754
Current portion of long-term debt		(44,012)		(44,012)		(80,276)
Long-term debt, net of current portion		$	2,434,288	$	2,260,208	$	1,858,478
Fair value		$	2,297,568
Unamortized discounts and debt issuance costs				$	174,080	$	34,022

__________

(1) Repaid at maturity on April 1, 2022.

Amendment to Senior Secured Credit Facility

On May 31, 2022, the Company entered into a first amendment to its Senior Secured Credit Facility. Among other things, the amendment extended the maturity date of the Senior Secured Credit Facility from April 14, 2023 to April 12, 2024 and replaced the interest rate based on the London Interbank Offered Rate with an interest rate based on a secured overnight financing rate (“SOFR”).

Borrowings under the Senior Secured Credit Facility bear interest as follows: (i) for base rate loans, a base rate equal to the highest of (x) the prime rate, (y) the federal funds rate plus 50 basis points and (z) the daily SOFR rate plus a 0.10% credit spread adjustment (subject to a 0.75% floor) plus 100 basis points, plus a leverage-based margin of 100 to 275 basis points and (ii) for SOFR loans, the applicable SOFR rate plus a 0.10% credit spread adjustment (subject to a 0.75% floor), plus a leverage-based margin of 200 to 375 basis points.

The Company incurred $0.7 million in costs in connection with this transaction during fiscal 2022. These debt issuance costs were reflected as an asset and are being amortized over the term of the Senior Secured Credit Facility using the effective interest method.

Amendment to Line of Credit

On May 31, 2022, in connection with the amendment to the Company’s Senior Secured Credit Facility, the Company also entered into a first amendment to its Line of Credit. This amendment extended the maturity date of the Line of Credit from April 14, 2023 to April 12, 2024 and replaced the interest rate based on the London Interbank Offered Rate with a rate based on SOFR.

Inspire Korea Financing

Inspire Korea Credit Facility

On September 24, 2021, Inspire Korea entered into a loan agreement providing for a loan commitment of up to 1.04 trillion Korean won (“KRW”) in two tranches (the “Inspire Korea Credit Facility”), comprised of a 740.0 billion KRW credit facility (the “Tranche A Facility”) and a 300.0 billion KRW credit facility (the “Tranche B Facility”). The Inspire Korea Credit Facility

is being used to pay for the construction, operation, financial and other project costs in connection with Inspire Korea (see Note 1). All obligations under the Inspire Korea Credit Facility are secured by liens on substantially all assets of, and equity interests in, Inspire Korea (subject to certain exceptions and limitations). The Inspire Korea Credit Facility matures 48 months after the date of the first draw, which was November 29, 2021.

Inspire Korea Credit Facility Summary
	September 30, 2021				June 30, 2022
	Total Capacity				Outstanding Borrowings (Face Value)
(in millions)	KRW		USD		KRW		USD
Tranche A Facility	₩	740,000.0	$	625.1	₩	296,000.0	$	228.6
Tranche B Facility	₩	300,000.0	$	253.4	₩	120,000.0	$	92.7
Total	₩	1,040,000.0	$	878.5	₩	416,000.0	$	321.3

Mandatory prepayments are required under the Inspire Korea Credit Facility in connection with certain specified asset dispositions or receipt of insurance proceeds, without a prepayment fee. The Inspire Korea Credit Facility may not be voluntarily prepaid in whole or in part until one year after the date of the first draw. After such date, any voluntary prepayment requires a prepayment fee as defined in the Inspire Korea Credit Facility agreement.

Loans outstanding under the Tranche A Facility bear interest at a fixed rate of 5.4% per annum or a floating rate equal to the sum of a base rate and an applicable margin (as defined in the Inspire Korea Credit Facility agreement). Loans outstanding under the Tranche B Facility bear interest at a fixed rate of 7.0% per annum or a floating rate equal to the sum of a base rate and an applicable margin (as defined in the Inspire Korea Credit Facility agreement). The Inspire Korea Credit Facility includes an interest reserve whereby a portion of loan proceeds is reserved for payment of interest. Interest on Tranche A Facility loans is fully reserved and interest on Tranche B Facility loans is reserved for 36 months. If any portion of the Inspire Korea Credit Facility is undrawn, Inspire Korea is required to pay a 0.3% commitment fee on the undrawn amount.

The Inspire Korea Credit Facility contains certain customary covenants applicable to Inspire Korea, including covenants governing: incurrence of indebtedness, incurrence of liens, investments, mergers or consolidations, asset sales, acquisitions of assets, the payment of dividends and other distributions and affiliate transactions. In addition, the Inspire Korea Credit Facility includes other covenants, representations and warranties and events of default that are customary for financing transactions of this type.

In connection with the Inspire Korea Credit Facility, the Company entered into a credit enhancement support agreement to provide up to $100.0 million credit enhancement support for Inspire Korea’s payment of principal, interest and other sums due under the Inspire Korea Credit Facility.

The Company incurred $59.1 million in costs in connection with this transaction during fiscal 2022. These debt issuance costs were reflected as a debt discount and are being amortized over the term of the Inspire Korea Credit Facility using the effective interest method.

MGE Korea Term Loan

On November 4, 2021, MGE Korea Limited (“MGE Korea”), an indirect wholly-owned subsidiary of the Company and parent company of Inspire Korea, entered into a $275.0 million secured term loan facility agreement (the “MGE Korea Term Loan”). MGE Korea received funding from the MGE Korea Term Loan on November 24, 2021 (the “Utilisation Date”). The MGE Korea Term Loan was primarily used to make a capital contribution to Inspire Korea in order to partially fund construction-related costs for Inspire Korea. The MGE Korea Term Loan matures 66 months after the Utilisation Date.

The MGE Korea Term Loan bears payment-in-kind interest at a rate of 17.0% per annum, to be compounded and capitalized at the end of each quarter, or paid in cash if so elected by MGE Korea.

If the MGE Korea Term Loan is voluntarily prepaid, if certain mandatory prepayment events are triggered or if it is repaid following a notice of acceleration, MGE Korea must pay a prepayment fee (as defined in the MGE Korea Term Loan agreement). The MGE Korea Term Loan is secured by a fixed charge over 100% of MGE Korea’s share capital and a debenture over the assets of MGE Korea (subject to certain exceptions and limitations).

The MGE Korea Term Loan contains certain customary covenants, including covenants governing: incurrence of indebtedness, incurrence of liens, payment of dividends and other distributions, disposals, acquisitions and investments, arm’s length transactions, mergers and the development and management of Inspire Korea. In addition, the MGE Korea Term Loan includes

financial maintenance covenants pertaining to net leverage and debt service coverage of MGE Korea and Inspire Korea, and contains a requirement that Inspire Korea maintain a minimum cash balance in the amounts set forth in the MGE Korea Term Loan. The MGE Korea Term Loan also contains customary events of default relating to, among other things, failure to make payments, breach of covenants and breach of representations.

The Company incurred $10.0 million in costs in connection with the MGE Korea Term Loan during fiscal 2022. These debt issuance costs were reflected as a debt discount and are being amortized over the term of the MGE Korea Term Loan using the effective interest method. In addition, the allocation of proceeds to the issuance of warrants and associated put option (see below) resulted in an original issue discount on the MGE Korea Term Loan of $84.8 million, which will also be amortized over the term of the MGE Korea Term Loan using the effective interest method.

MGE Korea Warrant Agreement

In connection with the MGE Korea Term Loan, on November 4, 2021, MGE Korea Holding III Limited (“MGE Korea Holding III”), the parent company of MGE Korea, entered into a warrant agreement (the “Warrant Agreement”) to issue detachable warrants (the “Warrants”). The Warrants can be converted into up to a total of 4,400 shares of capital in MGE Korea Holding III at an initial exercise price of $0.01 per share. At the time of issuance, the Warrants represented 22.0% of the fully-diluted share capital of MGE Korea Holding III.

The Warrants are generally exercisable at any time after the third anniversary of the Utilisation Date (November 2024) until the tenth anniversary of the Utilisation Date (November 2031), but may be exercised earlier upon certain triggering events defined in the Warrant Agreement. Upon the earlier of (i) the tenth anniversary of the Utilisation Date (November 2031) and (ii) the consummation of an Exit Event (as defined in the Warrant Agreement), all unexercised Warrants will expire.

Warrant holders do not have any rights held by holders of shares in the capital of MGE Korea Holding III to vote or to receive dividends and other distributions (other than as set forth in the Warrant Agreement). Warrant holders and shareholders of MGE Korea Holding III have certain preemptive rights in relation to any proposed issuance of equity securities by MGE Korea Holding III or certain affiliates (as defined in the Warrant Agreement), subject to customary exceptions.

Holders of unexercised Warrants have the right to require the parent of MGE Korea Holding III (the “Parent”) to purchase all of the unexercised Warrants that they hold at certain relevant times (the “Put Option”). In turn, the Parent has the right to require the holders of unexercised Warrants to sell all of the unexercised Warrants they hold at certain relevant times (the “Call Option”). Both the Put Option and the Call Option are exercisable at any time in the period from (and including) the date six years and six months after the Utilisation Date (May 2028) until the tenth anniversary of the Utilisation Date (November 2031). The aggregate cash purchase price for both the Put Option and the Call Option equals the higher of: (i) the fair market value of the relevant unexercised Warrants and (ii) $110.0 million, multiplied by a fraction, the numerator of which is the number of the relevant unexercised Warrants and the denominator of which is the total number of Warrants.

The Warrants and the Put Option are classified as long-term liabilities and are re-measured at their estimated fair values at each reporting date. The estimated fair value of the Warrants and the Put Option was determined by utilizing the income approach (discounted cash flow method) and a binomial lattice model. This valuation approach utilized Level 3 inputs. The primary unobservable inputs utilized were the discount rate, which was 11.5%, and the expected volatility of the underlying stock price, which was 55.0%.

Debt issuance costs incurred during fiscal 2022 and allocated to the Warrants and the Put Option totaling $4.2 million were expensed on the Utilisation Date and recorded within Corporate costs and expenses.

Warrants and Put Option
(in thousands)
Balance, March 31, 2022	$	90,932
Additions	—
Unrealized gain	(26,796)
Balance, June 30, 2022	$	64,136
Balance, September 30, 2021	$	—
Additions	84,771
Unrealized gain	(20,635)
Balance, June 30, 2022	$	64,136

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Revenue Recognition

9 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Revenue Disaggregation

The Company is primarily engaged in the ownership, operation, management and development of integrated entertainment facilities both domestically and internationally. The Company’s current wholly-owned operations are primarily focused within Connecticut and Pennsylvania. The Company also currently operates and manages other gaming facilities elsewhere within the United States and Canada. The Company generates revenues by providing the following types of goods and services: gaming, food and beverage, hotel and retail, entertainment and other, which includes management and development fees earned.

Revenue Disaggregation by Geographic Location
	Three Months Ended June 30, 2022
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	157,933	$	59,291	$	59,244	$	17,505
Food and beverage	23,120		4,251		7,235		1,016
Hotel	24,025		1,631		4,601		(1)
Retail, entertainment and other	31,387		1,610		8,547		15,683
Net revenues	$	236,465	$	66,783	$	79,627	$	34,203
	Three Months Ended June 30, 2021
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	163,938	$	57,134	$	13,283	$	6,934
Food and beverage	16,770		2,940		—		1,116
Hotel	20,758		1,430		—		—
Retail, entertainment and other	18,595		1,427		1,097		22,256
Net revenues	$	220,061	$	62,931	$	14,380	$	30,306
	Nine Months Ended June 30, 2022
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	479,297	$	172,570	$	151,254	$	38,075
Food and beverage	66,774		11,265		14,957		3,161
Hotel	69,469		4,561		10,963		(4)
Retail, entertainment and other	87,981		4,766		17,545		44,883
Net revenues	$	703,521	$	193,162	$	194,719	$	86,115
	Nine Months Ended June 30, 2021
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	434,928	$	141,795	$	38,502	$	8,449
Food and beverage	39,022		4,913		—		1,274
Hotel	52,566		3,327		—		(11)
Retail, entertainment and other	48,458		3,357		2,691		57,005
Net revenues	$	574,974	$	153,392	$	41,193	$	66,717

Lease Revenue
	Three Months Ended
	June 30, 2022				June 30, 2021
(in thousands)	Hotel		Retail, Entertainment and Other		Hotel		Retail, Entertainment and Other
Fixed rent	$	16,918	$	1,670	$	14,635	$	742
Variable rent	—		3,169		—		1,634
Total	$	16,918	$	4,839	$	14,635	$	2,376
	Nine Months Ended
	June 30, 2022				June 30, 2021
(in thousands)	Hotel		Retail, Entertainment and Other		Hotel		Retail, Entertainment and Other
Fixed rent	$	48,932	$	5,113	$	36,137	$	3,626
Variable rent	—		7,843		—		3,079
Total	$	48,932	$	12,956	$	36,137	$	6,705

Contract and Contract-related Assets

As of June 30, 2022 and September 30, 2021, contract assets related to the MGE Niagara Resorts Casino Operating and Services Agreement with the Ontario Lottery and Gaming Corporation totaled $101.6 million and $119.9 million, respectively.

Accounts Receivable, Net
(in thousands)	June 30, 2022		September 30, 2021
Gaming	$	38,051	$	37,921
Food and beverage	22		13
Hotel	4,682		3,106
Retail, entertainment and other	29,394		19,099
Accounts receivable	72,149		60,139
Allowance for doubtful accounts	(22,278)		(19,367)
Accounts receivable, net	$	49,871	$	40,772

Contract and Contract-related Liabilities

A difference may exist between the timing of cash receipts from patrons and the recognition of revenues, resulting in a contract or contract-related liability. In general, the Company has three types of such liabilities: (1) outstanding gaming chips and slot tickets liability, which represents amounts owed in exchange for outstanding gaming chips and slot tickets held by patrons, (2) loyalty points deferred revenue liability and (3) patron advances and other liability, which primarily represents funds deposited in advance by patrons for gaming and advance payments by patrons for goods and services such as advance ticket sales, deposits on rooms and convention space and gift card purchases. These liabilities are generally expected to be recognized as revenues within one year and are recorded within other current liabilities.

(in thousands)	June 30, 2022		September 30, 2021
Outstanding gaming chips and slot tickets liability	$	11,908	$	9,632
Loyalty points deferred revenue liability	40,962		42,663
Patron advances and other liability	32,515		30,166
Total	$	85,385	$	82,461

As of June 30, 2022 and September 30, 2021, customer contract liabilities related to Mohegan Sun Pocono's revenue sharing agreement with Unibet Interactive Inc. totaled $14.7 million and $15.8 million, respectively, and were primarily recorded within other long-term liabilities.

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Segment Reporting

9 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company, either directly or through subsidiaries, operates Mohegan Sun, along with its other Connecticut operations (the “Connecticut Facilities”), Mohegan Sun Pocono, along with its other Pennsylvania operations (the “Pennsylvania Facilities”) and the MGE Niagara Resorts. Certain other properties that are managed or under development by the Company are identified as the management, development and other reportable segment.

The Company's chief operating decision maker currently reviews and assesses the performance and operating results and determines the proper allocation of resources to the Connecticut Facilities, the Pennsylvania Facilities, the MGE Niagara Resorts and the properties managed or under development on a separate basis. Accordingly, the Company has four separate reportable segments: (i) Mohegan Sun, which includes the operations of the Connecticut Facilities, (ii) Mohegan Sun Pocono, which includes the operations of the Pennsylvania Facilities, (iii) the MGE Niagara Resorts and (iv) management, development and other. Certain other gaming and entertainment operations (“all other”), which are not individually reportable segments, the Company's corporate functions and inter-segment activities are each disclosed separately in the following segment disclosures to reconcile to consolidated results.

Net Revenues
	Three Months Ended				Nine Months Ended
(in thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Mohegan Sun	$	236,465	$	220,061	$	703,521	$	574,974
Mohegan Sun Pocono	66,783		62,931		193,162		153,392
MGE Niagara Resorts	79,627		14,380		194,719		41,193
Management, development and other	16,817		21,782		46,334		53,691
All other	18,776		8,362		42,231		10,077
Corporate	85		162		471		2,949
Inter-segment	(1,475)		511		(2,921)		1,322
Total	$	417,078	$	328,189	$	1,177,517	$	837,598

Income (Loss) from Operations
	Three Months Ended				Nine Months Ended
(in thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Mohegan Sun	$	58,744	$	65,183	$	165,088	$	144,195
Mohegan Sun Pocono	11,917		12,319		33,641		20,116
MGE Niagara Resorts	14,962		(11,755)		24,566		(35,553)
Management, development and other	8,269		5,711		(16,945)		12,711
All other	6,798		(1,045)		6,540		(499)
Corporate	(10,634)		(6,374)		(30,175)		(21,459)
Inter-segment	70		2		56		(4)
Total	$	90,126	$	64,041	$	182,771	$	119,507
Capital Expenditures Incurred
					Nine Months Ended
(in thousands)					June 30, 2022		June 30, 2021
Mohegan Sun					$	19,253	$	12,680
Mohegan Sun Pocono					6,750		4,182
MGE Niagara Resorts					11,176		9,654
Management, development and other					154,041		6,974
All other					(231)		89,019
Corporate					304		307
Total					$	191,293	$	122,816
Total Assets
(in thousands)					June 30, 2022		September 30, 2021
Mohegan Sun					$	1,231,731	$	1,267,538
Mohegan Sun Pocono					404,607		408,187
MGE Niagara Resorts					503,402		561,812
Management, development and other					849,062		407,831
All other					101,154		98,945
Corporate					1,008,920		996,040
Inter-segment					(1,030,191)		(1,010,476)
Total					$	3,068,685	$	2,729,877

XML

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe Company is a defendant in various claims and legal actions resulting from its normal course of business, primarily relating to personal injuries to patrons and damages to patrons' personal assets. The Company estimates litigation claims expense and accrues for such liabilities based upon historical experience. In management's opinion, the aggregate liability, if any, arising from such legal actions will not have a material impact on the Company's financial position, results of operations or cash flows.

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Organization and Basis of Presentation (Policies)

9 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In accordance with Rule 10-01, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by US GAAP. All adjustments, including normal recurring accruals and adjustments, necessary for a fair statement of our operating results for the interim period, have been included.

Our results of operations for these interim periods are not necessarily indicative of operating results for other interim periods, full fiscal years or any other periods, particularly given the impact of COVID-19 as discussed above.

The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. The preparation of financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures of contingent assets and liabilities.

Similar to other sovereign governments, the Mohegan Tribe and its entities, including the Company, are not subject to United States federal income taxes. However, certain of our non-tribal entities are subject to income taxes in various state and local jurisdictions within the United States and in Canada.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

ASU 2019-12

In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which simplifies various aspects related to the accounting for income taxes. This new standard removes certain exceptions to the general principles in ASU 2019-12 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 was effective for annual reporting periods beginning after December 15, 2020. There was no effect on the Company’s financial statements from adopting this new standard.

ASU 2021-10

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”), which requires business entities to provide certain disclosures about government transactions that are accounted for by applying a grant or contribution accounting model by analogy to other accounting guidance. ASU 2021-10 is effective for annual reporting periods beginning after December 15, 2021. The Company is currently evaluating the effect ASU 2021-10 will have on its disclosures.

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Long-Term Debt (Tables)

9 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

	June 30, 2022					September 30, 2021
(in thousands)	Final Maturity	Face Value		Book Value		Book Value
Senior Secured Credit Facility	2024	$	—	$	—	$	27,000
Line of Credit	2024	—		—		20,227
2021 8% Senior Secured Notes	2026	1,175,000		1,160,271		1,157,731
2016 7 7/8% Senior Unsecured Notes	2024	500,000		495,033		493,599
MGE Niagara Credit Facility
Revolving	2024	—		—		27,534
Swingline	2024	14,372		14,372		4,333
Term Loan	2024	65,926		65,322		68,965
MGE Niagara Convertible Debenture	2040	31,024		31,024		31,468
Inspire Korea Credit Facility	2025	321,272		267,961		—
MGE Korea Term Loan	2027	298,872		203,467		—
Mohegan Expo Credit Facility (1)	2022	—		—		25,697
Guaranteed Credit Facility	2023	25,812		25,459		27,208
Redemption Note Payable	2024	44,620		39,909		53,130
Other	Varies	1,402		1,402		1,862
Long-term debt		2,478,300		2,304,220		1,938,754
Current portion of long-term debt		(44,012)		(44,012)		(80,276)
Long-term debt, net of current portion		$	2,434,288	$	2,260,208	$	1,858,478
Fair value		$	2,297,568
Unamortized discounts and debt issuance costs				$	174,080	$	34,022

__________

(1) Repaid at maturity on April 1, 2022.

Schedule of Inspire Integrated Resort Credit Facility Summary

Inspire Korea Credit Facility Summary
	September 30, 2021				June 30, 2022
	Total Capacity				Outstanding Borrowings (Face Value)
(in millions)	KRW		USD		KRW		USD
Tranche A Facility	₩	740,000.0	$	625.1	₩	296,000.0	$	228.6
Tranche B Facility	₩	300,000.0	$	253.4	₩	120,000.0	$	92.7
Total	₩	1,040,000.0	$	878.5	₩	416,000.0	$	321.3

Schedule of Warrants and Put Option

Warrants and Put Option
(in thousands)
Balance, March 31, 2022	$	90,932
Additions	—
Unrealized gain	(26,796)
Balance, June 30, 2022	$	64,136
Balance, September 30, 2021	$	—
Additions	84,771
Unrealized gain	(20,635)
Balance, June 30, 2022	$	64,136

XML

Revenue Recognition (Tables)

9 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Revenue Disaggregation by Geographic Location

Revenue Disaggregation by Geographic Location
	Three Months Ended June 30, 2022
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	157,933	$	59,291	$	59,244	$	17,505
Food and beverage	23,120		4,251		7,235		1,016
Hotel	24,025		1,631		4,601		(1)
Retail, entertainment and other	31,387		1,610		8,547		15,683
Net revenues	$	236,465	$	66,783	$	79,627	$	34,203
	Three Months Ended June 30, 2021
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	163,938	$	57,134	$	13,283	$	6,934
Food and beverage	16,770		2,940		—		1,116
Hotel	20,758		1,430		—		—
Retail, entertainment and other	18,595		1,427		1,097		22,256
Net revenues	$	220,061	$	62,931	$	14,380	$	30,306
	Nine Months Ended June 30, 2022
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	479,297	$	172,570	$	151,254	$	38,075
Food and beverage	66,774		11,265		14,957		3,161
Hotel	69,469		4,561		10,963		(4)
Retail, entertainment and other	87,981		4,766		17,545		44,883
Net revenues	$	703,521	$	193,162	$	194,719	$	86,115
	Nine Months Ended June 30, 2021
(in thousands)	Connecticut		Pennsylvania		Canada		Other
Gaming	$	434,928	$	141,795	$	38,502	$	8,449
Food and beverage	39,022		4,913		—		1,274
Hotel	52,566		3,327		—		(11)
Retail, entertainment and other	48,458		3,357		2,691		57,005
Net revenues	$	574,974	$	153,392	$	41,193	$	66,717

Schedule of Lease Revenue

Lease Revenue
	Three Months Ended
	June 30, 2022				June 30, 2021
(in thousands)	Hotel		Retail, Entertainment and Other		Hotel		Retail, Entertainment and Other
Fixed rent	$	16,918	$	1,670	$	14,635	$	742
Variable rent	—		3,169		—		1,634
Total	$	16,918	$	4,839	$	14,635	$	2,376
	Nine Months Ended
	June 30, 2022				June 30, 2021
(in thousands)	Hotel		Retail, Entertainment and Other		Hotel		Retail, Entertainment and Other
Fixed rent	$	48,932	$	5,113	$	36,137	$	3,626
Variable rent	—		7,843		—		3,079
Total	$	48,932	$	12,956	$	36,137	$	6,705

Schedule of Accounts Receivable, Net

Accounts Receivable, Net
(in thousands)	June 30, 2022		September 30, 2021
Gaming	$	38,051	$	37,921
Food and beverage	22		13
Hotel	4,682		3,106
Retail, entertainment and other	29,394		19,099
Accounts receivable	72,149		60,139
Allowance for doubtful accounts	(22,278)		(19,367)
Accounts receivable, net	$	49,871	$	40,772

Schedule of Contract and Contract-Related Liabilities

A difference may exist between the timing of cash receipts from patrons and the recognition of revenues, resulting in a contract or contract-related liability. In general, the Company has three types of such liabilities: (1) outstanding gaming chips and slot tickets liability, which represents amounts owed in exchange for outstanding gaming chips and slot tickets held by patrons, (2) loyalty points deferred revenue liability and (3) patron advances and other liability, which primarily represents funds deposited in advance by patrons for gaming and advance payments by patrons for goods and services such as advance ticket sales, deposits on rooms and convention space and gift card purchases. These liabilities are generally expected to be recognized as revenues within one year and are recorded within other current liabilities.

(in thousands)	June 30, 2022		September 30, 2021
Outstanding gaming chips and slot tickets liability	$	11,908	$	9,632
Loyalty points deferred revenue liability	40,962		42,663
Patron advances and other liability	32,515		30,166
Total	$	85,385	$	82,461

XML

Segment Reporting (Tables)

9 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Financial Information Related to Segments

Accordingly, the Company has four separate reportable segments: (i) Mohegan Sun, which includes the operations of the Connecticut Facilities, (ii) Mohegan Sun Pocono, which includes the operations of the Pennsylvania Facilities, (iii) the MGE Niagara Resorts and (iv) management, development and other. Certain other gaming and entertainment operations (“all other”), which are not individually reportable segments, the Company's corporate functions and inter-segment activities are each disclosed separately in the following segment disclosures to reconcile to consolidated results.

Net Revenues
	Three Months Ended				Nine Months Ended
(in thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Mohegan Sun	$	236,465	$	220,061	$	703,521	$	574,974
Mohegan Sun Pocono	66,783		62,931		193,162		153,392
MGE Niagara Resorts	79,627		14,380		194,719		41,193
Management, development and other	16,817		21,782		46,334		53,691
All other	18,776		8,362		42,231		10,077
Corporate	85		162		471		2,949
Inter-segment	(1,475)		511		(2,921)		1,322
Total	$	417,078	$	328,189	$	1,177,517	$	837,598

Income (Loss) from Operations
	Three Months Ended				Nine Months Ended
(in thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Mohegan Sun	$	58,744	$	65,183	$	165,088	$	144,195
Mohegan Sun Pocono	11,917		12,319		33,641		20,116
MGE Niagara Resorts	14,962		(11,755)		24,566		(35,553)
Management, development and other	8,269		5,711		(16,945)		12,711
All other	6,798		(1,045)		6,540		(499)
Corporate	(10,634)		(6,374)		(30,175)		(21,459)
Inter-segment	70		2		56		(4)
Total	$	90,126	$	64,041	$	182,771	$	119,507
Capital Expenditures Incurred
					Nine Months Ended
(in thousands)					June 30, 2022		June 30, 2021
Mohegan Sun					$	19,253	$	12,680
Mohegan Sun Pocono					6,750		4,182
MGE Niagara Resorts					11,176		9,654
Management, development and other					154,041		6,974
All other					(231)		89,019
Corporate					304		307
Total					$	191,293	$	122,816
Total Assets
(in thousands)					June 30, 2022		September 30, 2021
Mohegan Sun					$	1,231,731	$	1,267,538
Mohegan Sun Pocono					404,607		408,187
MGE Niagara Resorts					503,402		561,812
Management, development and other					849,062		407,831
All other					101,154		98,945
Corporate					1,008,920		996,040
Inter-segment					(1,030,191)		(1,010,476)
Total					$	3,068,685	$	2,729,877

XML

Organization and Basis of Presentation (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Dec. 27, 2021 USD ($)	Jun. 30, 2022 USD ($) facility	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) facility	Jun. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Impairment of intangible assets | $	$ 12,900	$ 0	$ 0	$ 12,869	$ 0
Impairment charges | $	$ 17,700	$ 0	$ 0	$ 17,679	$ 0
United States
Segment Reporting Information [Line Items]
Number of integrated entertainment facilities | facility		2		2
United States and Canada
Segment Reporting Information [Line Items]
Number of integrated entertainment facilities | facility		5		5

XML

Long-Term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Nov. 04, 2021	Sep. 30, 2021
Debt Schedule [Abstract]
Long-term debt, face value	$ 2,478,300
Less: current portion of long-term debt, face value	(44,012)
Long-term debt, net of current portion, face value	2,434,288
Fair value	2,297,568
Long-term debt, book value	2,304,220		$ 1,938,754
Less: current portion of long-term debt, book value	(44,012)		(80,276)
Long-term debt, net of current portion, book value	2,260,208		1,858,478
Unamortized discounts and debt issuance costs	174,080		34,022
Senior Secured Credit Facility | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	0
Long-term debt, book value	0		27,000
Line of Credit | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	0
Long-term debt, book value	$ 0		20,227
2021 8% Senior Secured Notes | Senior Notes
Debt Schedule [Abstract]
Stated interest rate (as a percent)	8.00%
Long-term debt, face value	$ 1,175,000
Long-term debt, book value	1,160,271		1,157,731
2016 7 7/8% Senior Unsecured Notes | Senior Notes
Debt Schedule [Abstract]
Long-term debt, face value	500,000
Long-term debt, book value	$ 495,033		493,599
2016 7 7/8% Senior Unsecured Notes | Other
Debt Schedule [Abstract]
Stated interest rate (as a percent)	7.875%
MGE Niagara Credit Facility - Revolving | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	$ 0
Long-term debt, book value	0		27,534
MGE Niagara Credit Facility - Swingline | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	14,372
Long-term debt, book value	14,372		4,333
MGE Niagara Credit Facility - Term Loan | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	65,926
Long-term debt, book value	65,322		68,965
MGE Niagara Convertible Debenture | Convertible Debenture
Debt Schedule [Abstract]
Long-term debt, face value	31,024
Long-term debt, book value	31,024		31,468
Inspire Korea Credit Facility | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	321,272
Long-term debt, book value	267,961		0
MGE Korea Term Loan
Debt Schedule [Abstract]
Stated interest rate (as a percent)		17.00%
MGE Korea Term Loan | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	298,872
Long-term debt, book value	203,467		0
Mohegan Expo Credit Facility | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	0
Long-term debt, book value	0		25,697
Guaranteed Credit Facility | Line of Credit
Debt Schedule [Abstract]
Long-term debt, face value	25,812
Long-term debt, book value	25,459		27,208
Redemption Note Payable | Redemption Note Payable
Debt Schedule [Abstract]
Long-term debt, face value	44,620
Long-term debt, book value	39,909		53,130
Other | Other
Debt Schedule [Abstract]
Long-term debt, face value	1,402
Long-term debt, book value	$ 1,402		$ 1,862

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Long-Term Debt - Narrative (Details) $ / shares in Units, $ in Thousands, ₩ in Millions				9 Months Ended
	May 31, 2022	Nov. 04, 2021 USD ($) $ / shares shares	Sep. 24, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2021 KRW (₩)	Sep. 24, 2021 KRW (₩) tranche
Short-term Debt [Line Items]
Debt issuance costs incurred				$ 66,911	$ 24,082
Proceeds from line of credit				797,091	$ 697,153
Senior Secured Credit Facility | Line of Credit
Short-term Debt [Line Items]
Transaction costs				700
Senior Secured Credit Facility, Base Rate Loans | Line of Credit | Federal Funds Rate
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Senior Secured Credit Facility, Base Rate Loans | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	0.10%
Senior Secured Credit Facility, Base Rate Loans | Line of Credit | London Interbank Offered Rate (LIBOR), Floor Rate
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	0.75%
Senior Secured Credit Facility, Base Rate Loans | Line of Credit | London Interbank Offered Rate (LIBOR)
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	1.00%
Senior Secured Credit Facility, Base Rate Loans | Line of Credit | Leverage-Based Margin | Minimum
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	1.00%
Senior Secured Credit Facility, Base Rate Loans | Line of Credit | Leverage-Based Margin | Maximum
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	2.75%
Senior Secured Credit Facility, SOFR Loans | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	0.10%
Senior Secured Credit Facility, SOFR Loans | Line of Credit | London Interbank Offered Rate (LIBOR), Floor Rate
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	0.75%
Senior Secured Credit Facility, SOFR Loans | Line of Credit | Leverage-Based Margin | Minimum
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	2.00%
Senior Secured Credit Facility, SOFR Loans | Line of Credit | Leverage-Based Margin | Maximum
Short-term Debt [Line Items]
Basis spread on variable rate (as a percent)	3.75%
Inspire Korea Credit Facility
Short-term Debt [Line Items]
Borrowing capacity						$ 878,500	₩ 1,040,000.0	₩ 1,040,000.0
Number of tranches | tranche								2
Debt instrument, term			48 months
Period after first draw for prepayment			1 year
Undrawn commitment fee (as a percent)			0.30%
Credit enhancement support (up to)			$ 100,000
Debt issuance costs incurred				59,100
Inspire Korea Credit Facility | Tranche A Facility
Short-term Debt [Line Items]
Borrowing capacity						625,100	740,000.0	₩ 740,000.0
Stated interest rate (as a percent)								5.40%
Inspire Korea Credit Facility | Tranche B Facility
Short-term Debt [Line Items]
Borrowing capacity						$ 253,400	₩ 300,000.0	₩ 300,000.0
Stated interest rate (as a percent)								7.00%
Loan interest reserve period (in months)			36 months
MGE Korea Term Loan
Short-term Debt [Line Items]
Debt instrument, term		66 months
Stated interest rate (as a percent)		17.00%
Debt issuance costs incurred				10,000
Proceeds from line of credit		$ 275,000
Fixed charge percentage from share capital and debenture (as a percent)		100.00%
Debt discount		$ 84,800
MGE Korea Warrants And Put Option Liability
Short-term Debt [Line Items]
Debt issuance costs incurred				$ 4,200
Number of warrants (in shares) | shares		4,400
Initial warrant exercise price (in dollars per share) | $ / shares		$ 0.01
Warrants, fully-diluted share capital (as a percent)		22.00%
Aggregate purchase price		$ 110,000
MGE Korea Warrants And Put Option Liability | Warrants And Put Option | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow
Short-term Debt [Line Items]
Warrants, unobservable inputs (as a percent)				0.115
MGE Korea Warrants And Put Option Liability | Warrants And Put Option | Measurement Input, Price Volatility | Valuation Technique, Discounted Cash Flow
Short-term Debt [Line Items]
Warrants, unobservable inputs (as a percent)				0.550
MGE Korea Warrants And Put Option Liability | Put Option
Short-term Debt [Line Items]
Warrants exercisable period (in months)		6 years
MGE Korea Warrants And Put Option Liability | Call Option
Short-term Debt [Line Items]
Warrants exercisable period (in months)		6 months

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Long-Term Debt - Inspire Integrated Resort Credit Facility Summary (Details) - Inspire Korea Credit Facility ₩ in Millions, $ in Millions	Jun. 30, 2022 KRW (₩)	Jun. 30, 2022 USD ($)	Sep. 30, 2021 KRW (₩)	Sep. 30, 2021 USD ($)	Sep. 24, 2021 KRW (₩)
Line of Credit Facility [Line Items]
Total Capacity			₩ 1,040,000.0	$ 878.5	₩ 1,040,000.0
Outstanding Borrowings (Face Value)	₩ 416,000.0	$ 321.3
Tranche A Facility
Line of Credit Facility [Line Items]
Total Capacity			740,000.0	625.1	740,000.0
Outstanding Borrowings (Face Value)	296,000.0	228.6
Tranche B Facility
Line of Credit Facility [Line Items]
Total Capacity			₩ 300,000.0	$ 253.4	₩ 300,000.0
Outstanding Borrowings (Face Value)	₩ 120,000.0	$ 92.7

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Long-Term Debt - Warrants and Put Option (Details) - Warrants And Put Option - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 90,932	$ 0
Additions	0	84,771
Unrealized gain	(26,796)	(20,635)
Ending balance	$ 64,136	$ 64,136

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Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Net revenues	$ 417,078	$ 328,189	$ 1,177,517	$ 837,598
Connecticut
Disaggregation of Revenue [Line Items]
Net revenues	236,465	220,061	703,521	574,974
Pennsylvania
Disaggregation of Revenue [Line Items]
Net revenues	66,783	62,931	193,162	153,392
Canada
Disaggregation of Revenue [Line Items]
Net revenues	79,627	14,380	194,719	41,193
Other
Disaggregation of Revenue [Line Items]
Net revenues	34,203	30,306	86,115	66,717
Gaming
Disaggregation of Revenue [Line Items]
Net revenues	293,973	241,289	841,196	623,674
Gaming | Connecticut
Disaggregation of Revenue [Line Items]
Net revenues	157,933	163,938	479,297	434,928
Gaming | Pennsylvania
Disaggregation of Revenue [Line Items]
Net revenues	59,291	57,134	172,570	141,795
Gaming | Canada
Disaggregation of Revenue [Line Items]
Net revenues	59,244	13,283	151,254	38,502
Gaming | Other
Disaggregation of Revenue [Line Items]
Net revenues	17,505	6,934	38,075	8,449
Food and beverage
Disaggregation of Revenue [Line Items]
Net revenues	35,622	20,826	96,157	45,209
Food and beverage | Connecticut
Disaggregation of Revenue [Line Items]
Net revenues	23,120	16,770	66,774	39,022
Food and beverage | Pennsylvania
Disaggregation of Revenue [Line Items]
Net revenues	4,251	2,940	11,265	4,913
Food and beverage | Canada
Disaggregation of Revenue [Line Items]
Net revenues	7,235	0	14,957	0
Food and beverage | Other
Disaggregation of Revenue [Line Items]
Net revenues	1,016	1,116	3,161	1,274
Hotel
Disaggregation of Revenue [Line Items]
Net revenues	30,256	22,188	84,989	55,882
Hotel | Connecticut
Disaggregation of Revenue [Line Items]
Net revenues	24,025	20,758	69,469	52,566
Hotel | Pennsylvania
Disaggregation of Revenue [Line Items]
Net revenues	1,631	1,430	4,561	3,327
Hotel | Canada
Disaggregation of Revenue [Line Items]
Net revenues	4,601	0	10,963	0
Hotel | Other
Disaggregation of Revenue [Line Items]
Net revenues	(1)	0	(4)	(11)
Retail, entertainment and other
Disaggregation of Revenue [Line Items]
Net revenues	57,227	43,886	155,175	112,833
Retail, entertainment and other | Connecticut
Disaggregation of Revenue [Line Items]
Net revenues	31,387	18,595	87,981	48,458
Retail, entertainment and other | Pennsylvania
Disaggregation of Revenue [Line Items]
Net revenues	1,610	1,427	4,766	3,357
Retail, entertainment and other | Canada
Disaggregation of Revenue [Line Items]
Net revenues	8,547	1,097	17,545	2,691
Retail, entertainment and other | Other
Disaggregation of Revenue [Line Items]
Net revenues	$ 15,683	$ 22,256	$ 44,883	$ 57,005

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Revenue Recognition - Lease Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Hotel
Lessor, Lease, Description [Line Items]
Fixed rent	$ 16,918	$ 14,635	$ 48,932	$ 36,137
Variable rent	0	0	0	0
Total	16,918	14,635	48,932	36,137
Retail, entertainment and other
Lessor, Lease, Description [Line Items]
Fixed rent	1,670	742	5,113	3,626
Variable rent	3,169	1,634	7,843	3,079
Total	$ 4,839	$ 2,376	$ 12,956	$ 6,705

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Revenue Recognition - Narrative (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2022 USD ($) type	Sep. 30, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Contract assets	$ 101,600	$ 119,900
Number of types of liabilities | type	3
Contract related liabilities	$ 85,385	82,461
Mohegan Sun Pocono
Disaggregation of Revenue [Line Items]
Contract related liabilities	$ 14,700	$ 15,800

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Revenue Recognition - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 72,149	$ 60,139
Allowance for doubtful accounts	(22,278)	(19,367)
Accounts receivable, net	49,871	40,772
Gaming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	38,051	37,921
Food and beverage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	22	13
Hotel
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	4,682	3,106
Retail, entertainment and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 29,394	$ 19,099

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Revenue Recognition - Contract and Contract-Related Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Revenue from External Customer [Line Items]
Contract related liabilities	$ 85,385	$ 82,461
Outstanding gaming chips and slot tickets liability
Revenue from External Customer [Line Items]
Contract related liabilities	11,908	9,632
Loyalty points deferred revenue liability
Revenue from External Customer [Line Items]
Contract related liabilities	40,962	42,663
Patron advances and other liability
Revenue from External Customer [Line Items]
Contract related liabilities	$ 32,515	$ 30,166

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Segment Reporting (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			4
Net Revenues
Net revenues	$ 417,078	$ 328,189	$ 1,177,517	$ 837,598
Income (Loss) from Operations
Income (loss) from operations	90,126	64,041	182,771	119,507
Capital Expenditures Incurred
Capital expenditures incurred			191,293	122,816
Total Assets
Total assets	3,068,685		3,068,685		$ 2,729,877
Operating segments | Mohegan Sun
Net Revenues
Net revenues	236,465	220,061	703,521	574,974
Income (Loss) from Operations
Income (loss) from operations	58,744	65,183	165,088	144,195
Capital Expenditures Incurred
Capital expenditures incurred			19,253	12,680
Total Assets
Total assets	1,231,731		1,231,731		1,267,538
Operating segments | Mohegan Sun Pocono
Net Revenues
Net revenues	66,783	62,931	193,162	153,392
Income (Loss) from Operations
Income (loss) from operations	11,917	12,319	33,641	20,116
Capital Expenditures Incurred
Capital expenditures incurred			6,750	4,182
Total Assets
Total assets	404,607		404,607		408,187
Operating segments | MGE Niagara Resorts
Net Revenues
Net revenues	79,627	14,380	194,719	41,193
Income (Loss) from Operations
Income (loss) from operations	14,962	(11,755)	24,566	(35,553)
Capital Expenditures Incurred
Capital expenditures incurred			11,176	9,654
Total Assets
Total assets	503,402		503,402		561,812
Operating segments | Management, development and other
Net Revenues
Net revenues	16,817	21,782	46,334	53,691
Income (Loss) from Operations
Income (loss) from operations	8,269	5,711	(16,945)	12,711
Capital Expenditures Incurred
Capital expenditures incurred			154,041	6,974
Total Assets
Total assets	849,062		849,062		407,831
Operating segments | All other
Net Revenues
Net revenues	18,776	8,362	42,231	10,077
Income (Loss) from Operations
Income (loss) from operations	6,798	(1,045)	6,540	(499)
Capital Expenditures Incurred
Capital expenditures incurred			(231)	89,019
Total Assets
Total assets	101,154		101,154		98,945
Corporate
Net Revenues
Net revenues	85	162	471	2,949
Income (Loss) from Operations
Income (loss) from operations	(10,634)	(6,374)	(30,175)	(21,459)
Capital Expenditures Incurred
Capital expenditures incurred			304	307
Total Assets
Total assets	1,008,920		1,008,920		996,040
Inter-segment
Net Revenues
Net revenues	(1,475)	511	(2,921)	1,322
Income (Loss) from Operations
Income (loss) from operations	70	$ 2	56	$ (4)
Total Assets
Total assets	$ (1,030,191)		$ (1,030,191)		$ (1,010,476)