Mohegan Tribe Built a $1.6B Korean Casino, Then Lost It
The Mohegan Tribe lost control of its $1.6 billion South Korean casino to Bain Capital following a loan covenant breach.Summary
The Mohegan Tribe, a successful US-based tribal casino operator, failed to maintain control of its massive $1.6 billion Inspire Entertainment Resort near Seoul. Despite being the first Native American tribe to operate a casino in Asia, the project faced significant hurdles, including construction delays and rising costs that pushed the opening from 2022 to February 2024.
Due to an earnings shortfall that led to a breach of loan covenants, Bain Capital was able to call its $275 million loan early. This allows Bain Capital to take control of the resort in 2025, leaving the Mohegan Tribe with no equity and no financial benefit from the property's performance. While the resort initially suffered losses exceeding $100 million in its first year, it has recently begun to turn a pretax profit under the new management structure.
(Source：Newser)