Published on: December 15, 2025, 01:12h.
Updated on: December 15, 2025, 01:12h.
- Mohegan defaulted on its South Korea casino venture in late 2024
- Bain Capital subsequently gained control of the Incheon casino resort
- Mohegan divested all interests in the $1.6 billion property
In its comprehensive report for fiscal year 2025, Mohegan outlines the sequence of events that resulted in the loss of control over the $1.6 billion Inspire Entertainment Resort located at Incheon International Airport, South Korea.
As reported by Casino.org, Mohegan defaulted on its Korea Term Loan toward the end of the previous year. This loan of $275 million was provided by Bain Capital and Serica Agency Limited. Bain is an established private investment firm based in Boston, while Serica operates as a loan agency specializing in the Asia-Pacific region from Hong Kong.
On February 13, 2025, Bain Capital informed Mohegan of their decision to assume ownership of Inspire, which has 150 table games, 373 slot machines, 1,275 hotel rooms, 11 restaurants, five lounges, a shopping mall, an indoor water park, an immersive indoor street experience, and a 15,000-seat arena.
“Prior to the transition in Korea, we had no active intentions of marketing Inspire for sale or abandoning it,” the company stated in its year-end assessment.
The acquisition resulted in Mohegan losing its equity stake in Inspire, meaning the company “no longer reaps financial benefits from Inspire’s performance.”
Financial Setback
Mohegan’s investment in South Korea proved to be a costly misstep. The Connecticut-based company had high hopes that their $1.6 billion investment in the casino, situated near the Seoul capital, would be profitable.
However, because the casino was only accessible to foreign visitors, the anticipated revenue never materialized. Additionally, the family-friendly amenities failed to attract vacationing families, particularly given its proximity to an airport.
Inspire significantly impacted Mohegan’s financial results, as operating income fell by 9.5% to $259.3 million for the year ending September 30, 2025, resulting in total capital plummeting from nearly $3.5 billion to $2 billion.
The fallout from the Inspire ordeal led to the announcement of CEO Ray Pineault’s resignation, set for December 28.
During the 2025 investor conference call, Pineault maintained a positive outlook, highlighting robust business activity at Mohegan Sun and its online operations.
“The fiscal year we just concluded represents one of the most prosperous and transformative eras in Mohegan’s history,” Pineault remarked. “Our Connecticut operations are performing exceptionally well. Combined EBITDA for Mohegan Sun and Mohegan Digital surpassed $363 million, marking the highest performance since 2007. This achievement underscores our strategic strength, brand value, and team capability.”
Mohegan CFO Ari Glazer mentioned staff reductions implemented in the latest quarter, although no positions at Mohegan Sun were affected. Glazer emphasized that these “workforce reductions will streamline our cost structure moving forward.”
NBA Franchise Transaction
The company’s financial standing was bolstered by the sale of its WNBA franchise, the Connecticut Sun. In August, Mohegan finalized an agreement to sell the women’s basketball team to Stephen Pagliuca, who co-chairs Bain Capital, for $325 million.
The Connecticut Sun is expected to continue playing at the Mohegan Sun Arena until the end of the 2026 season before potentially relocating to Boston.