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Foxwoods lets 700 go, including CEO

The tribe that runs the Foxwoods Resort Casino in Ledyard, Conn., said today that the casino's chief executive officer was among 700 people losing their jobs because of cost-cutting.

The Mashantucket Pequot Tribal Nation is also trying to build a $670 million casino in Philadelphia.

Patricia Irvin's final day as CEO of Foxwoods Casino in Connecticut was Friday. Irvin, a former Wall Street lawyer and Pentagon official, was hired less than a year ago.

The tribe said in a statement that about 700 workers - 6 percent of the casino's workforce - would be laid off by Oct. 17 as part of a plan to cut costs in the lackluster economy. The casino will operate on an interim basis without a CEO, spokeswoman Lori Potter said.

"The need for the cuts is directly related to the national economy and its effect on gaming," said Potter. "People are gambling less, and we are feeling the effects of this."

The Foxwoods Connecticut casino draws heavily from the New England states, particularly Massachusetts, Connecticut and New York.

Foxwoods' biggest in-state competitor, Mohegan Sun Casino, also reported a revenue decline year-to-date this year.

"A sluggish economy is beginning to impact gaming in most jurisdictions, including Connecticut, in response to negative revenues," said Andrew Zarnett, a gambling analyst with Deutsche Bank AG in New York. "Operators are reducing expenses, including labor."

Foxwoods reported a 4.5 percent decrease in year-to-date revenue from January to August to $515 million vs. $539.5 million in the same period a year earlier.

Zarnett wrote in a recent analysis that Foxwoods' revenue was disappointing since the casino added 1,400 slot machines and, in May, opened a $700 million, 825-room hotel in partnership with MGM Mirage.

James L. Dougherty, president and chief operating officer of Foxwoods Casino Philadelphia, said today that the company's struggling performance in Connecticut had nothing to do with the tribe's recent decision to move its Philadelphia casino from its original planned location on the Delaware riverfront to the Gallery.

Last month, Gov. Rendell, Mayor Nutter and Foxwoods announced that Foxwoods was considering a move to the Gallery on Market East near Chinatown. Strong neighborhood opposition, as well as political and legal challenges, stalled construction on the proposed $670 million casino on Columbus Boulevard between Tasker and Reed Streets in South Philadelphia.

"After nearly two years of delays, Foxwoods Casino Philadelphia's decision to evaluate the East Market Street location was driven purely by the desire to move the project forward," Dougherty said in an e-mailed response. "Our project is unaffected by the recent business decisions announced in Connecticut."

Potter said Irvin's duties were being absorbed by the president of Foxwoods Casino and the general manager of MGM Grand at Foxwoods, and that the move was a "short-term reaction for now and we are working on our long-term goals."


Contact staff writer Suzette Parmley at 215-854-2594 or sparmley@phillynews.com.

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