Exhibit 99.1

MOHEGAN TRIBAL GAMING AUTHORITY ANNOUNCES

FIRST QUARTER FISCAL 2011 OPERATING RESULTS

Uncasville, Connecticut, January 27, 2011 – The Mohegan Tribal Gaming Authority, or the Authority, announced today its operating results for the first fiscal quarter ended December 31, 2010. The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, and the owner and operator of a gaming and entertainment complex located in Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility located in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs.

Consolidated operating results for the first quarter ended December 31, 2010:

The growth in consolidated Adjusted EBITDA for the quarter ended December 31, 2010 was primarily attributable to higher Adjusted EBITDA at Mohegan Sun at Pocono Downs reflecting the addition of table game and poker revenues from the July 2010 opening of table game and poker operations. Consolidated Adjusted EBITDA for the quarter ended December 31, 2010 also reflects increased Adjusted EBITDA at Mohegan Sun resulting from lower operating costs and expenses reflecting, in part, staffing reductions and other cost containment initiatives implemented in September 2010. Adjusted EBITDA at Mohegan Sun was negatively impacted by lower gaming and non-gaming revenues due to the continued weakness in consumer spending, aggressive promotional programs by competitors and reduced shows held at the Mohegan Sun Arena.

“We are pleased with our results for the quarter,” said, Mitchell Grossinger Etess, Chief Executive Officer of the Authority. “Despite lower revenues at Mohegan Sun, our employees and management teams did an excellent job in managing costs. These efforts combined with the addition of table games at Mohegan Sun at Pocono Downs contributed to the increases in Adjusted EBITDA and margins at our Connecticut and Pennsylvania properties. I would like to personally thank each and every one of our employees for their continued hard work and dedication to our company.”

Mohegan Sun

Operating results (in thousands, unaudited):

The increase in Adjusted EBITDA was due to lower operating costs and expenses, including payroll costs and casino marketing and promotional expenditures, reflecting, in part, staffing reductions and other cost containment initiatives implemented in September 2010. These results were partially offset by lower gaming and non-gaming revenues resulting from the continued weakness in consumer spending due to high unemployment in the Northeast region. Gaming and non-gaming revenues also were negatively impacted by aggressive promotional programs by competitors, including increased

use of free promotional slot plays. During the quarter ended December 31, 2010, free promotional slot plays redeemed in the Connecticut slot gaming market increased 34.1% compared to the first quarter of fiscal 2010, while free promotional slot plays redeemed at Mohegan Sun increased 8.8%. Additionally, gaming and non-gaming revenues were negatively impacted by reduced shows held at the Mohegan Sun Arena, which resulted in decreased patron visitation to the facility. The decline in shows held at the Mohegan Sun Arena reflects a reduction in available entertainment acts on tour. Despite the decline in revenues, Adjusted EBITDA margin increased by 200 basis points to 23.1% for the quarter ended December 31, 2010 from 21.1% in the first quarter of fiscal 2010.

The increase in income from operations reflects the growth in Adjusted EBITDA combined with lower depreciation expense.

Selected gaming data (in thousands, except where noted, unaudited):

Information related to slot revenues within Mohegan Sun’s market area (in thousands, except where noted, unaudited):

The decline in slot revenues at Mohegan Sun primarily resulted from the continued weakness in consumer spending and aggressive promotional programs by competitors. The reduction in slot revenues at Mohegan Sun also reflects the overall decline in the Connecticut slot gaming market. It is believed that aggressive promotional programs by competitors in the states of Rhode Island and New York may have contributed to the decreases in Mohegan Sun’s slot win market share and efficiency in the Northeast slot gaming market. The decline in Mohegan Sun’s slot win efficiency in the Connecticut slot gaming market was primarily the result of a reduction in Foxwoods Resort Casino’s weighted average number of slot machines during the quarter.

The decrease in table games revenues resulted from lower table games drop combined with lower table games hold percentage compared to the first quarter of fiscal 2010.

Non-gaming data (in thousands, except where noted, unaudited):

The decline in food and beverage revenues was primarily attributable to a $3.1 million decrease in food revenues resulting from the reduction in the number of meals served at Mohegan Sun-owned food and beverage outlets. The reduction in the number of meals served reflects the closure of the Sunburst Buffet and the replacement of certain other Mohegan Sun-owned food and beverage outlets with third-party operators. Food and beverage revenues also were negatively impacted by a decrease in the number of shows held at the Mohegan Sun Arena and the resulting decline in patron visitation to the facility compared to the first quarter of fiscal 2010.

The decrease in hotel revenues primarily resulted from the continued emphasis on maintaining high occupancy of the hotel by gaming patrons. The decline in hotel revenues also reflects lower room rates offered to gaming patrons in response to competitive promotional offers from competitors in the Connecticut and Atlantic City markets.

The decline in retail, entertainment and other revenues was primarily due to a $4.6 million decrease in entertainment revenues. The decrease in entertainment revenues resulted from declines in the number of Arena tickets and the average price per Arena ticket due to reduced shows held at the Mohegan Sun Arena, including fewer headliner shows, reflecting a reduction in available entertainment acts on tour.

Mohegan Sun at Pocono Downs

Operating results (in thousands, unaudited):

The increases in Adjusted EBITDA and income from operations were primarily attributable to the addition of table game and poker revenues from the July 2010 opening of table game and poker operations. Higher slot and non-gaming revenues also contributed to the increases in Adjusted EBITDA and income from operations. These results were partially offset by increased operating costs and expenses resulting from the addition of table game and poker operations. Adjusted EBITDA margin increased by 270 basis points to 16.2% for the quarter ended December 31, 2010 from 13.5% in the first quarter of fiscal 2010.

Selected gaming data (in thousands, except where noted, unaudited):

Information related to slot revenues within Mohegan Sun at Pocono Downs’ market area (in thousands, except where noted, unaudited):

Slot revenues at Mohegan Sun at Pocono Downs were positively impacted by the addition of table game and poker operations, which resulted in increased patron visitation to the facility.

Non-gaming revenues (in thousands, except where noted, unaudited):

The growth in food and beverage and retail, entertainment and other revenues were primarily attributable to increased patron visitation to the facility resulting from the addition of table game and poker operations.

Corporate

Total Corporate expenses (in thousands, unaudited):

The increase in total Corporate expenses primarily resulted from higher professional and consulting expenditures.

Mohegan Tribal Gaming Authority Property Information

Liquidity and Capital Spending

Liquidity

As of December 31, 2010, the Authority held cash and cash equivalents of $92.2 million compared to $63.9 million as of September 30, 2010. As of December 31, 2010, $543.0 million was drawn on the Authority’s $675.0 million bank credit facility. As of December 31, 2010, amounts under letters of credit issued under the bank credit facility totaled $3.3 million, of which no amount was drawn. Inclusive of letters of credit, which reduce borrowing availability under the bank credit facility, and after taking into account restrictive financial covenants under the bank credit facility and the Authority’s line of credit and note indentures, the Authority had approximately $35.6 million of borrowing capacity under the bank credit facility as of December 31, 2010. The Authority’s total debt, including capital leases, was approximately $1.66 billion as of December 31, 2010 compared to $1.64 billion as of September 30, 2010.

Interest Expense

Interest expense increased by $1.2 million, or 4.2%, to $29.7 million for the quarter ended December 31, 2010 compared to $28.5 million in the first quarter of fiscal 2010. The increase in interest expense was primarily due to higher interest rate and weighted average outstanding debt. The weighted average interest rate was 7.1% for the quarter ended December 31, 2010 compared to 6.8% in the first quarter of fiscal 2010. The increase in weighted average interest rate was primarily driven by the October 2009 issuance of the Authority’s 11 ¹/2% second lien senior secured notes, which repaid a lower interest term loan under the bank credit facility. The weighted average outstanding debt was $1.68 billion for the quarter ended December 31, 2010 compared to $1.67 billion in the first quarter of fiscal 2010. The increase in weighted average outstanding debt was primarily due to additional borrowings on the bank credit facility to fund capital expenditures and to pay a table games authorization fee to the Commonwealth of Pennsylvania in connection with the July 2010 opening of table game and poker operations at Mohegan Sun at Pocono Downs.

Cost Containment Initiatives

In September 2010, the Authority implemented cost containment initiatives in an effort to better align operating costs with market and business conditions, including the reduction of its workforce in Uncasville, Connecticut by approximately 475 positions. In addition, the Authority implemented a number of other cost containment initiatives, including certain modifications to employee medical benefits, consolidation of certain Mohegan Sun-owned food and beverage outlets and replacement of certain other Mohegan Sun-owned food and beverage outlets with third-party operators. The Authority estimates that these cost containment initiatives yielded consolidated labor and operating cost savings totaling approximately $8.3 million for the quarter ended December 31, 2010. Consolidated labor and operating cost savings for fiscal 2011 are forecast to approximate $30.0 million.

Capital Spending

The following table presents data related to capital expenditures for the three months ended December 31, 2010 and fiscal 2011:

Distributions to the Tribe

Distributions to the Tribe totaled $4.5 million for the quarter ended December 31, 2010 compared to $27.3 million in the first quarter of fiscal 2010.

Financing Update

In November 2010, the Authority engaged Blackstone Advisory Partners, L.P. to assist in its strategic planning relating to its debt maturities. Additionally, in January 2011, the Authority engaged Credit Suisse to assist in the evaluation and implementation of refinancing alternatives.

Conference Call

The Authority will host a conference call and simultaneous webcast regarding its first quarter fiscal 2011 operating results on Thursday, January 27, 2011 at 10:00 a.m. (Eastern Standard Time).

Those interested in participating in the call should dial as follows:

(877) 756-4274

(706) 643-0107 (International)

Conference ID: 39561111

Please call five minutes in advance to ensure that you are connected prior to the initiation of the call. Questions and answers will be reserved for call-in analysts and investors.

Parties who want to listen to the live conference call on the Internet may do so through a web link on the Authority’s website at www.mtga.com, under the “Investor Relations/Financial News” section. Interested parties also may listen to a taped replay of the entire conference call commencing two hours after the call’s completion on Thursday, January 27, 2011. This replay will run through February 10, 2011.

The access number for a taped replay of the conference call is as follows:

(800) 642-1687

(706) 645-9291 (International)

Conference ID: 39561111

A transcript will be available on the Authority’s website for a period of 90 days following the conference call.

About the Authority

The Authority is an instrumentality of the Tribe, a federally-recognized Indian tribe with an approximately 507-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on a 185-acre site on the Tribe’s reservation. Through its subsidiary, Downs Racing, the Authority also owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility located on a 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe’s gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the approximately 1,200-room luxury Sky Hotel Tower. Mohegan Sun at Pocono Downs operates in an approximately 400,000-square-foot facility, including 82,000 square feet of gaming space offering approximately 2,500 slot machines, 66 table games and an 18-table poker room, several dining and retail options and a bus passenger lounge. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com, www.mohegansunpocono.com or www.mtga.com.

Special Note Regarding Forward-Looking Statements

Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect” or “intend” and similar expressions. Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority. Information concerning potential factors that could affect the Authority’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2010, as well as in the Authority’s other reports and filings with the Securities and Exchange Commission. Any forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF INCOME

(in thousands)

(unaudited)

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)

MOHEGAN SUN

SUPPLEMENTAL DATA - OPERATING STATISTICS

(unaudited)

MOHEGAN SUN AT POCONO DOWNS

SUPPLEMENTAL DATA - OPERATING STATISTICS

(unaudited)

MOHEGAN TRIBAL GAMING AUTHORITY

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)

Reconciliations of Adjusted EBITDA to Net Income:

Reconciliations of Adjusted EBITDA to net income, a financial measure determined in accordance with accounting principles generally accepted in the United States of America, or GAAP, are shown below (in thousands):

Reconciliations of Income (Loss) from Operations to Adjusted EBITDA (unaudited):

Reconciliations of income (loss) from operations, a financial measure determined in accordance with GAAP, to Adjusted EBITDA, are shown below (in thousands):