EMPLOYMENT AGREEMENT

Exhibit 10.4

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”) made as of this 2 ^nd day of April, 2009, and shall be effective January 1, 2009 (the “Effective Date”), by and between the DOWNS RACING L.P., a Pennsylvania limited partnership (the “Employer”), acting through Mohegan Commercial Ventures PA, LLC, its General Partner, a Pennsylvania limited liability company (“General Partner”) whose sole member is the Mohegan Tribal Gaming Authority (the “Authority”), having an address c/o the Mohegan Tribal Gaming Authority, One Mohegan Sun Boulevard, Uncasville, Connecticut 06382, and ROBERT SOPER ., residing at 203 Greystone Drive, Shavertown, Pennsylvania 18708 (“Executive”).

WITNESSETH:

WHEREAS, the Employer owns and operates, among other things, a harness racetrack and casino located in Wilkes-Barre, Pennsylvania known as Mohegan Sun at Pocono Downs, along with several off-track wagering facilities located in the State of Pennsylvania (as presently existing and hereafter developed, the “Business”); and

WHEREAS the Employer is desirous of retaining Executive as its President and General Manager for the Business and assuring that Executive has the authority to fully carry out his duties hereunder by being responsible to the Employer, acting through its General Partner.

NOW, THEREFORE, in consideration of the promises and the mutual covenants, terms and conditions hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency whereof is specifically acknowledged, the parties hereto hereby agree as follows:

Executive and Employer mutually agree that effective with the date first written on this Agreement, all prior agreements, written or oral, shall be terminated and neither party thereto shall have any further obligations to the other thereunder.

(A) The Employer hereby agrees to continue to employ Executive as its President and General Manager upon the terms set forth herein, and Executive hereby accepts such continued employment.

(B) Executive shall perform such duties and services of an executive, managerial and administrative nature as are customary for a President and General Manager and which, consistent with the foregoing, the Employer may from time to time through communication from the Chief Executive Officer or the Chief Operating Officer of the Authority, acting on behalf of

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the General Partner of the Employer, hereafter assign to him. Such duties shall include, but not be limited to, (i) in coordination with the Chief Executive Officer and Chief Operating Officer of the Authority, acting on behalf of the General Partner of the Authority, oversee the financial reporting and treasury activities of the Employer, the strategic direction of the Employer’s business development, and the financial performance of the Business, (ii) in coordination with and with the direction of the Chief Executive Officer and the Chief Operating Officer of the Authority, acting as aforesaid, oversee the operations of the Business; and (iii) attend professional training and continuing professional education events as approved by the Chief Executive Officer or the Chief Operating Officer of the Authority, acting as aforesaid. Executive shall report exclusively to the Chief Executive Officer and the Chief Operating Officer of the Authority, acting on behalf of the General Partner of the Employer. The Employer shall not restrict, reduce or otherwise limit Executive’s responsibility or authority without his consent; provided, however, that the Executive shall comply with the General Manager’s Handbook as hereafter adopted by the Authority. Executive shall comply with Employer’s policies, including, without limitation, the standards of personal conduct set forth in Mohegan Sun at Pocono Downs Policy #27, as amended from time to time.

(C) Executive shall devote his best efforts and ability and all required business time to the performance of his duties and responsibilities hereunder to achieve the goals set forth in the Employer’s annual business plan. Executive shall perform all of his duties to the Employer faithfully, competently, and diligently.

(D) Except for actions of the Executive that could be the basis for termination for Cause as set forth in Paragraph 9(C), below, the Employer shall indemnify, defend, and hold Executive harmless, including the payment of reasonable attorney fees, if the Employer does not directly provide Executive’s defense, from and against all claims made by anyone, including, but not limited to, a corporate entity, company, other employee, agent, patron, tribal member, or any member of the general public with respect to any claim that asserts as a basis, any acts, omissions, or other circumstances involving the performance of Executive.

This Agreement shall be effective from the date set forth in the opening paragraph of this Agreement (the “Effective Date”).

This Agreement shall govern Executive’s employment with the Employer from the Effective Date through and including June 30, 2011. This Agreement, including this paragraph, shall automatically renew for an additional term of three (3) years unless either party shall notify the other of its intention to terminate, or unless otherwise terminated as provided herein. Any such notice of intention to terminate shall be delivered not later than one hundred and eighty (180) days prior to the end of the then current term and shall be effective at the end of such term, except as otherwise provided herein.

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Commencing with the Effective Date and until January 31, 2010, the Employer shall pay Executive a Base Annual Salary in the amount of $385,679.26 in equal weekly installments. Commencing January 1, 2010, and on each January 1 thereafter during the term of this Agreement, the Base Annual Salary shall be increased in an amount mutually agreed to by Executive and the Employer, which amount shall in no event be less than 13% of the then current Base Annual Salary for the year commencing January 1, 2010 and 5% of the then current Base Annual Salary each year thereafter.

The Employer may determine an annual bonus payable to Executive, the amount of which shall be based upon the business plan and financial goals of the Employer as established at the beginning of each fiscal year. The annual bonus, if any, for the previous fiscal year shall be paid no later than November 30 of each year during the term.

The Employer may, within its discretion, at any time during the term of this Agreement apply for and procure as owner and for its own benefit insurance on the life of Executive, in such amounts and in such form as the Employer may choose. Executive shall have no interest whatsoever in any such policies, but he shall upon request by the Employer submit to such medical examinations, supply such information, and execute such documents as may be required by the Employer or the insurance companies to whom the Employer has made application.

(A) The Employer will reimburse Executive for necessary and reasonable business expenses incurred by him in the performance of his duties hereunder, provided, that he shall obtain the approval for such expenditures in accordance with the procedures adopted by the Employer from time to time and generally-applicable to its executive-level employees, including such procedures with respect to submission of appropriate documentation and receipts. Failure by Executive to follow such procedures shall entitle the Employer to refuse to reimburse Executive for such expenses until such time as such failure has been cured. It is understood and agreed that Employer shall not be responsible for any expense of Executive for leasing or operation of a vehicle for Executive (except that Executive shall be entitled to reimbursement for the expenses, including mileage, actually incurred in connection with his use of his automobile for the business-related purposes of the Employer), nor for any expense of Executive for legal expenses or tax planning expenses incurred by Executive in interpreting this or any other agreement between Executive and Employer.

(B) Executive shall be entitled to four (4) weeks paid vacation per full year of employment.

(C) Executive shall participate in such employee benefit plans and programs (including but not limited to medical and life insurance programs) as are now or may hereafter be adopted

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by the Employer for its executive employees and their families. The life insurance program shall provide term life insurance coverage on Executive’s life for the benefit of Executive’s designated beneficiary in an amount not less than Executive’s Base Annual Salary. Employer shall continue to provide such medical insurance coverage for a period of one (1) year after any termination by Employer of Executive’s employment hereunder if such termination was without Cause, as hereinafter defined.

(A) If Executive shall become unable to perform all of his duties set forth in Paragraph 1 of this Agreement due to mental or physical disability, all compensation and benefits provided in this Agreement shall continue to be paid and provided in full for a period not exceeding one hundred and eighty (180) consecutive days. Upon completion of such one hundred and eighty (180) days (or if Executive shall be disabled by the same incapacity for an aggregate period of one hundred and eighty (180) days in any period of three hundred and sixty (360) consecutive days by the same incapacity) the Employer may, at its sole option, suspend Executive’s employment until Executive is recovered (as reasonably certified by a physician designated by the Employer) from such mental or physical disability. During any period of suspension on account of disability, Executive shall receive only such compensation as may be provided under the disability insurance described in Paragraph 9(B). If the physician designated by the Employer certifies that Executive is permanently disabled, Employer’s obligations under this Agreement shall cease; provided, however, Executive shall be entitled to the disability benefits set forth in Paragraph 9(B), below.

(B) Employer, at the sole expense of Employer, shall provide disability insurance coverage for Executive. Such policy shall provide payment of 50% of Executive’s Base Annual Salary commencing with suspension or termination of employment, pursuant to Paragraph 9(A), above, by reason of physical or mental disability, and for a period of two (2) years if such disability was the result of injury, and to age 65 if such disability was the result of physical or mental illness. In the event the Employer is unable to obtain disability insurance in the amount required, or is unable to obtain all or part of such insurance at standard rates, the Employer shall at its option obtain part or all of such insurance at non-standard rates or shall self-insure in whole or in part for the time periods set forth in this paragraph.

(C) Subject to the provisions of this paragraph, the Employer may terminate Executive’s employment for Cause, defined as (i) Executive’s violation of the restriction contained in Paragraph 10 of this Agreement, (ii) the loss or suspension by the Commonwealth of Pennsylvania of Executive’s key qualifier license and/or other required license for casino gaming, (iii) Executive’s conviction of any crime involving fraud, theft or moral turpitude, or (iv) Executive’s intentional or material breach of his obligations under this Agreement. Employer may suspend Executive without pay upon Executive’s arrest for any alleged crime against the Employer, the General Partner or any of their affiliates. In the event that Executive is found not guilty or otherwise exonerated for an alleged crime against Employer, the General Partner or any of their affiliates, Executive’s suspended pay shall be reimbursed to him.

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Except in the event of suspension upon Executive’s arrest or termination upon conviction of a crime, if Employer desires to terminate Executive for Cause, Employer shall give written notice specifying the act(s) claimed to constitute cause and specifying an effective date of termination, which date shall be no sooner than thirty (30) days after the giving of such notice. Employer may, in its sole discretion, give Executive an opportunity to rectify the reasons for termination. In the event Executive fails to rectify the act(s) claimed to constitute cause as set forth in the notice of termination, Executive’s employment with the Employer shall cease effective upon the d