A task force of the Connecticut legislature is studying the idea of allowing the state’s three off-track betting centers to install slot machines and video gaming in order to stem the hemorrhaging revenues at the facilities. The task force will probably recommend that action to both houses.
The simulcast centers are located at Bridgeport, New Haven and Windsor Locks.
According to Senator Andres Avala, whose district includes Bridgeport and who is co-chairman of the task force, “We need to develop some stability. I’m hopeful a bill will come from that. It’s time to go forward and propose legislation that would do what we are asking to do.”
The effort to raise more money at the simulcast centers is directly related to the state’s two Indian casinos, Foxwoods and the Mohegan Sun, that have both experienced revenue dips since competition started springing up in neighboring states. As a result, the state’s tax revenues, based on 25 percent of the casinos’ revenues, are also declining. And it can only get worse as Massachusetts and New York expand gaming.
The high water mark for revenues from the two Indian casinos was $430 million in 2007. Since then revenues have fallen by $134 million. A report by two state offices that monitor revenues predicts that revenues will fall to $212 million by 2018.
The same agencies project that if each of the three off-track facilities was allowed to deploy 2,500 they would produce a total of $301 million annually, with the state’s profits depending on how large a share it takes. If the state takes the same percentage it does from the Indian casinos that would be $75 million. However, the addition of slots would also cut into the Indian casinos’ take, and accelerate their decline, the agencies warned.
The 19-year old exclusivity agreements the Mashantucket Pequot and Mohegan tribes have with the state gives them a veto over any such action. A spokesman for the Mohegan tribe, Chuck Bunnell, said they would at least listen to a proposal to alter the agreements. “If asked to speak about this on a government-to-government basis with the state, our chairman and Council will make themselves available,” he said, according to the Connecticut Post.
Some Connecticut residents find it very easy to make the half hour trip to New York’s new casinos in Queens and Yonkers. In fact, they find it easier than going to either Foxwoods or the Sun.
The city of Bridgeport supports adding slots at the Shoreline Star and the other two facilities. They would, create much-needed jobs in Bridgeport and continue to improve on Bridgeport’s exciting nightlife, while bringing new tax revenue to our city,” said Mayor Bill Finch last week, quoted by the Connecticut Post.
Estimates are that each facility would be able to add 100 jobs if the additional positions are created.
Members of the task force say they are trying to keep gaming dollars in the state, not expand gaming. Rep. David Alexander commented, “We are not trying to increase the number of people going to casinos. We just would rather have them play in Connecticut than Massachusetts, New York and Rhode Island.”
