Connecticut is unlikely to see Governor Ned Lamont, and the legislature, strike a grand gaming deal with the state’s two casino tribes, the Mashantucket Pequots and the Mohegans during this legislative session, the governor conceded last week.
Lamont and the tribes have been negotiating for five months, and one of the carrots that the governor is holding out is the possibility of a tribal casino in Bridgeport, the state’s largest city—and a monopoly on sports betting.
A sports betting bill, SB 17, was actually introduced in January and gained early support in both chambers. Governor Lamont at first expressed hope for early passage. “There are a lot of moving parts in politics, and I’ve got to bring some folks together to get this done. But I think it’s the right thing for the state, and that’s why I’m going to support it and put my shoulder to the wheel to get it done.”
However, in between those optimistic times and now, issues came to the fore that caused the tribes to put the brakes on the early, rosy predictions of passage.
Traveling to a tourism conference in Hartford last week, Lamont told the CT Mirror, “We’re trying to get something done, but we’re not going to get it done in this session.”
Pequot Chairman Rodney Butler wasn’t so sure. He told attendees at ICE North America that he’s still holding out hope that a deal can be reached in the next five weeks of the regular session.
“And if that doesn’t work, maybe we’ll have a special session to reach an agreement,” Butler said.
Bridgeport is the prize that MGM Resorts International, the tribes’ arch rival, made a play for two years ago when it proposed a $675 million commercial casino there that would create 2,000 jobs. However the state government can’t allow a commercial casino in the state without breaking the tribal state gaming compacts—and losing the 25 percent of slots revenue the tribes pay each year. In the 25 years since the Indian casinos opened in Connecticut the tribes have paid a total of $8 billion.
Lamont wants the best of both worlds: a new casino in Bridgeport, but without a breakup with the tribes. And maybe with a deal that somehow includes MGM.
At the recent Connecticut Conference on Tourism sponsored by Foxwoods Resort and the Mohegan Sun, Governor Lamont declared, “Together we’ve had a very strong bond and contract going back well over a generation.” He continued, “I’m going to do everything I can to make sure that contract stays intact. We are working together going forward.”
Lamont said he would like to do a casino in Bridgeport that would involve both tribes and MGM, but which retains the compacts. He said he also want to include internet and sports betting. He predicted such an all-encompassing deal was not possible by June, when the current legislative season ends.
He was joined by Butler, who sounded open to a casino in Bridgeport, although the tribes and their joint authority MMCT Venture have begun work in partnership on their East Windsor casino, which is just 14 miles from the MGM Springfield casino. It is intended to come some of the money in the state that might go across the border to Springfield.
Sports betting, and who controls it, is an integral part of these negotiations. Lamont says he wants to legalize it, but only if all the other related issues can be dealt with at the same time.
During a press conference at the tourism gathering, with Butler at his side, Lamont said, “From my point of view, I want a global solution to this thing that’s been stuck in legal limbo for an awful long time.” He added, “And I’d love to make a deal with Rodney. I’d love to make a deal with Mohegan and MGM in a way that I honor my compact with Rodney and the tribes—that includes internet, it includes sports. But I’m not going to do it if we don’t have a global solution.”
His goal during the negotiations has been to try to redirect the tribes’ interest away from East Windsor and towards Bridgeport, which would be farther away from Springfield, and less of a threat to MGM. In return the tribes would get exclusive rights to sports betting in the state. This is something they maintain they already possess, although that is not a universally held opinion.
Asked about this Butler quipped, “That would be easy, right? Nothing complicated about that.” He continued, “It’s just complicated. As the governor said, we’re looking for a global solution, and there are a lot of moving parts.”
Butler observed, “We looked at Bridgeport 20 years ago back in 1996, we actually won that bid,” Butler said. “So if it makes financial sense for us in the state, we’d certainly consider that as an option.”
But Butler made it plain that the tribes have no interest in cooperating with MGM. At a mention of the gaming company by a reporter, Butler said “They’re not a part of the equation. They’re doing well in Springfield.”
The governor must step gingerly in proposing a new partnership with the tribes, since any deal he strikes without an open bidding process will likely be challenged in federal court by MGM. They sued in 2016 in federal court to try to stop the East Windsor casino. The suit was dismissed because permits had not yet be awarded.
A spokesman for MGM made plain that it was retaining the option of reopening the lawsuit: “While we appreciate Governor Lamont’s diligent efforts to work with all parties and put Connecticut’s interests first, our view remains, and the residents of Connecticut overwhelmingly agree, that an open, competitive, transparent process is the best way for Connecticut to maximize economic benefits.” The spokesman added, “In our view, that is as true for a commercial casino license as it is for sports wagering.”
In a separate statement to Connecticut Public Radio MGM said, “The Attorney General’s office has repeatedly warned, as recently as last year, that pursuing a no-bid approach in East Windsor would expose Connecticut to significant legal risks. As MGM has always stated, we will continue to pursue all legal options, including litigation, to defend our right to compete in Connecticut.”
This leaves Bridgeport’s local officials and legislative delegation to work out which side they are on. Rep. Chris Rosario told CDC Gaming Reports: “A job is a job for the people of the city of Bridgeport, no matter where it is coming from. But with that said, we’ve been steadfast. MGM has a commitment to Steel Point. They’ve been committed to the city of Bridgeport and although the tribes have been committed to the state of Connecticut and the city of Bridgeport through the Pequot fund, they haven’t really had a presence in the city up until recently with their agreement with the [Webster Bank] arena and even that has kind of underwhelmed.”
Bridgeport Mayor Joe Ganim, who has been a major cheerleader for a Bridgeport Casino, said he doesn’t care whether it’s a commercial or Indian casino. “I am committed to working with the Bridgeport delegation and the Governor’s office to move forward any investment in our city that will increase jobs opportunities, and complement the city’s growing entertainment district,” he said.
Rep. Joe Verrengia, co-chairman of the joint legislative committee that oversees gaming, supports the governor’s goal of one big agreement. He told Yogonet: “The only frustration on my end is the fact that a deal hasn’t been consummated at this point. However, I support the governor and his overall strategy when it comes to gaming.” He added, “I think we just can’t look at this as a sports betting issue. I think we need to come up with an overall, comprehensive gaming policy and that takes time.”
Verrengia is insistent that the rights guaranteed in the existing gaming compacts do not include exclusivity of sports betting, something that was not even legal in most U.S. states when the compacts were negotiated. “I have to imagine that that’s probably one of the major issues as their negotiations are going forward and that’s probably a big reason why this isn’t further along as we all hoped it would be,” he said.
The tribes, who had been stymied since September 2017 in their efforts to begin building at East Windsor, recently got the final approval from the Department of the Interior to amendments to their gaming compacts—amendments they needed to go forward with the satellite casino.
The tribes have reason to believe that MGM was able to subvert that process by gaining influence over the former Secretary of the Interior, Ryan Zinke, who resigned earlier this year under an ethical cloud. But they were never able to prove their suspicions.
At this point, says Butler, MMCT, the joint tribal authority, is seeking financing to begin building. “We’re actually in that process of getting financing,” the chairman said. “We basically had to dust everything off. We’ve been on hold for a year and a half, I mean re-engaging with construction teams and design documents and everything. So, we’re in that process now.”
When asked by a reporter if he was certain that MMCT would build the satellite casino, Butler said, “Yes, we are moving forward with East Windsor.”
Rep. Christopher Davis, whose district includes East Windsor, says his constituents ask him about the casino more than any other topic. He told Yogonet, “It’s something that people have been waiting for I think for over two years at this point, so I think there’s a level of anxiety and anxiousness to try to begin the project as quickly as possible so that the town can begin to benefit from its construction and ultimately with its presence here in town.”
MMCT has demolished the old Showcase Cinema, and some of the homes that it purchased near the site.
