As Connecticut’s Bridgeport delegation have begun to agitate for reconsideration of a bill that could allow a commercial casino in the state’s largest city, the state’s gaming tribes threatened to withhold their 25 percent share of slots revenue from the state.
Mashantucket Pequot Chairman Rodney Butler, whose tribe owns Foxwoods, drew a comparison to his telling his wife of 17 years that he would like to shop around for a new wife, new children and a bigger house. “I don’t think she’d appreciate that.”
Continuing the marriage metaphor Butler added, “It’s going to be a very expensive conversation.” He predicted that any such effort would end up in court.
The tribes’ tribal state gaming compacts, first signed in the 1990s, guarantees the tribes a monopoly on Las Vegas style gaming—in return for the 25 percent. If their exclusivity goes away, the tribes have the right to withhold the payment. Butler’s statement was that the tribes wouldn’t wait until a commercial casino is built before withholding the money.
Fifteen Bridgeport lawmakers are echoing the call MGM International—the arch-nemesis of the gaming tribes—for a competitive casino process. They want a casino on the waterfront. MGM has proposed a $700 million project, which it claims would create 7,000 jobs in the city. “We need to get people jobs in the city of Bridgeport because it’s literally life or death,” declared Rep. Chris Rosario. They have introduced SB 7055 “An Act creating the Connecticut Gaming Commission and creating a competitive bidding process for a resort-casino.”
The tribes instead support a bill by Senator Cathy Osten that would remove the state requirement that they get the nod of approval from the Department of the Interior on amendments to their state tribal gaming compact before they can begin building their joint $300 million satellite Tribal Winds casino in East Windsor, 14 miles from the MGM Springfield casino in Massachusetts. Two years ago the legislature approved of the partnership of the tribes and the formation of a tribal authority MMCT Venture to run the casino.
Osten’s bill is one of four gaming-related bills that will be discussed during hearings before the legislature’s Public Safety and Security Committee. She hopes to “fix” the situation where the tribes are stuck in the mud because the Interior Department has refused to give is approval on one of the two amended compacts. That requirement was a condition of the law that authorized the third casino.
The tribes and the state’s congressional delegation accuse former Interior Secretary Ryan Zinke of giving in to pressure from the Nevada congressional delegation, who, they allege, strongly lobbied Zinke to protect the interests of MGM, which is a Nevada company.
The Interior Department did recognize the amended Mohegan compact, but has remained silent on the Pequots’ compact. This caused the state and the tribe to sue in federal court and for the congressional delegation to urge an investigation by the department’s inspector general.
MGM has used every maneuver it could muster to fight the third casino, hoping to delay it as long as possible, to blunt that casino’s effect on the bottom line of the $960 million MGM Springfield, which opened in August. The tribes’ effort was quite publicly intended to ameliorate the effects of the Springfield casino on Foxwoods and the Mohegan Sun.
The tribes claim that the Tribal Winds Casino, could generate as much as $75 million a year in tax revenue to Connecticut and create 5,000 jobs.
Although Osten favors her simple fix of the problem, Public Safety and Security Committee Co-chairman Rep. Joe Verrengia is pushing for a comprehensive approach to all of the state’s gaming issues. He wants to create a gaming commission, using as his model that Massachusetts Gaming Commission, to be in charge of all of the state’s gaming.
Osten, whose district includes the tribal casinos, had a hot exchange during the hearing with Rep. Chris Rosario, one of the Bridgeport 15. Osten accused the Bridgeport delegation of trying to steal jobs from her district.
“I would not try to take jobs away from you. I would never try to do that. And that’s what is happening here,” Osten said. “This is truly the worst kind of work that is happening here. It is pitting region against region… I am more than frustrated with this.”
Rosario shot back, “Last time I checked the city of Bridgeport was in the state of Connecticut. That’s why I’m fighting. It’s life and death,” testified Rosario loudly. “Fifteen years ago, in 1994 or 1995, it was this body that failed the City of Bridgeport. They’re the ones that voted the casino down. My mother wanted a job there. I was a latch key kid. She worked three jobs… three jobs! My brother was incarcerated. She didn’t get a union job.”
Osten offered her own story: “I didn’t have a union job either and I started working when I was 14 years old and I was the oldest of seven kids and I took care of all of them!” she said. She said several times that she was “irritated” and “frustrated” by the Bridgeport lawmakers.
Verrengia several times admonished Osten for interrupting: “I certainly appreciate your passion, but I am asking you to be respectful,” he said.
Osten argued for the continued exclusivity of the tribal casinos, citing the long relationship between the tribes and the state. She hypothesized what might happen if someone tried to encourage competitors to Electric Boat or Sikorsky Aircraft Corp., which are both based in the state. “I posture that we would not invite Newport News up here to take the place of EB or try to bring a competitor of Sikorsky or Pratt & Whitney.”
The Bridgeport lawmakers contend that that compact’s time has passed and that the state would be better served by a competitive request for proposals that would allow the state to determine the worth of a casino.
Rep. Ezequiel Santiago declared that an open bidding process is “the way we do things here in Connecticut” and added, “It helps to make sure things are transparent, we have an opportunity to look at what’s the best out there for us.” He argued that Bridgeport’s proximity to the New York City and Long Island market, “makes perfect sense.”
Meanwhile officials of the city of Norwich joined other southeastern cities and towns to oppose the Bridgeport casino. They say the proposal threatens their region’s jobs and the tribes’ revenue sharing, which benefits their communities.
Norwich Mayor Peter Nystrom sent a strongly-worded letter to Governor Ned Lamont “to express my grave concern” about the apparent about face in the state’s attitude towards a third casino. He asked the governor to back last year’s vote that “came to the conclusion that a casino in Bridgeport was not in the best interest of the state of Connecticut.”
The Norwich town council also adopted a resolution opposing “a proposed MGM-run casino in Bridgeport” or “negotiations with MGM or any other commercial entity which may jeopardize the local effect of the compact with the Mashantucket Pequot and Mohegan Tribal Nations or risk a breach of the same.”
In speaking in favor of her bill to remove the requirement for federal approval before the tribes can begin building, Osten declared, “I am certain we are going to find Secretary Zinke acting in collusion with MGM executives.”
She was referring to a Washington D.C. grand jury that the Washington Post reported is investigating Zinke’s delay of the East Windsor casino.
Days before the hearing Osten said, “The stench surrounding Ryan Zinke’s role in this tribal delay is overwhelming, and the fact that a grand jury is now hearing new evidence about Zinke’s role in this is even more reason to pass Senate Bill 11 and get on with the business of creating jobs and growing Connecticut’s economy.”
The senator added, “We can’t let one man, who is now being investigated by federal authorities, stand in the way of what was green-lighted a year and a half ago by another Interior Department official. It’s outrageous.”
MGM commented on the possibility that Governor Ned Lamont might be open to a commercial casino in Bridgeport. MGM spokesman Uri Clinton, who is also president and CEO of the Empire City Casino in Yonkers, told reporters “The governor has been open to a serious policy proposal. The last governor simply was not.”
