The Mashantucket Pequots and Mohegan tribe, once bitter rivals for casino dollars, are now united in their pursuit of a third, satellite casino that they hope will prevent rival casinos in Massachusetts from hemorrhaging their revenues, and losing the state thousands of jobs.
The effort has brought the chairmen of the erstwhile rivals together in many ways. Rodney Butler, 38, is chairman of the Pequots. Kevin Brown, 50, is chairman of the Mohegans. As Butler observed in a recent interview: “We have to share lunch.”
For many years the Mohegan Sun and Foxwoods casinos had the New England casino market pretty much to themselves. When Brown became chairman in 2013 the Bay State was already two years into its casino approval process, which created an existential threat to the two Connecticut casinos. The tribal casinos have already been hit hard by the Great Recession and its aftermath, which dramatically affected revenues.
The biggest single threat is the MGM Springfield, which will be just a few miles from the border separating the two states.
A year ago the tribes began working together, but, as Butler told the Day, “We’d been working with our cousins across the river for a number of years,” adding, “There have been business and personal relationships for quite some time. Since I’ve been chairman, we’ve had joint conversations with the state.”
But partnering was a little harder to sell. “Reaction was mixed,” Butler said. “You’ve got people on the elders councils with deep-rooted memories, tribal histories that go back 400 years.” That history included the tribes backing different sides in a war that occurred almost 400 years ago.
Nevertheless common interests brought them together to sign an agreement that created MMCT Venture, the entity that will run the satellite casino. Now the tribes are getting together more often, including joint meetings of the tribal councils.
Now MMCT is going over five proposals to host that casino from four communities: East Hartford, East Windsor, Hartford and Windsor Locks. The proposals are being graded by weighing their gains against their possible negatives. It hopes to make a decision by December 15.
The tribes have no illusions that they won’t lose business to MGM and later to the Wynn Everett, which will operate across the river from Boston. But they do hope to “recapture” as much as possible of their market.
To judge how much they will be able to recapture the tribes have contracted Clyde Barrow, an expert in New England gaming. He generated a report several months ago that projected losses of thousands of jobs and millions of dollars by 2019.
The cooperation between the tribes only goes to far. The state legislature will have to take the final step of passing a law to authorize the third casino. The state lawmakers will open their 2016 session in February.
Meanwhile the tribes have asked the towns to expedite the approval process, including scheduling a referendum if that is part of the process. MMCT sent a letter to the towns, offering to bear the cost of the elections. For East Windsor that cost would be about $5,000 according to a city official.
“We want this to be something that will be accepted by the community where it ultimately lands in,” Brown told the Associated Press. “We want this to be done the right way.”
The tribes hope to have their casino up and running before the MGM Springfield opens in the autumn of 2018.
Some towns are further along than others. The planning and zoning commission of East Hartford has already approved of a special use permit for the now defunct Showcase Cinema property—that also includes a Wal-Mart—to find a new life as a casino. In October the town council authorized the mayor to submit a proposal to MMCT. The town’s charter does not provide for a referendum in the case of a casino.
The Windsor Locks Board of Selectmen has scheduled a December 15 public hearing on hosting a casino and possible schedule a referendum. That town’s first selectman, Chris Kervick noted that the council last week passed a resolution to begin negotiating with the tribes. The Connecticut Airport Authority, which operates Bradley International Airport in Windsor Locks, has already submitted a proposal to the tribes and so has Sportech Ventures, which operates an off-track betting facility.
East Windsor First Selectman Robert Maynard reacted to the letter from the MMCT by declaring, “If they want us to move forward with a referendum, we’ll do it.”
