Watching the fevered activity by the Connecticut legislature to possibly authorize three more casinos in the state operated by the state’s two existing gaming tribes, communities where those casinos might be sited are announcing their interest, or lack of it.
The idea behind the legislation is to prevent as much state income from being sucked across the border south into Massachusetts, which is in the midst of authorizing three casino resorts, while one slots parlor is almost ready to open.
This would also be protecting the business interests of the Mohegan Sun and Foxwoods Resort Casino.
Last week Selectman Jason Bowsza of East Windsor cautiously observed, “We certainly don’t want to rule ourselves out from a $300 million economic development project.”
East Windsor officials have been discussing the possibility of such a casino and potential locations ever since the two tribes announced their collaboration two months ago. They want to be prepared to move quickly if the legislation is passed.
Similar activity can be observed in East Hartford, where officials have met with representatives of the tribes and with developers who want to build in an old cinema complex near Interstate 84.
In Windsor officials removed the town from consideration early on after hearing strong objections from residents.
In Enfield officials have decided to do nothing until they know more. They especially want to see how such a development could benefit the community, according to Mayor Scott Kaupin.
Both the Mohegans and Pequots say they don’t want to locate in a town that doesn’t want them.
In Windsor Locks, where Sportstech Venues, an operator of parimutuel venues, purchased land and invested $4.5 million in Bobby V’s Restaurant and Sports Bar with the thought that it might someday be a small casino, they are waiting with baited breath for the lawmakers to act.
Ted Taylor, president of Sportech, told the Register Citizen, “When we did that, I wasn’t envisioning anybody saying, ‘Oh, I’m going to do a 2,000-slot casino five miles down the road,” he said. “That is competition nobody was expecting.”
He has been talking with the two tribes at this location, which includes an existing 40,000 square-foot building on six acres. “There are ways that the tribes could use our facilities — land, buildings — in any scenario, that would allow them to create their new location,” he said.
Some town officials figure that such a casino could generate $300 million in economic activity.
The tribal casinos themselves admit that the new satellite casinos will drain some existing revenue from the existing facilities, but say it will be worth it.
Robert Soper, president of the Mohegan Sun’s parent company speaking last week at a regional economic forum, “There is going to be cannibalization but we feel very confident that with the right sized investment and the right program it’s going to be very successful.” He added. “We would rather be our own competitor and keep those benefits, keep those jobs here in Connecticut than have Massachusetts be the competitor for all those visits coming from Connecticut.”
He would rather than revenue NOT accrue to the $800 million casino resort that MGM is building in Springfield, Massachusetts. Estimates are that it could drain away more than $700 million and more than 9,300 jobs within four years.
Felix Rappaport, president and chief executive officer of Foxwoods, agrees and told the same forum, the Metro Harford Alliance, that the two casinos will make other changes as well, including diversifying into non-gaming activities.
“We’re really in the entertainment business. We’re not just in the gaming business,” he told the group.
Mashantucket Pequot Tribal Chairman Rodney Butler commented, “In recent history, the state — and rightfully so — has invested in several companies, either retaining them in the state, or bringing them into the state, to the tune of hundreds of millions of dollars to create, in some cases, several hundred jobs. We’re talking about no state investment to preserve thousands of jobs.”
How much revenue would be saved is unknown. One report commissioned by the two tribes estimates that the “recapture rate” for a satellite casino in the Hartford area would be about one-third.
Anthony Ravosa, who holds an option to buy a now defunct cinema in East Hartford, and wants to build a casino there, is more optimistic. He estimates no more than 3 percent loss for the two existing casinos would flow to a casino at his preferred location.
But there will be some loss, according to Mark Hichan of the law firm of Hinckley Allen. “For the region, I think that’s a zero-sum gain. It appears that there is a finite number of gamblers.”
Increasing the number of casinos in the Nutmeg State has many critics. Some of them quote Douglas Walker, who wrote “The Economics of Casino Gambling,” as saying, “Casinos are the politically easy path. From the politician’s point of view, it’s a lot easier to do this than it is to raise revenue from your traditional sources, which would be taxes.”
Former Congressman Robert Steele is a frequent critic of gaming who claims that its seamier side is often ignored. “Now the casinos are trying to attract more working- and middle-class people,” he told a group recently. “In fact, the new face of gambling addiction is an elderly lady.”
Steele claims that contrary to their claims, casinos don’t increase business for existing restaurants and other services. They create low-paying jobs. He has written a book called, “The Curse,” which is anti-gaming. “If a casino comes to your town, you will not recognize your community,” he says. “The pressure for more casinos is a daunting prospect for those of us who think we have enough.”
