Easing Way for Third Connecticut Casino

A bill to smooth the process of creating a third tribal-owned casino in Connecticut was introduced by state Senator Catherine A. Osten last week. The bill would remove the requirement that the federal Department of Interior approve the casino and state it isn’t a violation of the tribe’s compact with the state.

Easing Way for Third Connecticut Casino

Connecticut Senator Catherine A. Osten has introduced a bill that would enable to tribes to go forward with their East Windsor casino, which has so far been stalled due to political maneuvers that can be attributed to MGM. This included allegedly persuading the Interior Department to delay issuing a needed approval of the amended tribal state gaming compacts so the tribes could begin building.

The senator’s bill, which already has the signatures of lawmakers from the southeastern part of the state, where the casinos are located, would remove that requirement, which would allow the tribes to move forward with their joint project.

In 2017 the legislature authorized the tribes’ joint authority MMCT Venture to build a $300 million satellite commercial casino. Under advice from the state attorney general, George Jepsen, it included a provision requiring that the tribes amend their compacts with the state, clearly stating that their operation of a commercial casino did not violate the compact’s guarantee of exclusivity. To further cover the state’s back, the bill required that the change be approved by the Interior Department.

The Interior Department’s refusal to approve one of the compact amendments prompted the state’s congressional delegation to call for an investigation by the department’s Inspector General.

Now the Justice Department is reportedly investigating whether recently resigned Interior Secretary Ryan Zinke lied to the IG about the East Windsor casino issue. The Washington Post reported last week that Zinke had also been investigated over real estate dealings in his home state of Montana.

The IGs reported referred the matter to the Justice Department. Zinke denies the allegation. A spokesman said he voluntarily answered the IG’s questions and “to the best of his knowledge answered all questions truthfully.” The Justice Department has declined to comment.

U.S. Senator Richard Blumenthal issued this statement last week: “New information that former Interior Secretary Zinke may have lied to investigators—a federal crime—is serious and significant, opening a new phase in holding Zinke accountable for his improper conduct. The prosecutors in the Department of Justice’s Public Integrity Section bring criminal charges against law-breaking officials and conduct trials and other proceedings—now a distinctly possible outcome for Zinke. The reason I called for the Inspector General’s investigation, which led to this inquiry, was Zinke’s possible conflicts of interest, improper favoritism, and other potential misconduct—which could give rise to charges of perjury and fraud, among others.”

According to some documents obtained under the Freedom of Information Act, Interior Department officials had been prepared to approve the compact amendments, until they were suddenly ordered not to do so by Zinke.

The Mohegan and Pequot tribes and the state of Connecticut sued to try to force the department’s hand, but in September a U.S. district court dismissed their initial claim. The Mohegans declined to appeal after the department acknowledged the validity of its amendment compact.

But then the Pequots and the state renewed their case, seeking in October to amend its claim, claiming that the department staff had “prepared draft approval letters” on Oct. 8, 2017, but then declined to issue them under pressure from now former Nevada Senator Dean Heller and Nevada Rep. Mark Amodel, who were allegedly acting for MGM, which is based in Nevada. Heller lost a reelection bid last November. He has been spoken of as a possible successor to Zinke.

The tribe’s court documents assert “Senator Heller directly pressured Secretary Zinke to do what was necessary to stop the Tribes’ joint venture casino project during a private dinner at a steakhouse in Las Vegas, on or about July 30, 2017.” Zinke’s calendar shows he was in Las Vegas on that date.

The documents also assert that MGM was a major contributor of Heller. They claim Heller pressured Zinke to stop the joint venture casino project.

Renewing Bridgeport Casino Proposal

Meanwhile, MGM, which first proposed a casino in Bridgeport more than a year ago, reportedly believes its political position to be improved over last year. Emboldened, it plans to renew its call for bidding on a commercial casino this year.

Last year such a bill was approved in the House, but went no further.

However, the new legislature will be minus three state senators who have resigned to take positions in the new Lamont administration. One of them is Senator Tim Larson, who has chaired Public Safety & Security Committee of the General Assembly and has been a strong supporter of the tribes’ commercial casino. Two other supporters are Senator Beth Bye and Terry Gerratana, who are also joining the new administration.

Sensing a possible movement in the political landscape, MGM released this statement: “These changes, as with many other developments during the past year, demonstrate that as time goes on, more and more people are recognizing that the best move for Connecticut, unquestionably, is an open process for a commercial casino license and for sports wagering. That is the public’s view, and increasingly the view at the State Capitol.”

A recent poll indicated that more than 70 percent of the public favored open bids on commercial casinos in the state.

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