The Department of the Interior last week took the action that the State of Connecticut and its two gaming tribes went to court to try to force: publishing a notice in the Federal Register that one of the amendments to the state tribal gaming compacts submitted to the DOI last summer. The action addressed the Mohegan tribal compact, but not that of the Mashantucket Pequots.
This could remove any blocks to the tribes opening the third tribal casino, a satellite casino, in East Windsor.
It is only half a loaf however, since only the Mohegan compact was noted. The Department published notice that the amendment “is considered to have been approved,” since Interior took no action on it within 45 days of the tribe submitting it.
However, the Pequots expect to have their compact approved soon. “We are pleased that the department is taking this step and we expect similar action on the Mashantucket Pequot Tribal amendments in the very near future,” said Andrew Doba, spokesman for MMCT Venture, the joint tribal gaming authority.
This rekindles the brass knuckles battle between the tribes and MGM Resorts International, which immediately protested the decision.
MGM released a statement that said, “Today’s Federal Register notice raises more questions than it answers. The notice provides no supporting reasoning and contradicts not only the Interior Department’s prior ruling, but also the clear limits on off-reservation gaming imposed by federal law. After consulting with our attorneys, we can find no legal justification for the Interior Department’s unprecedented action.”
MGM said it planned to file a Freedom of Information Act (FOIA) request to “uncover the process and inputs that led to Friday’s notice.”
MGM has aggressively fought the tribes’ proposed casino, which is clearly intended as a defense against the $965 million MGM Springfield that will open in less than three months 14 miles from the Massachusetts-Connecticut boundary. Studies have shown that the tribes could lose millions in revenue annually, as well as around 9,000 jobs.
The Mohegans and Pequots formed MMCT Venture as a joint authority to operate the casino, which has been delayed for almost a year due to MGM’s successful tactics.
MGM first went to federal court to try to stop the tribes, then last year it opposed the bill that authorized the tribes to build in East Windsor. Then in the fall it proposed that the legislature open the state to commercial bids and unveiled a $675 million casino proposal for the state’s largest city, Bridgeport along the waterfront. This drove a wedge between Bridgeport’s large and powerful legislative contingent, which fought this spring for the Bridgeport casino, and much of the rest of the legislature, especially members from the Hartford area and eastern part of the state. That proposal has probably been dealt a deathblow by the announced purchase of the Yonkers Raceway racino by MGM last week.
During that interval the Interior Department did not act on the amended compacts. Investigative reporters determined that MGM and lawmakers from Nevada lobbied top officials to sit on the approval since the bill, Public Act 17-89, that authorized the casino required that the federal government approve of the change in the compacts.
The compacts spell out the revenue-sharing between the tribes and the state on the East Windsor facility, which so far is just a future construction site without any building activity. Demolition of the abandoned cinema complex began in March. Financing for the casino has not yet been acquired. The tribes have already invested $300 million in the site.
MGM’s statement added, “Unlike the Interior Department, MGM’s position has not changed: We remain committed to a transparent process that would give all parties an equal opportunity to compete in Connecticut.” The statement continued, “We believe our proposed world-class entertainment complex in Bridgeport is the best option for creating new jobs and revenue, and we will vigorously advocate for our legal rights — including by challenging Public Act 17-89’s unconstitutional no-bid scheme — if that is what it takes to prevail.” MGM did not refer to its purchase of the Yonkers Raceway, which is about 48 miles from Bridgeport, and would probably be considered too close to have another MGM facility.
Doba fired back, “For the last year, they’ve been making countless promises to Bridgeport all while they were actively working to buy the facility in Yonkers,” he said, referring to the Yonkers Raceway in New York state. “Think about that. Think about how many times they testified at the legislature or held a press conference talking about what’s in the best interest of Connecticut, when they were working to buy a facility just a few miles from the border. “I am quite frankly baffled as to why anyone would take anything they say seriously. MGM cares about one thing: their bottom line.”
Doba added that the tribes now intend to go forward with their satellite casino. “We want to do right by Connecticut and to preserve the strong relationship between our tribal nations and the state,” he said. “The decision is the latest step in our overall goal to preserve thousands of good paying jobs and millions in state tax revenue.”
U.S. Senator Richard Blumenthal, who, along with several members of the state’s congressional delegation protested the Interior Department’s lack of action on the compacts, which sparked an internal investigation by the department’s Office of the Inspector General, said the delay had caused real hardship for the tribes and the state. “This delay has exacted real world costs and the Inspector General investigation into conflicts of interest must continue,” Blumenthal said.
The senator added, “The timing again raises the reasons the IG is investigating — namely conflict of interest. The potential favoritism is a pattern here. This inexcusable delay squarely raises questions about why they would need so much time.”
