Two weeks ago, the General Assembly’s Public Safety and Security Committee moved a bill to the floor that would open the state to competitive casino bidding. The bill stopped short of pulling back the authorization for the state’s two gaming tribes, the Mashantucket Pequots and Mohegans to build a third, satellite casino in East Windsor, a casino designed to bleed off motorists from heading out of state to the MGM Springfield, set to open 14 miles over the state line in Massachusetts.
The bill was largely a compromise between the MGM and tribal positions and was not satisfactory to either. MGM vowed to fight on for what it considers to be true competition, which would be to end the East Windsor casino. The tribes say they will refuse to take part in any bidding that involves non-tribal competition because that would violate the state tribal gaming compacts that have been in effect for a quarter century.
As long as the tribes’ exclusivity is guaranteed, they are obliged to pay the state 25 percent of slots profits. If it goes away, so do the payments. Last year that amounted to more than $250 million.
The tribes maintain that once the states seek bids they can stop payments. State Attorney General George Jepsen issued a legal opinion that the compact would not be violated until a competing license is issued.
MGM has been pushing to be allowed to bid for the right to build a $675 million casino in Bridgeport, the state’s largest city. It unveiled that proposal last September.
There can’t be a casino unless the legislature approves, however. The bill approved by the committee March 15 moves that process along. MGM spokesman Bernard Kavaler commented, “A resort in Bridgeport particularly would maximize the benefits to Connecticut in terms of jobs, economic development and revenue to the state.”
Meanwhile the tribes through their joint authority MMCT Venture are working to clear the East Windsor property where a cinema once operated. They are still awaiting Department of the Interior approval for the amendment to the tribes’ gaming compact with the state that is necessary for them to actually operate the $300 million satellite casino. The purpose of the casino is to protect jobs and revenues from being drained off by the MGM Springfield.
Demolition has begun on the 26-acre site. At the demolition ceremony in early March Mohegan Tribal Chairman Kevin Brown commented, “There have been a number of matters much like this one that have gone through the Department of Interior … and in each occasion, ultimately, it has been recognized that the bureau has to judge.” He added, “Here’s the bottom line: we know that we are on the right side of this.”
The earliest the casino could open, says Brown, is December 2019. That means that MGM’s scorched earth delaying tactics have achieve their goal of preventing the tribal casino from opening before the MGM Springfield.
At the hearing before the March 15 vote, East Windsor First Selectman Robert Maynard testified that the casino could be operating within two years.
He said, “I’d like to see a casino in Bridgeport. But in addition to this bill supporting Bridgeport, it takes away a casino from East Windsor, from North Central Connecticut. Why can’t we have both? Why do we have to penalize either one?”
MGM argues that the revenues the tribes pay the state are in decline, after peaking at more than $400 million a decade ago, to $271 million last year. The Bridgeport casino could match that amount, says Kavaler.
The mayor of neighboring city New Haven, where MGM has promised to build a job training center, also supports the Bridgeport casino. Both cities have high unemployment rates.
A spokesman for the mayor observed, “The job training facility would be a direct benefit to city residents and those from the surrounding towns for employment at the resort which is just a short train ride away. The skills to be acquired at the job training center are certainly transferable and marketable for those who acquire them.”
MGM promises 2,000 direct hire jobs and 7,000 created by collateral economic effects. It would pay taxes of $316 a year and a licensing fee of $50 million.
Bridgeport Rep. Steve Stafstrom told the Yale Daily News, “If Connecticut is going to expand casino gaming, we need to make sure we get the best deal and only an open competition can guarantee that,” adding, “The prospect of thousands of jobs for our community and tens of millions of dollars in new tax revenue cannot be ignored. I am proud to stand united with my delegation colleagues in support of the prospect of more development and growth for our city and the entire Bridgeport region.”
The bill will be taken up again when the General Assembly begins its next session on May 9.
