Competing bills on a third casino in the state will now holding hearings in the Connecticut legislature.
Last week the legislature’s Public Safety and Security Committee voted to hold a hearing on a new bill that would completely overturn last year’s law that authorized the state’s two gaming tribes, the Mohegans and the Mashantucket Pequots to build a commercial casino in East Windsor.
The two co-chairs, both senators, faced a rebellion from their foot soldiers, who insisted on reviving the issue of the commercial casino, despite the chairs’ decision to table it for this short session.
It was the last day of the session when new proposals could be introduced in the session that ends May 9. The committee voted 18-6 to override the chairs and put the commercial casino proposal on the agenda for hearings and further debate.
The bill was a so-called “shell bill,” which means that details can be fleshed out later.
The chances of the legislation passing this year are slim, and even if it did pass, lame duck Governor Dannel P. Malloy would most likely veto it in his last year.
The new bill would create a process whereby any casino developer, including the tribes, could bid for the right to operate a commercial casino. That’s what MGM Resorts, the tribes’ rival, has called for.
The bill would develop “a possible casino gaming facility in the state” and require state officials “to develop and issue a request for proposals” and “repeal the authority of MMCT Venture, LLC.” MMCT Venture is the joint development authority forged between the former casino rivals, the Mashantucket Pequots and Mohegans.
MGM has bitterly fought the tribes’ attempt to blunt the effect of the $960 million MGM Springfield on the revenues of the Mohegan Sun and Foxwoods by building a third casino that would waylay some of the traffic expected to leave the state to drive 14 miles into the Bay State.
Besides lobbying state lawmakers to overturn the tribal grant, MGM has also proposed a $675 million casino in Bridgeport, the state’s largest city, which sits adjacent to what could be the largest gaming market on the East Coast, in New York.
Rep. Joe Verrengia, arguing for debating the bill in the current session, said “We’ll have as much public discussion and as much public input as it would take to fully vet it,” adding, “We’re certainly not going to limit discussion on an issue that could potentially have a big impact on the state of Connecticut just because of time. We have plenty of time in this session to vet this issue and many others.”
Rep. Jeffrey Berger argued for the discussion, “The process here is important, and the process here is that there are many members certainly in the House — not sure how it falls in the Senate — but certainly many members and colleagues both as Democrats and Republicans in the House are very concerned about having an open, public discussion on a proposal for commercial gaming.”
Senator Edwin Gomes, who represents Bridgeport, where MGM would like to build a commercial casino, declared, “This issue—or what can become an issue—is something that needs transparency at this time,” Gomes said. “We cannot linger for a year. There’s a lot involved in this. If we have this public hearing, you will see that what we’re saying is true: There’s a lot to be said and a lot to be acknowledged in order for this thing to go forward or backward or whatever.”
Senator Tim Larson, who represents East Windsor, where the tribes have started work on converting a defunct cinema into a tribal casino, said the tribes have been good financial partners with the state over the years. “I’ve also heard there is a bill circulating around — and I’ve yet to see it — that eliminates the casino in my district,” he said.
Also opposing the bill was Senator Steve Cassano, who said, “There’s no way that we can have the kinds of discussions that need to be held in a short session where we are already halfway through. If we are going to do this, let’s do it right. Let’s do it in the ‘long session’ when we have the time to do it.”
The argument could be made that MGM’s activities are merely playing for time to give its Springfield casino long enough to establish itself before a tribal casino can interfere.
The $300 million tribal casino is intended to blunt the effects of that casino—and they had hoped to open theirs before it opened. But MGM’s successful delaying tactics have prevented that.
The MGM Springfield will open with 3,000 slot machines and 100 gaming tables, which will dwarf the East Windsor casino. It will also be a full-fledged casino resort, whereas the East Windsor casino will be only somewhat more than what MGM’s CEO James Murren has scornfully referred to as a “box of slots.”
Indian gaming has had a secure monopoly against commercial competition for more than 25 years, but declining revenues from the two casinos have weakened the tribes’ position. The state collects 25 percent of Indian gaming revenues. It has collected $7 billion total overall, but last year’s $260 million was a much smaller amount than the tribes paid at their height of profitability.
The East Windsor casino is currently stalled by the Department of the Interior’s refusal to rule on the amended tribal state gaming compacts that would allow the tribes to operate a commercial casino without breaking those compacts by legally competing against themselves, eliminating their obligation to pay the 25 percent.
The tribes and the state government have called foul on Interior, which they claim was unduly influenced by lawmakers from Nevada, the home base of MGM.
MGM spokesman Uri Clinton, commented, “There’s support for an open competitive process. There’s a lot of work to do, a lot of questions that we’re in the process of answering. But there’s support.”
Meanwhile MMCT Venture announced last week that demolition work on the old cinema has been pushed back several more days. The building has to come down before casino construction can begin. Such work can begin even though the federal government has not yet affirmed the viability of the state tribal gaming compact amendments.
MMCT Andrew Doba said the delay was needed so accommodate those who want to attend the ceremonial groundbreaking.
“We want to event to be as accessible to as many people as possible,” said Doba.
