Now that the proverbial bandage has been ripped away to expose the hemorrhaging wound to Connecticut’s gaming market that is the new MGM Springfield, there is still no apparent progress in opening the East Windsor “satellite” casino that is meant to help staunch that flow of lifeblood.
Two years ago the state’s Office of Fiscal Analysis projected that the MGM’ Springfield will cost the state almost $70 million in taxes during its first year of operation.
MMCT Venture, the joint authority of the Mohegan the Pequot tribes, is now talking a 2020 opening for the casino, whose site is six miles from the state line and 14 miles from Springfield.
Mohegan Tribal Council Chairman Kevin Brown issued a statement last week: “This gaming and entertainment facility will create jobs and will provide additional revenue to the state at a time when every dollar is precious.” He added, “We are full steam ahead and excited by the tremendous progress we’ve made to date.”
The $300 million casino would be the state’s fire off reservation casino. It is authorized by an act of the legislature, but the legislation requires that the Department of the Interior approve the amended tribal state gaming compacts, and it has only done so for one of the compacts.
Both tribes, and most state officials, strongly suspect that MGM lobbying is behind delays by the department. Each month the satellite casino is not built is $10 million that the MGM banks.
Two months ago the town’s planning commission approved MMCT’s development plans for a one story casino able to house 1,800 slots, 50 gaming tables, 10 poker tables and a five-story parking structure. Once all approvals are in hand the tribes say it would take about 20 months to complete construction on the former Showcase Cinema site. The tribes’ spokesman Andrew Doba said there will be a groundbreaking in the fall.
Many residents of the city are looking forward to hosting the tribal casino. One of them, Tommy Benn, was quoted by 22WWLP “I think everybody is looking for a change, a positive change, and I think this would put us in a positive direction.”
Foxwoods and the Mohegan Sun have been busy the last few years hardening their defenses with non-gaming amenities, such as the 3,700 foot zipline that starts at the top of the Foxwoods Resort Casino’s Fox Tower 32 stories. The High Flyer Zipline, actually four ziplines, propels thrill-seekers up to 60 mph.
The Mashantucket Pequot Tribal Nation, which owns Foxwoods, began adding entertainment venues five years ago as the MGM Springfield was getting approvals. Those amenities include the first on-site casino brewery in New England, and the U.S. largest indoor karting track.
It also books some of the top entertainers, competing with Las Vegas for the likes of Tim Allen, Alison Kraus and Howie Mandel. Under Rappaport’s leadership it began bringing the occasional Broadway musical to the property.
Everywhere on the property and especially on new buildings, you will find references to the tribe “The Wolf People.” The 1,600 room hotel operates at about 96 percent occupancy. That rate is expected to take a hit from the MGM’s opening.
President and General Manager Ray Pineault is confident that his resort will be able to withstand the competition.
He told the Las Vegas Review-Journal: “We have 1,600 hotel rooms, we have shopping, we have dining, we have a spa, we obviously have a full casino floor.” He added, “We have our Expo Center, which recently has been opened. We have brand names ranging from Bobby Flay to Chick-fil-A. We have close to 5,000 slot machines, over 280 table games, a poker room, a nightclub. Virtually anything that you want to do for a weekend away and just relaxation.”
Pineault says his team is the best in the industry: “When they’re leaving here, we want them telling a story and it’s got to be a good story. We never pretend that we’re perfect, but it’s how we make up for our mistakes. A lot of times, our guests want to hear us apologize and our team is fantastic at delivering that A service.
The pressure has been on for some time. In 2017-18 Foxwoods’ gaming revenue was $477.2 million, compared to $507.8 million four years previously and 41 percent less than in the casino’s salad days of 2004-05. Nevertheless, it still attracts 12 million visitors a year.
Foxwoods would like to get a piece of the action on sports betting, but that doesn’t appear to be happening this year.
Connecticut Governor Dannel Malloy, who has been trying to negotiate a deal on sports betting with the tribes since spring, talked about the desirability of such an agreement recently.
“This really is about competitiveness,” he said. “This is more about maintaining market share and perhaps capturing a portion of the illegal gaming revenue that currently is generated from people who aren’t paying taxes on it.”
Foxwoods has plenty of room to grow, if it chooses, on its 100-plus acre site, or on the remainder of its 1,600 acre reservation, but its $1.8 billion debt is a major impediment.
Tribal Chairman Rodney Butler, who took the interim CEO’s job when Felix Rappaport unexpectedly died in July, commented last week, “We are continually looking at resort amenities that add to the destination environment.” He added, “The more of those we can create, the more we can differentiate ourselves.”
Butler expects to be replaced as CEO sometime this fall, but he seems to enjoy the job while he has it and he frequently stops to chat with many of the 6,000 employees.
Several years ago the tribe began planning an indoor water park. Within weeks it will be unveiling Topgolf Swing golf simulators, along with arcade games, a lounge and bar. Coincidentally (or not) the MGM has Topgolf Swing Suite.
The Foxwoods resort has about 30 restaurants, which are constantly undergoing renovations and new concepts. The Festival Buffet, one of the more popular, will begin renovations this month.
Butler told Hartford Business, “It is going to reshape this side of the building. That is what we have been doing for the last few years — systematically going through the building and freshening up key locations.”
The casino does the same with its 4,000 slot machines, which are replaced at least every three years, an ongoing expense as each machine costs up to $20,000. It also has 250 gaming tables.
Foxwoods and the tribe are well familiar with their rival MGM, because they had a five year partnership that lasted until 2013.
Butler says he and others realized that there is a real difference between a Las Vegas style casino and one that fits in with the New England landscape.
He told Hartford Business, “Once you see another facility that is a third of the size, or a quarter of the size, you realize it’s just a local gaming facility and not a destination like Foxwoods.”
Speaking of size, there is no doubt that Foxwoods is the largest casino in North America. At 340,000 SF it is 100,000 SF largest than the Venetian.
The Mohegan Sun is located along the banks of the Thames River on 240 forested acres. Many of its best suites have views of this landscape.
The property includes many reminders of the tribal heritage, such as the “River Blue” 10,000 pound glass sculpture by Dale Chihuly in the hotel lobby. The sculpture sits at the base of Taughannick Falls, a 55-foot indoor waterfall.
Visitors to the property can follow a corridor to the newest facility, the 400-room Earth Tower and 240,000 square-foot Event Center that showcases Mohegan tribal culture. The Event Center opened in June and is already hosting significant conventions, such as TerrifiCon, a smaller version of ComiCon.
The Sun also recently opened the 12,000 seat Mohegan Sun Arena, that is the home to the WNBA Connecticut Sun basketball team and the National Lacrosse League New England Black Wolves.
MGM is a particularly vigorous competitor, which, if it weren’t obvious from its forays into federal court to try to kill the MMCT casino in the crib, or its attempts to bring a casino to Bridgeport, right in the tribes’ backyard, is made manifest at Bradley International airport, where MGM has a banner ad that asks those getting off the plane whether they would like to visit a casino in a city, or one “in the middle of nowhere.”
