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MGM Springfield in Massachusetts opened its doors eight months ago just six miles from the Connecticut border, and has caused the state’s two casinos to deal with drastic year-over-year decline in their slot revenue.
Foxwoods Resort Casino features deluxe accommodations, fine dining, a wide variety of entertainment attractions and shopping. Two Native American nations that have joined forces to build Connecticut’s third casino announced on Feb. 27 that they have selected East Windsor as the site of their new project.
After a lengthy battle with the U.S. Department of Interior, the Mashantucket Pequot and Mohegan tribes have been approved by the federal government to move forward with their joint venture and build a third casino just north of Hartford.
The tribes are hoping that by placing a casino in between the state’s capital and their main competition, they can keep revenue in the state and away from MGM. They formed a joint venture in 2017 called MMCT to build a third casino in East Windsor, which they have named Tribal Winds Casino.
The state agreed to the joint venture, but the Department of Interior, which is the agency in charge of Native American affairs, would not allow the tribes to break ground.
Ryan Zinke resigned as Secretary of the Interior at the start of the year and less than three months later, the DOI has changed their tune, approving the venture on Thursday afternoon.
“Today is a great day for the Mashantucket Pequot Tribal Nation and the State of Connecticut,” said Chairman of the Mashantucket Pequot tribe, Rodney Butler to the Connecticut Mirror. “I applaud the actions of the Department of the Interior and extend my sincerest gratitude to Assistant Secretary Tara Sweeney and the Office of the Solicitor at the Interior Department for their assistance in resolving this matter.”
The DOI’s approval of the new project comes just a couple weeks after representatives of the tribes threatened to stop making payments to the state if they weren’t given a piece of the possible sports betting pie that could be up for grabs in Connecticut later this year.
There is no real timeline available for when the casino will be built. The tribes have yet to procure construction financing and have been bringing significantly less revenue than before.
When the state’s gaming commission released their February revenue reports last week, Foxwoods netted $34.2 million in revenue, down eight percent from February 2018, while Mohegan Sun took in $43.5 million in revenue, down about seven percent year-over-year.
Those numbers have become the norm and a larger trend is taking shape. In terms of revenue, January was the worst month the tribes have seen in decades with Foxwoods netting $31 million and Mohegan taking in $40.7 million.
The state government taxes the tribes 25 percent on revenue, which gives the state just as much incentive as the tribes to make Tribal Winds a success.
Photo Credit: MMCT Venture
Connecticut is well underway with regard to its plans for opening a 3rd casino, however the location for that casino has yet to be determined. State legislators are currently hearing pitches from potential operators in an attempt to decipher the best, most strategic location for this new site.
The location of the casino is an incredibly important because it is going to be inserted directly into the bill. Having said that, a bill that would pave the way for a third casino has not even been drafted yet. Until a location can be determined, Connecticut’s 3rd casino will remain nothing more than a nice idea.
Third Casino In Connecticut
Hearing Pitches From Casino Operators
Joe Verrengia is the co-chair of Connecticut’s public safety and security committee, and he is going to play a major role in this bill-drafting process as his committee oversees state gaming operations. He recently commented on the process by saying, “We haven’t drafted a bill yet, and even before we think about drafting a bill and have a public hearing, we need to get feedback from all the stakeholders and put all the options on the table.”
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The stakeholders which he is referencing are representatives from Foxwoods and Mohegan Sun casinos, which will also play a vital role in determining the best location for a third casino. In addition to representatives from Mohegan Sun and Foxwoods, 2 Native American tribes (the Schaghticoke Tribal Nation and the Golden Hill Paugussetts) as well as MGM will also partake. MGM is involved because they are currently constructing a gaming operation in Springfield, Massachusetts that will open next year. Being that Springfield is located close to the Connecticut border, it is only right that they are let in on the planning process.
Right now, the only 2 casinos in Connecticut are owned by Native Tribes. These licenses were awarded after long, arduous legal battles. In order for a 3rd casino to be built in Connecticut, a lot must be done from a legal standpoint. The reason for this is due to the fact that, if Connecticut allows an outside operator, the two tribes that currently have casinos will be released from paying taxes to the state. For Connecticut, this would mean the $200 million in taxes earned each year would vanish, seemingly overnight. Of course, the goal of this legislative process is to get Native tribes on board with the idea of a 3rd casino. If they are on board, Connecticut can not only retain the tax revenue they are receiving currently, but also increase it.
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At the present moment in time there are a lot of unknowns surrounding this situation. Seeing as a bill has not even been drafted yet, it is safe to say we are a good ways away from a 3rd Connecticut casino. The real takeaway from all of this is the clear alteration of opinion in New England. Only 20 years ago the region was, quite clearly, opposed to gambling of all sorts. Nowadays, however, that much is beginning to change, and fast.