Third Casino In Ct

1. The Connecticut legislature has approved of a bill authorizing a third, satellite tribal casino to be operated by the Pequots and Mohegans. The bill awaits the signature of Governor Dannel P. Malloy (l.), who applauded the passage of the bill as a “job protector.” Also waiting in the wings is a promised lawsuit by MGM Resorts International, which is building MGM Springfield in.
2. HARTFORD — Connecticut's two federally recognized tribes have received long-awaited approval from the federal government to push ahead with plans for an off-reservation casino in East Windsor.
3. Connecticut lawmakers approved a third Indian casino Wednesday to fend off new competition in Massachusetts from MGM Resorts International. The legislation allows the two Connecticut tribes who.

The Connecticut House joined the Senate last week in approving a third, satellite tribal casino. The bill awaits the signature of Governor Dannel P. Malloy. MGM Resorts International is likely to challenge the new law in U.S. District Court. The vote came less than 24 hours before a June 7 deadline.

The vote was a dramatic last minute save of a bill that two weeks ago seemed on the verge of defeat, despite having passed the Senate. It was a bipartisan vote for one of the most controversial issues Connecticut lawmakers dealt with in the last two years.

Connecticut moved a step closer to getting its third casino with Governor Dannel Malloy signing legislation permitting the joint venture project between the state’s two gaming tribes to go ahead. The state’s current casino operators, Mashantucket Pequot Tribal Nation, owners of Foxwoods and the Mohegan Tribe, owners of Mohegan Sun, have. Hartford, East Hartford, Windsor Locks and East Windsor are competing to host the joint casino venture between the Mohegan Tribe and the Mashantucket Pequot Tribal Nation. Skittish about losing.

The vote was 103-46 in favor of the bill that allows the state’s gaming tribes, the Mohegan and Pequot tribes, through their joint powers authority, MMCT Ventures, to build a casino in East Windsor, near the Massachusetts/Connecticut state line with the publically stated goal of blunting the effects on Indian gaming of the $950 million MGM Springfield 14 miles away—which is due to open in the fall of 2018.

The Mohegan Tribe operates the Mohegan Sun casino and the Mashantucket Pequot Tribe owns and operates Foxwoods Resort Casino—Both on reservation land.

MMCT proposes a $300 million, 200,000 square-foot casino with 2,000 slots and up to 150 gaming tables, without a hotel.

MGM is likely to file a complaint in federal court asserting that the bill violates the U.S. Constitution’s Equal Protection Clause because it gives the sole authority to develop the third casino to the tribes without a bidding process—a process that MGM says it would like to participate in.

“That’s not a threat. That’s a promise,” said Uri Clinton, a senior vice president and legal counsel with MGM, of the legal challenge. He added, “This is about people in the House thinking that they are going to get the benefit of a bargain that will never materialize.”

House Majority Leader Matthew Ritter said, “It’s hard to predict what their claims are going to be and then what the defenses are going to be. But we acknowledge that someone is going to sue. We don’t know who or for what reason, but they will.”

After the vote House Speaker Joe Aresimowicz declared, “there was a lot of workers out in the hall for the past couple of months talking about their ability to provide for their families. We have to focus on jobs and the bill we did last night, that’s why I supported it, was the one bill that really focused on jobs particularly in Eastern Connecticut.”

Rep. Chris Davis, whose district includes East Windsor, dug in his heels against attempts to spread out the gaming expansion over a series of smaller casinos in Bridgeport, New Haven and Waterbury, including a “boutique” casino in Hartford.

“I think the only one that makes sense to me, public-policy wise, is in East Windsor or a facility in that area. It would ultimately, potentially, save revenue from going up to Springfield and protect those jobs,” he said. “The idea of them spreading it out to four of five more places, I think is a true public policy question for most people. It opens up gaming across the state.”

MGM already has a case in federal court, one that was dismissed by a judge but is now on appeal. However, the new bill makes a new case likely.

Attorney General George Jepsen has previously warned that such a bill was vulnerable to challenge. Promising to defend it, he said last week, “This is a new territory and so I’m not here to make any predictions but we do believe that we have very straight-faced arguments to make.”

The two tribes argue that MGM hasn’t been able to prove that it even has standing in the case—partially because MGM’s non-compete agreement with the city of Springfield prevents it from operating a casino within 50 miles of that city. East Windsor, a community with a population of about 12,000, is 14-miles from Springfield. The proposed casino would be near Interstate-91 in a now closed Showcase Cinemas complex.

Also threatening legal action against the bill is the Schaghticoke tribe, which does not have federal recognition but insists it should be allowed to build a casino anyway. It has supported MGM’s proposal to build a casino near Bridgeport to tap the New York market.

The bill also increased the number of allowed Off Track Betting parlors to 24, which means eight more licenses for Sportech Venues. An added sweetener that brought onboard other representatives was the creation of a new entertainment sharing agreement between the tribes and concert arenas that have 5,000 seats or more. An additional provision would create a framework for possible sports betting if the federal government legalizes it. Another addition was the legalization of mixed martial arts matches on non-tribal land.

One provision that was not added was licensing fees for the casino, even though it will be located on non-tribal land. However, the bill does require that non-gaming service vendors providing more than $25,000 a year in services buy a $250 license annually while gaming services vendors will pay $500 a year.

Ted Taylor, president of Sportech Venues, greeted the increase of OTB licenses: “With 400 employees at 16 locations across the state, including those in the cities being discussed, Sportech has consistently and repeatedly stated that Connecticut must address the impact that MGM Springfield will have on our employees and the revenue we generate for Connecticut.”

Governor Malloy is thought likely to sign the bill. The governor has not called for a third casino, but said he preferred that such a casino be operated by the two gaming tribes, rather than a commercial casino.

He issued a statement after the vote: “I commend and thank both chambers of the General Assembly for keeping Connecticut jobs and workers at the center of this debate. Our state has a longstanding partnership and compact with the Mohegan and Mashantucket Pequot tribal nations, who employ thousands of Connecticut residents in their casinos. I have been very clear that I will not sign a bill that puts these jobs at risk, and I look forward to reviewing this proposal.”

After the vote Mohegan Tribal Chairman Kevin Brown said families of the two tribal casinos were “breathing a sigh of relief,” at the passage of the bill. The Mohegans and the Pequots have released studies that concluded that the state could lose millions of jobs in revenues—one estimate is $68 million annually—and thousands of jobs when the MGM Springfield opens—and that some of that damage could be staunched by a border casino.

This year the tribes are expected to pay $266 million to the state; they pay 25 percent of its gross slots revenues in return for exclusive rights to casino gaming. The tribes have paid a total of $7 billion since 1993. The highest year for payments was 2007, when the state collected $430 million.

Under the new bill the tribes would pay no licensing fee, but would pay 25 percent of gaming revenue. The first $4.5 millions of slots revenue would be given out in individual $750,000 grants to the towns of Hartford, East Hartford, Ellington, Enfield, South Windsor and Windsor Locks.

The latter provision was added instead of an alternative that would have allowed slot machines at existing off-track betting parlors such as “SportsHaven” in New Haven and “Winners Shoreline Star” in Bridgeport. A provision that would have allowed a boutique casino in Hartford was dropped.

Pequot Chairman Rodney Butler added, “Tonight the Connecticut General Assembly passed one of the most significant jobs initiatives of the legislative session. With more than 9,000 jobs at risk, legislators banded together to save an important sector of Connecticut’s economy.”

“With this vote, we have all demonstrated a commitment to protecting the state of Connecticut and the good jobs of its residents,” Brown said.

Some lawmakers, such as Rep. Joe Verrengia, chairman of the Public Safety Committee, did not favor granting the tribes exclusive rights to the third casino. He predicted legal challenges and said the state could lose as much as $100 million from licensing fees by not opening the casino up to bidding.

Rep. Chris Rosario of Bridgeport was disappointed that Bridgeport was not included as a site for a casino. Rosario, who is chairman of the Black and Puerto Rican caucus, told Yogonet, “We’re looking for jobs for the people of our communities. Quite often here in this building there are a lot of proposals and it seems like the inner cities are kind of left out of the conversation.”

One reason the casino bill was so controversial is that Connecticut lawmakers are wrestling to find new ways to fund a $40 billion budget that is facing a $5 billion deficit over the next two years.

The governor commented, “This is probably a more difficult year because, let’s be honest, a lot of the easier stuff to do with the budget has already been done. So, I can see people are having difficulties in coming to grips with the hard decisions that have to be made.”

Meanwhile, in the face of expanding gaming in the state, the Connecticut Council on Problem Gambling called on the state to devote more resources to assist those who are vulnerable to the blandishments of gaming.

Marlene Warner of the Council, writing in the Hartford Courant, declared “Connecticut may be poised to enter a new gambling frontier, one that requires better safeguards for the state’s most vulnerable populations,” including collecting anonymous player data, providing players with records of their individual gaming history, and providing guidelines for limiting the amount of money that can be gambled away over a specific period.

Connecticut state officials and the state’s two gaming tribes are not taking no for an answer when it comes to the Department of the Interior Department’s refusal to act on the amended state tribal gaming compacts that were penned last year and forwarded to the department for its approval.

The approval is needed for the tribes to begin building their East Windsor casino that will, they hope, provide some defense against the effects of the $960 million MGM Springfield against their two casinos when it opens this fall. The tribes, the Mohegans and Mashantucket Pequots, operate the Mohegan Sun and Foxwoods Resort Casino. Once fierce rivals, they have joined forces to form the joint authority MMCT to operate a third, satellite casino. But the refusal of the Interior Department to issue a ruling on the amended compact has frozen them in place—all the while that the MGM Springfield marches inexorably forward.

The acceptance of the amendments was a requirement of the legislation that authorized the third casino. That requirement was included because of the exclusivity clause of the compacts, which guarantees that the tribes will have a monopoly on gaming in the state, in exchange for paying the state 25 percent of their gaming profits.

So far, the state and tribes have gone to court to try to shake the action loose from the department. But last week several Connecticut members of Congress called on the department’s Office of Inspector General to look into the matter. U.S. Senators Richard Blumenthal and Chris Murphy and Reps. John Larson and Joe Courtney, sent a letter to the Inspector General requesting the probe.

In their letter they wrote, “This decision raises serious questions as to whether the Department of the Interior is properly carrying out its longstanding legal trust responsibilities regarding Native American Tribes.”

Although the state and the tribes forged new compacts last year, the Interior Department did not act within the 45 days required by the Indian Gaming Regulatory Act (IGRA) or so the tribes and the state contend.

The members of Congress imply that the department was improperly influenced by lobbying from MGM International and elected officials from Nevada, while refusing to see representatives from Connecticut.

They point to a February 1 article that appeared in Politico that documented that Interior Secretary Ryan Zinke and other department officials met with MGM lobbyists and members of Congress pushing for MGM.

“Specifically, the Politico article raised issues of potential conflicts of interest and impartial decision making, noting that the secretary refused to even talk with members of the Connecticut delegation about these Connecticut-specific amendments while ‘MGM and its allies had direct access to Interior,” says the letter.

MGM has fought the third, satellite casino in the courts and in the halls of the Connecticut legislature, seeing it as a direct threat to its Springfield casino. However, even if MGM can’t stop the casino, delaying it until after the Springfield casino opens might be an effective strategy.

Says the letter, “The Nevada-based MGM has a direct economic interest regarding Interior’s decision on the proposed amendments, as the casino that is the subject of the amendment could potentially compete with its newly constructed casino on the Connecticut-Massachusetts border. However, MGM has no connection to the legal trust responsibility Interior has to the Mohegan and Mashantucket Pequot Tribes. As such, the company’s activities should have had no bearing on the question before the department or on its decision regarding the proposed amendments.”

The department’s Acting Assistant Secretary for Indian Affairs, Michael S. Black in September sent a letter to Connecticut Attorney General George Jepsen indicating that the department didn’t have enough “information upon which to make a decision as to whether a new casino operated by the Mohegan and Mashantucket Pequot Tribes would or would not violate the exclusivity clauses of the gaming procedures.”

This, despite the fact that months earlier another official from the department had sent a letter stating that the department was likely to approve of the amended compact.

This prompted the tribes and the state to file a lawsuit in November to try to force a decision.

MGM’s spokesman Uri Clinton, who is also the legal counsel for the company, issued a statement responding to the call for a probe: “There is litigation already underway which will ultimately determine matters in the public interest that the proposed federal review seeks to address,” adding, “A federal court will resolve these issues in due course.”

If the tribes are ever allowed to open their $300 million East Windsor Casino, at least they know approximately what it will look like.

MMCT, the joint tribal authority, last week submitted tentative drawings, sketches really, to the city of East Windsor’s planning and regulatory boards, indicating a one-story facility with a five-story, 1,800 space parking structure at the 26-acre site of the defunct casino, which will be demolished beginning February 28. MMCT paid $4 million for the property.

A more polished vision of the casino will likely be forthcoming soon now that the tribes have hired JCJ Architecture of Hartford; and California-based Tutor Perini Building Corp., construction manager Bertino & Associates, and for marketing: Cronin of Glastonbury.

There is so far no timetable for the actual construction. A town official admitted that the tribes are behind schedule. “Would we have liked to see the demolition in October or November?” the official told the Hartford Courant. “Sure. But they are not that far behind.”

MMCT spokesman Andrew Doba commented last week, “We’re making progress and look forward to continue working with our partners locally and in state government in the fight to save jobs and revenue.”

Meanwhile, MGM has ramped up its efforts to compete with the tribes in their own backyard by intensifying its campaign for a $675 million casino in Bridgeport’s East End on waterfront property that was once a steel plant.

Robert Christoph Sr., president of RCI Group, which is developing that site, told CT Post: “As property densifies and more activities are there, certainly more people will come to use that area of the city, as well as be able to need other services that hopefully other parts of the community will be able to provide.”

Elizabeth Torres, president and chief executive officer of Bridgeport Neighborhood Trust, who was also interviewed by the Post, “I think that for a long time the East End of Bridgeport was forgotten, and that’s changing.” Torres is a supporter of a Bridgeport casino because of the collateral effects it would have of generating new business.

Labor unions have jumped on board the Bridgeport casino band wagon.

February 6, the union Unite Here held a rally at the First & Summerfield Church in Bridgeport attended by three mayors, four state lawmakers, a candidate for governor, several aldermen and about 85 union workers from MGM casinos who talked about jobs creation.

MGM has committed to building a workforce development center in the state capitol, where 2,000 employees could be trained.

New Haven Mayor Toni Harp spoke of the agreement her town has with MGM to work for the Bridgeport casino in return for jobs generated in her town. MGM claims that the Bridgeport casino would generate 7,000 jobs.

Unite Here Local 35 president Bob Proto said he had struck an agreement with MGM to not interfere with the union organizing workers if a Bridgeport casino is built.

The CT Mirror quoted Proto: “This state needs new ideas, and now, a private investor wants to come in, who won’t put a burden on taxpayers. But we have some folks that are cynical and narrow-minded in this state. Ask the folks in this region, in Bridgeport, if they want a good job with benefits. Because if you go against this project, you’re going against opportunity. And the fact is we’re not going to let that happen.”

Rep. Toni Walker two weeks ago introduced a bill that would repeal the state’s authorization of the commercial casino run by MMCT and replace it a competitive bidding process for a casino in the state that would be open not only to the tribes, but also to MGM International.

Pointing to the delays that MGM’s lobbying of the Interior Department has created, Walker said that the state’s financial condition makes it necessary to act now.

“It could take years, and we don’t have years,” said Walker. “We need to get these jobs and training. We need to move forward and allow other business.”

Following the introduction of Walker’s bill, MGM’s Uri Clinton issued a statement: “MGM favors an open bidding process, so it can win business away from a competitor. The legislative proposal announced today mirrors industry best practices by establishing a truly competitive, open and transparent process,” adding, “That’s really all MGM has asked for from day one: a fair chance to compete for Connecticut’s first commercial casino license rather than seeking an exclusive no-bid hand-out.”

He added “We look forward to pursuing this opportunity as soon as the bill passes. We are fully prepared to present a compelling proposal that will create thousands of jobs, boost the state’s economy and drive tourism, offer significant opportunities for local businesses, and provide substantial revenue to the state and its municipalities. And we continue to believe that Bridgeport is the best location for a commercial casino … to achieve all of these objectives.”

The schools chief in Bridgeport, Supt. Aresta Johnson, says he want his school board to be part of the conversation.

“Other stakeholders across the city have met and been involved and engaged in this conversation,” she said. “But the board has yet to come to the table and say ‘What are you going to do for our kids?’ ” The school board says it routinely ends up losing from state and city education funding.

Without the bill, MGM is left with a proposal for a casino but no legislative foundation for getting one approved by the state.

Opponents of the MGM proposal point to the longstanding relationship between the tribes and the state, a relationship that last year paid the state $264 million, although that’s compared to $430 million that the tribes paid ten years ago.

MMCT’s Andrew Doba declared, “Let’s call this bill what it is: the MGM Massachusetts Protection Act. A bill that will cost Connecticut $1 billion in revenue and eliminate 4,000 jobs was a bad idea last year, and is still a bad idea.”

The bill would require that any proposal commit to employing at least 2,000 and investing at least $500 million. It would have a non-refundable $50 million licensing fee. The casino would pay 25 percent of the gross to the state and set aside an additional 10 percent of slots revenue for educational grants.

Third Casino In Ct Reopen

The co-sponsor, Chris Rosario told the Courant, “The process will let every developer with an interest — whether it is MGM or the tribes or anyone else — give it their best shot. It is a process that is consistent with industry best practices, and it’s best for Connecticut.”

Third Casino In Ct Opening

While not attacking the new bill, Governor Dannel P. Malloy’s office said that he wanted to focus on creating and keeping jobs and opposes violating the existing compacts with the tribes.

Third Casino In Ct Locations

Several key legislators who helped shepherd last year’s tribal bill have stepped up to criticize the bill.

“If this proposal proceeds—which I doubt it will—I will vehemently oppose it,” declared state Senator Cathy Osten. “Connecticut is already on track to open a new tribal casino in East Windsor that will protect existing casino jobs in the state and grow new jobs, which will help our economy, and that progress shouldn’t be derailed.”

Third Casino In Ct Closed

The state-tribal relationship dates back to the 1990s.

Third Casino In Ct

The Mohegans were once in the same position as MGM, but in reverse. They competed in Massachusetts for the right to build a casino in the Boston Metro area and in Western Massachusetts. They lost out to Wynn Resorts for the Boston zone, and have been in court challenging that result ever since, claiming that “the deck was stacked from the start.”

Third Case In Ct

The forced resignation of Steve Wynn as chief executive officer and president of Wynn Resorts, has produced a new breeze to fill their sails since the sexual harassment settlement Wynn made to a former employee was never revealed to the Massachusetts Gaming Commission when it was considering Wynn’s bid.