Third Casino In Connecticut
- Third Casino In Connecticut Going
- Third Casino In Connecticut Near
- Third Casino In Connecticut Opening
- Third Casino In Connecticut Open
EAST WINDSOR - The Mashantucket Pequot and Mohegan tribes are proposing a third casino to the state of Connecticut and East Windsor is listed as a potential destination. 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.
It was a battle of dueling economic reports before the state legislature Thursday as lawmakers considered whether to commission yet another study on the impact of a potential third casino.
The Commerce Committee held a public hearing on a bill that would require them to seek more data before moving forward with plans for a casino in north-central Connecticut.
Third Casino In Connecticut Going
But several reports have already been produced: two by the tribal partnership backing the casino, and one, revealed last week, but MGM Resorts, which is building a casino in Springfield.
Third Casino In Connecticut Near
Through the first 4+ months of this year, the prospect of a 3rd casino in the state of Connecticut has been a story we have been following closely. The most recent development in this situation came early this week when the Native tribes from the state received word that their casino plans were approved by an important government committee.
MGM’s study, compiled by Oxford Economics, said the best economic impact for Connecticut would come from building a casino in the Bridgeport area.
The partnership between the Mashantucket Pequot Tribe and the Mohegan Tribe, called MMCT, is working with the state to develop the project. It prefers to site in north-central Connecticut, as a way to draw customers away from the Springfield facility.
The partnership's reports were produced by Dr. Clyde Barrow of the University of Texas. He gave evidence to the committee, telling him the studies are not comparable.
'We have real data about where customers come from in Connecticut and how much they spend,' Barrow said. 'That's data that Oxford Economics doesn't have access to, and as a result their analysis, I would claim, is really purely speculative.'
Barrow also said the two are based on completely different scenarios. The tribal partnership is proposing a $300 million facility.
The data for Oxford's recommended outcome, a Bridgeport-area casino, is based on a $1.1 billion facility.
'They're essentially talking about replicating Mohegan Sun, an analysis based on an assumption that's four times bigger than what's being proposed,' Barrow said.
But not everyone agreed that there’s enough information already out there.
Fred Carstensen, an economist at UConn is in favor of a new study. He said that while he recognizes the positive impact the existing casinos have had on the state's economy, he has grave concerns about the third casino plan.
'We have not had any kind of an exhaustive study,' he said. 'We don't know what the implications are. My bottom line is that I actually think that the small casino idea not only may fail, in terms of either job preservation or revenues to the state, it may in fact become a zombie.'
By which he means it will end up cannibalizing revenues from the two existing casinos, while the state continues to lose gaming customers to facilities in Massachusetts.
Some lawmakers questioned the potential social costs of expanded gaming in Connecticut, noting that the existing studies commissioned by the gaming giants don't touch on what the state may have to spend to mitigate problem gambling, crime and other issues.
MGM is also in favor of more study of the Connecticut proposal, despite having commissioned its own report. The gaming company has filed a lawsuit against the state, claiming it should open the potential casino development to outside bids.
MGM has also backed a second lawsuit by the Schaghticoke Tribe in Kent, who would also like to be allowed to bid.
Executive Vice President Alan Feldman told the committee, 'Connecticut jobs absolutely matter. It is in no-one's interest to see that harmed. But there is a process in place that doesn't allow us to participate. It happens to be that we think Connecticut is a terrific market. The state needs to have its own perspective, not necessarily just what MGM thinks or what MMCT thinks.'
A wide range of casino employees, small businesses and local legislators gave testimony in support of the Connecticut tribes' position, opposing any new study.
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.
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.”
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.
Third Casino In Connecticut Opening
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.
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.