Connecticut Preparing to License 3 Satellite Casinos for Mohegan and Foxwoods Tribes

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Bob Duff Said Massachusetts Had Declared “Economic Warfare” on Connecticut

Connecticut lawmakers, tribal gaming executives, and union leaders are joining forces to support a new casino licensing initiative in the state. The coalition of gaming proponents are backing a bill which would create 3 “satellite” casinos. The intention of the bill is to keep jobs and gaming revenue in the money by creating a firewall of smaller casinos along the borders of the state.

Senate Majority Leader Bob Duff, D-Norwalk, summed up the sentiments of his state’s leaders. Duff said, “Massachusetts has declared economic war on us, and we’re going to fight back.

Why Have Satellite Casinos?

The plan began as a decision to open at least one satellite facility along the Interstate 91 corridor on the border between Connecticut and Massachusetts. The idea is to build a casino that would keep Connecticut gamblers from visiting the $600 million MGM Resorts casino set to be built in Springfield, Massachusetts. The Springfield casino is expected to open in 2017. Given its location, the MGM Casino Springfield is likely to take customers from Foxwoods Casino and Mohegan Sun, the two massive gaming facilities in Connecticut.

Many Connecticut residents in the northern part of the state will live closer to the MGM gaming facility than the in-state tribal casinos. Naturally enough, if confronted with a shorter trip to a newer casino, those gamblers might be expected to frequent the Springfield venue, despite it being out-of-state.

A smaller casino along the border of the state might “catch” a number of those bettors before they leave the state. Not only would it keep tax revenues and gaming profits from leaving the state, but it might help maintain jobs in Connecticut. Under those circumstances, it makes sense for state legislators to approve licenses for smaller gaming locations.

Interstate 91 Casino

Though the idea originally involved only one casino along Interstate 91, proponents soon suggested that Rhode Island and New York are likely to build casinos to steal gamblers from Connecticut. Supporters of the I-91 corridor casino therefore suggested gaming facilities along the borders with Rhode Island and New York state, effectively creating firewalls to keep gamblers in the state.

One novel feature of the proposal is the fact the Mashantucket Pequot and Mohegan tribes would collaborate on the project. The owners of Foxwoods Casino and Mohegan Sun, longtime rivals in the state, would effectively co-own the facilities. As one pundit ironically quipped, the tribal gaming interests of the state would be circling the wagons to protect their revenue base.

Sen. Osten Wants to Save Jobs

Democratic State Senator Catherine Osten, whose district contains the Foxwoods Resort and Mohegan Sun Casinos, is supporting the bill in the Connecticut state legislature. Sen. Osten said at a press conference on Monday, “We will not stand aside and let other states–New York, Massachusetts or Rhode Island–take jobs away from Connecticut.”

Possible Locations along I-95 and I-84

Charles F. Bunnell, the Chief of Staff for External Affairs for the Mohegan Tribe, told the Hartford Courant that Connecticut hopes to build smaller gambling sites along the I-95 and I-84 interstates, too.

At the remote locations, the tribes would provide incentives to customers to visit their tribes’ primary locations. The Mohegan Tribe believes the smaller casinos should combine a poker room with 50 to 75 table games and between 1800 and 2000 slot machines. Mitchell Grossinger Etess the CEO of the Mohegan Tribe Gaming Authority, gave those details in a recent interview. Etess also said he expects limited food and beverage selections at the satellite venues, too.

Locations to Be Determined by Tribes

State Sen. Tim Larson, a Democrat from East Hartford, said “the market” would determine locations. That means the Mohegan and Mashantucket Pequot tribes apparently will have the right to place small casinos in 3 remote Connecticut communities. The economic impact of those casinos in terms of jobs and tax revenues could be significant for the surrounding areas.

Sen. Larson said, “We know that the [I-]91 corridor is of interest to them right now, but they’re also feeling some pressure from the New York area. So, without targeting a specific town, we thought three was appropriate.