Governor Malloy said he hopes to “focus” the legislature on passing the $260 million-a-year bill.
Connecticut Gov. Dannel P. Malloy said on Friday that the state’s only realistic option is to approve the tribes’ casino plan. Gov. Malloy referred to a joint venture by the Mohegan Tribe and Mashantucket Pequot (Foxwoods) Tribe to place a casino in East Windsor, a suburb of Hartford.
Malloy said the only measure he would sign into law is the East Windsor proposal. The plan is to give the tribes, which respectively own the Mohegan Sun and Foxwoods Casino, a chance to compete against the upcoming MGM Springfield 30 miles away in Western Massachusetts.
Why Build an East Windsor Casino?
When the MGM Springfield opens in 2019, the billion-dollar casino-resort is going to be a centerpiece of Springfield’s urban rewewal. Not only will the MGM Springfield sit at the heart of a real estate and business development area, but MGM Resorts International agreed to be a patron of the local arts and culture.
Worse for the Mohegan and Mashantucket Pequot tribes, the MGM Springfield is going to be much closer to the Hartford metropolitan area than Foxwoods Casino and Mohegan Sun, which are located in the southeastern portion of Connecticut. Thus, the Connecticut legislature approved a plan to build a satellite casino in Hartford, to keep local gamblers playing in-state. The longtime rival tribes would operate the casino as a joint venture.
Why Not Have Other Casino License Applicants?
The alternative some residents of the Hartford area have pushed is to open the licensing process to more than the tribal interests. Those residents believe the Hartford area would receive better deals if competition was introduced into the licensing process. Other suburbs besides East Windsor would receive an equal chance at a casino, it goes without saying.
Dannel Malloy made his thoughts known in an interview this week with CT Mirror. In the interview, Gov. Malloy said he is neutral on the prospect of having a third casino in the state. He supports retaining the exclusivity arrangement with the Connecticut tribes, which has been lucrative for the Connecticut Treasury Department.
$7 Billion in State Revenues
Since the tribal casinos first began operating in 1993, they have contributed $7 billion to the state treasury. In the early days, Foxwoods and Mohegan Sun drew gamblers from New York City, Boston, and the entire New England region. As New York State, Massachusetts, and Rhode Island developed their own domestic casino gaming industries, the prospects for the Connecticut tribal casinos have dimmed.
These days, the state is trying to maintain the economic viability of the Mohegan Tribal Authority and Mashantucket Tribal Authority. Both are struggling to maintain their market share while dealing with debt burden from renovations and expansions just prior to the Global Recession. Both owe more than $2 billion apiece in debt.
The East Windsor casino is expected to generate $260 million in revenues per year. That should help the tribes, while keeping gambling cash within the state. Gov. Malloy suggests that the deal is the best one for Connecticut, its business interests, and its people. For that reason, he wants to push the approval process in the direction of the tribes, so the legislature and Hartford-area residents will stop their bickering.
Dannel Malloy’s CT Mirror Interview
In his CT Mirror interview, Gov. Dannel Malloy said, “I’m not pushing it, or pushing against it. But I always believe you should have a realistic discussion about realistic outcomes, and it’s not realistic to put $260 million or more at risk.”
Malloy Is Focusing the Legislature
The Connecticut governor added, “If I can help the legislature focus, it’s do you want to work with the two tribal nations that employ thousands and thousands of people in our state?
“If that’s what you’re trying to do to help secure those jobs and that base, then there is one road to go down. I will not sign a transaction or bill that puts into real danger our existing arrangement with the tribal nations, nor would anyone in this building who thought about it. And I’m not sure we’ve had that clear, crisp discussion.”
With only one option to build a casino, the legislature is likely to pass the Mohegan/Foxwoods casino plan for East Windsor. Most lawmakers in the joint committee created to explore the idea seemed to lean towards the East Windsor proposal, though few wanted to step out and directly contradict the wishes of voters in the Hartford area. Thus, Governor Malloy’s dictat might give lawmakers on both sides of the aisle cover to do what they preferred to do anyway.
