With Zinke out, Blumenthal backs casino
Senator wants Interior secretary’s successor to pave way for East Windsor facility
Sen. Richard Blumenthal on Monday called on the successor to U.S. Department of Interior Secretary Ryan Zinke to swiftly approve changes to the state of Connecticut’s revenue-sharing compact with the tribal owners of Foxwoods Resort Casino to help clear the way for a casino in East Windsor.
“The decision about about the compact was legally, completely misguided and wrongheaded,” Blumenthal said. “It ought to be a new day for the new casino and this tribal initiative.”
Blumenthal and three other members of Connecticut’s congressional delegation — Sen. Chris Murphy and Reps. John Larson and Joe Courtney — were successful in pushing for an investigation of the matter by Interior’s Office of the Inspector General. On Monday, the inspector general said the probe is ongoing and active.
Zinke, who resigned Saturday, is the target of multiple probes. The one affecting casino expansion in Connecticut involved his handling of requests to approve changes to slot machine revenue-sharing agreements with the Mohegan and
Mashantucket Pequot tribes.
When state lawmakers approved a proposal to establish a casino in East Windsor to be jointly run by the tribes, they required Interior approve changes to revenue-sharing agreements with the state of Connecticut.
The lawmakers wanted to ensure that the state’s monthly cut of slot revenue wouldn’t be endangered if the tribes teamed up on the casino to compete with MGM Resorts International’s new gambling and entertainment complex in Springfield.
In April, Politico reported that “career staffers were circulating what they labeled ‘approval letters’ just 48 hours before their political bosses reversed course” and refused to either approve or reject the amendments.
The political maneuvering also raised questions about intensive lobbying at Interior by MGM, an issue raised by the Connecticut congressional delegation. They also complained they had no access to Interior or Zinke, but MGM and federal lawmakers from Nevada did.
A month after Politico’s report, Interior — the federal Indian gaming regulator — approved changes for the Mohegan tribe, but an approval for the Mashantucket Pequots did not follow, as the tribes predicted it would. The tribes repeatedly have said they will not move forward without Interior’s backing, even though they had demolished an abandoned movie theater in East Windsor in preparation.
MMCT Venture, the joint venture of the Mohegans and Mashantucket Pequots, did not have a comment Monday.
Last week, state Sen. Cathy Osten, a Sprague Democrat and strong supporter of tribes, took the lead on pushing a new bill that would remove the requirement for federal approval. The bill had support from both Democrats and Republicans.
“I did say, and continue to say, the Interior Secretary was the main divider on this issue after he called MGM and the legislators from Nevada,” Osten said. But she added that the Connecticut legislature still must remove Interior’s approval from the casino expansion legislation, signed into law by Gov. Dannel P. Malloy in 2017.
“Connecticut must move forward to protect its interests,” Osten said.
Supporters of the expansion say the East Windsor casino will help preserve jobs tied to the gambling industry and the state’s 25 percent cut of slot revenue from Mohegan Sun and Foxwoods. For the casinos, the East Windsor venue in the face of competition from MGM Springfield is a defensive play to protect its gaming turf.
A reversal by Interior does not guarantee that construction will necessarily begin, however. MGM has vowed to continue fighting the expansion in the courts on constitutional grounds and in the legislature where it has already argued that the state should open up bidding to all prospective casino operators and not just going to the tribes.
A federal judge ruled in September that the state and the tribes cannot legally force Interior to approve changes to the compacts. Connecticut Attorney General George Jepsen has urged caution in moving forward on tribal casino expansion. On Monday, a Jepsen spokeswoman declined to comment.
Both Foxwoods and Mohegan Sun last week announced another decline in November in slot revenue it kept after paying out prizes, the fifth month in a row of year-over-year declines.
On Monday, the state gaming commission in Massachusetts said MGM kept $13.4 million in slot revenue, but that was less than $14.6 million in October and $18.1 million in September.
Although it may be six months to a year until trends in gambler preference on location clearly emerge, some experts say a majority of gamblers may choose to visit all locations — MGM, Mohegan Sun and Foxwoods — spreading their gambling dollar around.