New bill would scuttle casino project
Officials confirm work set to begin today pushed back
With demolition work at the site of the third Connecticut casino about to begin, a bill surfaced in the state legislature Tuesday that would repeal authorization for the project.
Introduced by the Public Safety and Security Committee, the bill seeks to establish an application process for entities interested in developing “a possible casino gaming facility in the state.” It would require state officials “to develop and issue a request for proposals” and “repeal the authority of MMCT Venture, LLC,” the Mashantucket Pequot-Mohegan partnership intent on building a casino on nontribal land in East Windsor.
“Make no mistake about it, this bill is going to cost thousands of people their jobs and the state hundreds of millions in revenue,” said Andrew Doba, a spokesman for MMCT.
The Mashantuckets and the Mohegans, respective owners of Foxwoods Resort Casino and Mohegan Sun, are pursuing the $300 million project in East Windsor to protect their existing casinos from the impact of MGM Springfield, the nearly $1 billion resort casino under construction in Massachusetts.
MGM Springfield is targeting a September opening.
MMCT officials confirmed Tuesday that demolition work that had been expected to start today has been pushed back. The site, off Exit 45 of Interstate 91, is occupied by a vacant Showcase Cinemas building that must be razed before construction can begin. The $300 million project was authorized last year by legislation passed by the General Assembly and signed into law by Gov. Dannel P. Malloy.
In the first sign of activity at the site, signs have been erected in the last couple of days touting the tribes’ contributions to the state. The signs read: “Two tribes working together ... the RIGHT partnership for Connecticut” and “26 years. 20,000 jobs. $7,000,000,000.”
The $7 billion figure refers to the slot-machine revenues Foxwoods and Mohegan Sun have pumped into Connecticut’s coffers since the casinos opened.
East Windsor First Selectman Robert Maynard said the town has yet to issue a permit for the demolition work.
Opponents of the East Windsor project, a group that includes lawmakers from the Bridgeport and New Haven areas and MGM Resorts International, the Las Vegas-based operator behind the Springfield project, have advocated for the selection of a third-casino operator through competitive bidding. Such a process, they say, likely would lead to a casino in Bridgeport rather than East Windsor.
MGM Resorts has proposed a Bridgeport casino, which would require legislative approval. Union workers rallied Tuesday night in Bridgeport in support of the plan.
The new legislative proposal only seeks to qualify a would-be casino developer and does not actually authorize a casino. That would require further legislation. The bill calls for bidders to agree to make a $500 million investment in a proposed casino and demonstrate an ability to pay a one-time licensing fee of at least $50 million. Applications would have to be accompanied by a $5 million fee that would be refunded in the case of rejected applications.
MMCT’s agreement with East Windsor calls for the tribes to make a $3 million payment to the town 15 months before the casino opens. Thereafter, the tribes would pay the town $3 million a year to mitigate the casino’s impact on local services and an estimated $5.5 million a year in property taxes. Twenty-five percent of the gaming revenue the casino generates would go to the state.
Maynard said the tribes would have to obtain a building permit from the town before starting construction. That will require the filing of detailed plans that the town will submit to a consultant for review, he said. At that point, a construction schedule would be determined.
“I think it’s going to take them at least 20 months to build it,” Maynard said.
Committee. “We wanted to give legislators on the committee a sense of what’s happening from a national perspective.”
In addition to casino expansion, the committee is expected to consider the legalization of sports betting and daily fantasy sports play, activities that could be expected to generate significant tax revenue.
Wagering on college and professional sports, activity that has been banned in most states, could be legalized on a state-by-state basis if the U.S. Supreme Court strikes down the Professional and Amateur Sports Protection Act of 1992, which it is expected to do. The court heard arguments in New Jersey’s challenge of the law in December.
“As we anticipate gaming bills, it’s important that Connecticut remain ahead of the curve,” Verrengia said. “I go in with an open mind.”