The Middletown Press (Middletown, CT)
Gambling bill would bring $88M to cities and towns
HARTFORD — The latest attempt to solve the stalemate in the state’s gambling landscape was unveiled Wednesday and includes a new Bridgeport casino and more state revenue from the tribal nations that operate the existing casinos.
The result: an extra $88 million for towns and cities to share.
But the proposal, announced by state Sen. Cathy Osten in a rare bipartisan news conference, who will submit the legislation when the General Assembly convenes next week for its short session, hinges on Gov. Ned Lamont’s ability to renegotiate the current compact with the Mohegan and Mashantucket Pequot tribal nations.
Under the proposal, in addition to the current revenue for the state from 25 percent of the amount currently wagered on slot machines, 10 percent of all table game bets would be channeled to the state’s tourism programs.
In exchange, the tribes would gain exclusive rights to future sports betting, both online and inside casinos. The tribes would also be allowed to serve alcohol two hours beyond the current 2 a.m. curfew.
Osten, D-Sprague, said the overall strategy is to lower property tax rates throughout the state and especially in high-tax cities such as Bridgeport, where she has worked with local leaders on the bill since June. Currently, towns and cities get about $51 million a year from casino revenue, which would increase to $139 million if the legislation is approved by the House and Senate and is signed into law.
Bridgeport would get an additional $5.5 million, while East Windsor, the planned location of a third casino jointly operated by the two tribes, would receive $9 million, as would the towns of the eastern Connecticut region around the existing resort casinos.
Under the 41-page draft, Lamont would have until October 1 to reach an agreement recrafting the nearly 30-year-old compact, which has generated $9 billion for the state. The tribal casinos are some of the state’s largest employers.
“This is about jobs,”
Osten said. “This is about revenue, and this is about protecting our municipalities.”
The legislation would create entertainment zones in Hartford, New Haven and other locations.
Lamont has the power to re-negotiate the terms of the compact with the tribes. But talks have mostly stagnated over the last year amid legal tangles over a planned joint-tribal casino along the Interstate-91 corridor in East Windsor that was an attempt to compete with the $960 million MGM Springfield casino.
The tribes have been unwilling to share sports and online betting with other companies including Sportech, which runs the Off-Track Betting locations in the state, and the Lottery Corp.
“This issue in particular we know is a difficult one,” said Senate President Pro Tempore Martin M. Looney of New Haven. “It’s complex because it contains so many different components that have to be negotiated and reconciled in order to move this forward.”
Sports betting, Internet lottery games and other sources of revenue are being lost if the state cannot establish a path toward those opportunities, he said. “A sense of urgency is absolutely necessary in that.”
Lamont’s office said Wednesday that the governor shares the goal of keeping the state’s gambling industry competitive with surrounding states.
“The administration is reviewing the proposal and will discuss the issue during the regular session,” said Max Reiss, Lamont’s communications director, in a written statement. The 13-week session of the General Assembly starts on Wednesday.