Foxwoods at 25, what a trip it has been
Against all odds, a massive casino arose in the woods of Ledyard. Twenty-five years later it faces new challenges and a less certain future.
T he wonder of it all.
How implausible is Foxwoods Resort Casino? Born of a tribe that almost had ceased to exist, the largest resort casino in North America rises out of the countryside of southeastern Connecticut, the nearest highway about a 15-minute ride away. And who had the vision to undertake such a fantastic venture? A pipe-fitter, Richard “Skip” Hayward.
As unlikely as it may be, Foxwoods this month celebrated its 25th anniversary.
Led by Hayward, the Mashantucket Pequot Tribe won federal recognition in 1983. In 1986, the tribe opened a highstakes bingo hall, which it still operates. In 1988, Congress passed the Indian Gaming Regulatory Act, giving tribes the opportunity to generate commerce via legalized gambling.
Foxwoods Resort Casino opened in 1992. A 2 a.m. closing time was set, but the casino remained packed as the hour approached. The dealers kept working and the players kept betting. A quarter century later, the resort casino has still never closed.
Locally, Foxwoods became a major employer and economic engine, drawing in patrons and their dollars from other states. In 1993, when Gov. Lowell P. Weicker negotiated a deal to allow slot machines, Foxwoods began contributing 25 percent of its slot revenue to the state and became a major revenue source for Connecticut.
Through its charitable giving and the voluntary work of the people it employs, the casino has become deeply engaged in the civic life of the community.
Nationally, Foxwoods led a movement that now includes more than 400 gaming properties owned and operated by about 200 tribes across the United States. The casino in the woods of Ledyard began an era of wide acceptance of casino gaming throughout much of the country.
Arguments continue as to whether gaming is a worthwhile economic pursuit. Casino expansion has exposed more individuals to the addiction of gambling.
But there is no question that Foxwoods has produced jobs. Today, the casino’s workforce consists of about 4,900 “full-time equivalents,” as it operates 4,400 slot machines and 250 table games. Hundreds more are employed in its associated and privately operated shops and restaurants.
It has been quite the 25-year ride. When Foxwoods opened as the only casino between New York and Boston, it dominated. The tribe could not expand casino operations quickly enough to meet what appeared an unquenchable demand.
Even the 1996 opening of a second tribal casino in the area, the Mohegan Sun, gave no pause to the expansion.
There were growing pains. Families who were middle-class, and often even lower on the economic ladder, suddenly found themselves rich due to the cash cow that was Foxwoods. That kind of sudden wealth will result in abuses and social problems. The Mashantucket members were not immune.
In time, there were financial problems. The tribe borrowed heavily to build a casino and hotel tower and invest in largescale improvements to the road system leading to the resort.
The timing proved awful. What was then the MGM Grand at Foxwoods, and is now called The Fox Tower, opened just as the state and nation faced the worst recession since the Great Depression of the 1930s. Additionally, casino competition continued to expand in the states surrounding Connecticut, siphoning off Foxwoods patrons.
That debt remains a shadow over the silver anniversary. In 2013 Foxwoods restructured that debt, but it continues to struggle to meet the terms of the $1.7 billion deal. It has since negotiated several forbearance agreements with lenders, most recently extended to the end of this year.
But the tribe has proved resourceful in adapting to a new reality. In 2015, the Tanger Outlets at Foxwoods opened, making Foxwoods a destination for more shoppers. Last year the casino began the first phase of a major remodeling of its Great Cedar gaming floor, refreshing the look for patrons.
Going forward, the challenges remain immense as competition grows. But in creating their casino “where the trees are standing tall,” the Mashantucket Pequots have beat long odds before. Congratulations on their 25 years and counting.