Las Vegas gambling operator MGM Resorts International suffered another blow in its continued effort to be allowed to bid for the right to build a casino in Connecticut.
On Wednesday, a federal appeals court turned down the company’s claim that state officials had violated the US Constitution by limiting the call for casino bids to the federally recognized Mashantucket Pequot and Mohegan Tribes. The two tribes currently operate Connecticut’s two existing casinos on tribal land.
In 2015, the state approved the construction of what would be its first commercial casino. The two tribes emerged with a joint project for building a gambling venue in Connecticut’s northern part. MGM has been trying to convince state legislators that a casino in its southern end would be a better option as it would be able to compete with New York’s growing casino market.
Earlier this month, the state Legislature gave the nod to a bill that allows for the two tribes to build their casino in the town of East Windsor. If and when eventually launched, the venue will compete directly the $950-million MGM Springfield resort, currently being under construction in neighboring Massachusetts and slated for a fall 2018 opening.
Connecticut’s two federally recognized tribes have repeatedly pointed out that MGM’s casino would have a detrimental impact on their two existing gambling venues. According to initial estimates, more than 9,000 casino employees could lose their jobs and the state could lose much-needed revenue as a result from competition from neighboring Massachusetts.
Gov. Dannel Malloy is yet to put his signature to authorize the recently approved piece of legislation. The state’s top official has previously indicated that he would not oppose the bill.
The Wednesday ruling of the US Court of Appeals for the Second Circuit came after a lower court had too dismissed MGM’s argument that Connecticut had breached Constitution principles by limiting the casino bidding process to just the two tribes.
However, here it is important to note that the federal appeals court pointed out on Wednesday that its decision may be a temporary one given the rapidly changing gambling environment.
Although the two tribes’ joint project has been approved in the Legislature, there still are lawmakers that argue the bidding process should be reopened and more interested parties should be allowed to submit their proposals.
The appeals court wrote in its ruling that it is not ruling out the future possibility for MGM to endure any harm as a result from the construction of a commercial casino by Connecticut’s two federally recognized tribes. However, the court pointed out that the possibility is now (and for now) only “hypothetical”.
