Gambling operator MGM Resorts said in a statement that the compact between Connecticut’s two federally recognized tribes – the Mohegan and the Mashantucket Pequot – to establish a tribal casino within the state’s borders and on non-tribal land was the product of an unfair and illegal gambling act.
Last year, MGM Resorts was given the green light to build one of the three fully-fledged casinos in Massachusetts. The $800-million MGM Springfield will be located not far from the state’s border with Connecticut. The above-mentioned tribes have previously indicated that they would like to open their joint venue somewhere near the border in order to blunt competition coming from neighboring Massachusetts. In other words, the two casinos will be direct competitors and will have to fight for gambling customers.
Proponents of the joint tribal venture have said that the project would help Connecticut protect revenue and jobs. However, Alan Feldman, Executive Vice President of MGM Resorts, said that the Mohegans and the Mashantucket Pequots’ plan and the fact that it was given the nod by state legislators could be considered violation of federal laws.
Last week, it was announced that the two federally recognized tribes will be the only ones that will be allowed to open a new casino in Connecticut. Earlier this year, MGM Resorts hinted that it had been interested in running a gambling venue in the state.
Mr. Feldman said in a statement that the announcement was “a continuation of an unconstitutional process” that prevents other gambling operators from making much more beneficial proposals. According to the executive, the decision regarding the two tribes running a joint casino was the product of a “flawed, closed-door deal.”
Tribal leaders have repeatedly pointed out that Connecticut needed such a deal as it would ensure that the state would not lose much-needed gambling revenue and casino workers would not be left unemployed. According to a research funded by the two federally recognized tribes, more than 9,300 employees could lose their jobs, if the state does not take due measures to fight competition from Massachusetts and New York, which are to open a number of casinos by the end of the decade.
Currently, there are two gambling venues in the state – Mohegan Sun and Foxwoods.
The two tribes will first have to reach an agreement with a host municipality where the new casino is to be located. East Windsor, East Harford, and Enfield are the three municipalities near the state’s border that have expressed interest in hosting such a facility.
However, the Mohegans and the Mashantucket Pequots will first have to overcome the legal issues they are currently facing. Last month, MGM Resorts filed a legal complaint in federal district court arguing that Connecticut’s new gambling act violated the Constitution.
According to the gambling operator, the legislation could be considered breach of two important clauses – the Commerce Clause and the Equal Protection Clause of the Fourteenth Amendment. MGM Resorts claimed that the first one had been violated due to the fact that out-of-state competitors had not been allowed to bid for a casino license.
As for the Equal Protection Clause violation, the gambling company noted that by limiting development rights to the two tribes, other national and racial groups had been denied the chance to materialize potential casino projects.
