A Connecticut General Assembly committee approved on Monday a legislative proposal that paves the way for the state’s third casino.
There are two operating casinos in Connecticut, both of them located on tribal land. Foxwoods Resort Casino is run by the Mashantucket Pequot Tribe, and Mohegan Sun is owned and managed by the Mohegan Tribe.
In 2015, Connecticut’s two federally recognized tribes announced plans to build jointly a new gambling venue, one located in the state’s northern part. It was announced earlier in 2017 that East Windsor had been approved to host the new casino. The jointly operated gambling venue will be located on non-reservation land, thus becoming the state’s first commercial casino.
If eventually built, it will be a direct competitor to MGM Springfield, the $950-million resort currently being under development in neighboring Massachusetts. Tribal officials have been urgent about the project’s realization. They have argued that the Springfield property could result in tax revenue leaving Connecticut’s borders and thousands of employees at its existing casinos losing their jobs.
The proposed third casino needs legislative approval in order for developers to be able to proceed with construction. Monday’s vote was a very small, but important step towards the project’s realization.
It was SB 957 that was put before Appropriation Committee members yesterday. Generally speaking, the bill allows for the construction and operation of a commercial casino by the state’s two tribes. If launched, the gambling venue will have to pay a 25% tax on revenue from slot machines and a 25% one on table games. Proceeds from table games will be split, with 15% going to tourism marketing, and the remaining 10% being channeled directly to the state’s coffers.
The bill will now have to be considered in the General Assembly’s full House and Senate floors. If it gains the necessary support, it will then be put on Gov. Dannel Malloy’s table for a final signature.
As already mentioned, the town of East Windsor had been selected as a preferred location for the new casino. Tribal officials have pointed out that if built, the venue will generate over 1,700 jobs and annual revenue of $8.5 million for its host community.
SB 957 is not the only casino-related piece of legislation brought up for discussion during the current legislative session. There are two more proposals in the state’s Legislature. However, if any of them is approved, this will re-open the casino bidding process, making it possible for both tribal and commercial gambling operators to apply for a casino license.
In addition, a new bidding process and a new winning bidder may decide to change the proposed location of the third casino to another part of the state. Competing interests have asked to be allowed to build a commercial Las Vegas-style resort near Connecticut’s border with New York. The latter state is currently undergoing a big expansion of its commercial casino industry.
