The US Department of the Interior reaffirmed its stance from last year that a third casino in Connecticut would not affect the slots revenue-sharing agreement between the state and its two tribal casinos – Mohegan Sun and Foxwoods Resort Casino.
The two gambling venues are operated by Connecticut’s two federally recognized tribes – the former by the Mohegan Tribe, and the latter by the Mashantucket Pequot. Under their compact with the state, both tribes are annually sharing a 25% portion of their slot machine revenue, with the money going to Connecticut’s coffers.
In 2015, the two tribes proposed to build the state’s third casino and first one on non-reservation land. They pointed out that a third gambling venue should be built in the state’s northern part to be able to fight competition from MGM Resorts International’s $950-million Springfield casino resort, which is set to open doors in the fall of 2018.
In a technical letter from last year, the US Department of the Interior penned its views on the matter. Acting Deputy Secretary of the Interior James E. Cason was the person to write the letter, stating that the existing agreement between Connecticut and its two tribes would not be harmed in any way by the construction of a third casino.
The official confirmed that stance in a Friday letter to tribal chiefs, pointing out that the change of Presidents from Barack Obama to former Atlantic City casino mogul Donald Trump has not changed the Department of the Interior’s opinion.
However, Mr. Cason pointed out that the Friday letter should not be interpreted as approval of the proposed plan for a third casino. The tribal plan should first be given the nod by Connecticut’s Legislature and then needs to be formally presented to the Department of the Interior.
State legislators are yet to decide whether the two tribes’ joint venture will be allowed to build a gambling venue off reservation land. The proposal has been met with staunch opposition from several parties, including MGM Resorts. The Las Vegas casino developer and operator has too expressed interest in building a casino in Connecticut, but was not allowed to do so due to the tribe’s exclusivity over casino gambling in the state.
There is a legislative proposal on the lawmakers’ discussion table that calls for the call for casino bids to be reopened and commercial operators from outside the state to be allowed to enter competition. The tribes’ own proposal is also currently being reviewed by the General Assembly. State legislators have less than a month to decide on what would be best for the local casino industry as this year’s legislative session is set to conclude on June 7.
If the two tribes are allowed to build a commercial casino, it will be hosted by the Town of East Windsor, as it became known earlier this year.
