A new report on Connecticut’s gambling industry was released on Monday. It was financed by the Mohegan and the Mashantucket Pequot tribes, which manage the state’s two casinos.
According to the report, compiled by gambling expert Clyde Barrow, the Mohegan Sun and the Foxwoods Resort Casino would annually lose more than $700 million once the new casinos in neighboring New York and Massachusetts open doors by 2019. Furthermore, yearly slot revenue is expected to fall more than $100 million.
As previously reported, the two tribes have asked the Connecticut Legislature to adopt a bill that would allow them to open and operate jointly three new casinos in order to be able to blunt the constantly growing competition from neighboring states. Their top priority is the construction of a $300-million gambling venue not far from Hartford that would compete with the $800-million MGM Springfield.
Mr. Barrow stated in his report that of those $700 million in revenue, about $253.2 million would probably be spent by state residents from the northeastern part of Connecticut who would go to MGM Springfield instead of Mohegan Sun or Foxwoods.
Furthermore, if the Mohegans and the Mashantucket Pequots are not permitted to build new casinos, they would have to reduce their staff by 5,812 people. As many as 1,890 jobs would also be lost, as gambling operators would not spend much with vendors.
Mr. Barrow also estimated that 1,598 more people would be laid off due to “lost wages by former casino employees.” In other words, 9,300 residents of Connecticut would remain unemployed, unless the Legislature approves the tribes’ joint project.
The plan for the launch of three new gambling venues in Connecticut seems to have its opponents, as well. For instance, New Haven-based operator of off-track betting systems Sportech Venues stated that a new casino would leave about 400 of its workers unemployed.
Ted Taylor, President of Sportech Venues, pointed out that his company is ready to work together with the Legislature and the state’s two casinos once it comes to discussions over the prevention of jobs losses. Mr. Taylor also suggested that a potential expansion of some of Sportech Venues’ sites might be a good idea.
Annually, the state receives 25% of its two casinos’ slot revenues. In 2013, the total amount of $296.4 million went to Connecticut’s general fund.
Revenues of both Mohegan Sun and Foxwoods dropped by 39% in the past 8 years. Last year, a total of $1.9 billion was posted. By comparison, revenues peaked to $3.2 billion in 2006.
The considerable decline resulted in casino workers being laid off. According to latest reports, about 8,500 residents of Connecticut have lost their jobs at the state’s two casinos since 2006.
