A bill providing for the construction of Connecticut’s first commercial casino was voted in favor of by the state House early on Wednesday, the final day of the General Assembly’s 2017 legislative session.
The legislative piece now needs to be signed into law by Gov. Dannel Malloy. The state’s highest ranking official has recently told media that in terms of gambling expansion, he would support a deal that would keep casino jobs and revenue in Connecticut’s borders.
The proposal for the construction of a commercial casino in the northern part of the state first emerged back in 2015. There are currently two operational casinos in Connecticut, with both of them being located on reservation land. The state’s two federally recognized tribes – the Mohegans and the Mashantucket Pequots – are running one casino each.
The two nations proposed to build a joint casino off-reservation land in order to prevent job cuts and revenue loss when a $950-million casino resort is launched in Springfield, a Massachusetts city located not far from the state’s border with Connecticut.
The bill that would authorize the construction process was passed by the House in a 103-46 vote. The positive vote came after months of deliberations whether a third casino, and a first commercial one, would be good for the state and its economy.
Eventually, the need for additional revenue sources and the gloomy possibility of over 9,000 people employed at Connecticut’s existing casinos to lose their jobs prevailed in the House. The casino bill was previously voted in the state Senate.
A last-minute amendment to the legislative piece provided for further expansion of the state’s gambling industry. Under said amendment, the number of off-track betting licenses will be increased to 24 from 18.
The two tribes are planning to build a 200,000-square-foot casino in East Windsor. The 12,000-person town is located not far from Springfield. The gambling venue will aim to be a direct competitor to the $950-million resort Las Vegas casino giant MGM Resorts International is currently building in neighboring Massachusetts.
The Mohegans and Mashantucket Pequots’ joint casino is planned to feature around 2,000 slot machines and up to 150 table games. However, it is important to note that it will not have a hotel or any other non-gambling amenity.
Under the bill, the two tribes will be required to pay 25% full-year tax on their gambling revenue. Both the Mohegans and the Mashantucket Pequots have been paying the same 25% on slot machine revenue from their existing casinos, under a 1990 compact with the state. The two tribes have contributed around $7 billion to Connecticut’s coffers over the past 25 years and are expected to pay the state more than $220 million in 2017.
Although the casino proposal has gained the necessary legislative support, its trials are far from over. MGM Resorts announced that it would contest the casino’s approval in an US District Court, arguing that Connecticut’s Legislature had violated key Constitution clauses by denying outside operators the opportunity to apply for what would be the state’s first commercial casino license.
The major gambling operator has previously expressed interest in building a Las Vegas-style resort in Connecticut’s southern part, where it would be able to draw clientèle from New York. MGM Resorts has pointed out that a property of this kind would require a license fee of at least $100 million, which would go directly to Connecticut. Under the approved bill, the two tribes will not pay a license fee.
