Connecticut Governor Ned Lamont last week proposed a plan that would turn the aging XL Center in Hartford into a casino, hand it over to the state's two federally recognized tribes to operate gaming at the arena, and also bringing legal sports betting and iGaming to the state. The plan is contingent on the tribes' agreement to drop their proposal for a jointly-run casino in East Windsor.
According to the HartfordCourant, Lamont's proposal would allow the Mohegan and Mashantucket Pequot tribes, operators of Mohegan Sun and Foxwoods respectively, to also open a casino in Bridgeport, advantageously located near the New York City and Long Island markets. MGM Resorts International had proposed a casino of its own in Bridgeport and has filed a lawsuit against the Department of Interior to block the plans.
Uncertainty over just how much demand there is for more casino gambling in the region has resulted in a cut in the amount of money being invested by Connecticut's two tribal gaming operators in. An effort by the Mashantucket Pequot and Mohegan tribal nations to build a casino near the Massachusetts border has been indefinitely shelved. The proposed Tribal Winds Casino in East Windsor would have been the first Connecticut gaming destination existing outside of tribal lands. Originally proposed in 2017, it was initially planned to open in early 2021 as a $300 million project. The opening of a casino in East Windsor could save roughly half of those jobs, Doba said. Further, the East Windsor developers said at the informational forum that Connecticut will lose $68.3 million in tax dollars and $337 million in total revenue once the MGM Springfield opens — a loss that would be offset by the East Windsor casino. Brian Hallenbeck After a Zoom meeting with state and local officials representing East Windsor, the chairmen of the Mashantucket Pequot and Mohegan tribes announced Wednesday they will continue delaying development of the state's third casino in the north-central Connecticut town, a project the state authorized in 2017.
According to MGM's suit, filed last week, changes by Interior to the compact between Connecticut and the tribes 'facilitate commercial, off-reservation gaming by the tribal joint venture anywhere in Connecticut and state legislators have recently proposed granting the joint venture an exclusive, no-bid license to operate a casino in Bridgeport, Connecticut.
'The amendments thus confer a statewide, perpetual competitive advantage on the joint venture,' MGM said.
An end to the East Windsor casino plan MGM's goal; its $1 billion casino in Springfield, right across the state line in Massachusetts, has failed to meet expectations for revenues and profits, and its plan to build a $675 million casino complex on Bridgeport's waterfront has never received approval by the legislature.
The tribes plan a gaming resort called Tribal Winds to be developed at the site of the former Showcase Cinemas in East Windsor, right across the state line from the MGM Springfield. Construction has not yet begun on the site.
Lamont's plan has been rejected so far by the tribes, who have spent nearly $20 million in planning, design and demolition costs on the $300 million East Windsor casino.
Ryan Drajewicz, Lamont's chief of staff, said the governor's 'primary objective' is to 'do what's best for the state of Connecticut, not the narrow interests that so often dominate this issue at the expense of the citizens of this state.'
In return for giving up East Windsor, officials said the tribes would also receive permission to run sports betting across the state and conduct iGaming.
The XL Center, built in in the mid-1970s, operated by the Capital Region Development Authority and Comcast Spectacor, reportedly needs hundreds of millions of dollars in repairs and renovations. If the tribes were to take over the XL Center, it would be upgraded and continue to host NCAA basketball and minor league hockey.
Mashantucket Pequot tribal Chairman Rodney Butler said, 'We're looking at a global solution—looking at sports betting, online gaming, extended liquor hours, casinos in Bridgeport, casinos in Hartford, and we're trying to wrap it all into one conversation. It's complicated.'
Lamont said he's motivated to develop a plan that can succeed, sans legal challenges. 'If this gets stuck in the legal muck like it's been for the last five years, we're not going to show any progress,' Lamont said. 'I wanted something that made sure we didn't get stuck in a legal ditch for the next five years. … I wanted something that allows us to get going with sports betting and internet gambling.'
'Those aren't things that I do or care particularly about, but that's part of the 21st century,' he continued. 'Our neighbors are beginning to do it, and I want to get going on it. I just worry that if we have a partial solution that leads to another round of litigation, we're not going to be any better off.'
Democratic Senator Cathy Osten, a staunch supporter of the tribes, said, 'I'll revive any [gambling] idea that lets us get off the dime, and I don't have to sit around and talk about gambling for the next three years—because in terms of my priorities, I'm not sure it's in the top 20.'
Osten pointed out that the tribes are the seventh- and eighth-largest employers in the state and account for more than 15,000 jobs. Their casinos attract millions of customers every year with more than half of them coming from out of state. Over the past 27 years, the tribes have contributed $8 billion to the state in a revenue-sharing agreement that allows them to operate slot machines.
The Connecticut Mirror cited Andrew Doba, a spokesman for MMCT, the joint venture of the Mashantucket Pequots and Mohegans. Starlight casino shuttle service. 'They are not willing to walk away from the Tribal Winds Casino in East Windsor, a project where they've invested nearly $20 million.'
Lamont seems stuck on the revitalization of the XL Center. 'I've got a priority to fix the XL Center and make that what it should be, as a center for this growing city of Hartford,' he recently said. 'And I've reached out to a number of different groups as we think about a public-private partnership, which is the best way for us to do it. It's not simply a matter of the taxpayers throwing money at the XL Center, but working with a strong partner so it could be as vibrant as it could be.'
A bill filed by Osten would grant the tribes exclusive rights to online sports betting in Connecticut, authorize them to jointly operate the casino in Bridgeport and open sports-betting 'entertainment zones' in Hartford and two other unspecified communities. The tribes countered that they already have exclusive rights to sports betting in Connecticut should it be legalized in any form here.
The tribes also say East Windsor would siphon customers from MGM Springfield, while a Bridgeport casino would cannibalize the tribes' own Connecticut patrons, pulling from its Fairfield County and metro-New York.
The General Assembly passed legislation in 2017 that authorizes MMCT to build the East Windsor casino. MGM sued before the bill passed, claiming it would violate the equal protection and commerce clauses of the U.S. Constitution.
In another glitch, the tribes have yet to obtain financing for the $300 million project, and they still are fighting local zoning appeals that they say are financed by MGM. Both tribes have outstanding debts of $1.8 billion.
A new CT sports betting bill focuses solely on authorizing the activity with in-state gambling operators. Whether it solves any of the state's lingering issues remains to be seen.
The bill was introduced Tuesday by the Joint Public Safety and Security Committee, which held a hearing on Connecticut sports betting last week.
It authorizes retail and online sports betting conducted by:
- Mohegan Sun
- Foxwoods
- Proposed East Windsor tribal casino
- Off-track betting parlors
- Connecticut Lottery Corporation
East Windsor Ct Casino Update 2019
Details of Connecticut sports betting update
Rep. Joe Verrengia, the co-chair of the committee, is the driving force behind H 5168. He teased its introduction at the committee hearing last week.
Key components of the CT sports betting legislation include:
- A tiered tax rate of 10% for in-person wagers, 14.75% for online wagers.
- A sports wagering operator license fee of $750,000 and an application fee of $100,000. Each is renewable every five years for the same amounts. The lottery is exempt from such fees.
- A sports wagering vendor license fee of $300,000 and an application fee of $100,000. Each is renewable every five years for the same amounts.
- The CT Lottery can offer sports wagering online and at no more than four 'high-tier claim centers.'
- Allows for the establishment of entertainment zones in Bridgeport, Hartford, New Haven, Waterbury or other municipalities. However, each facility conducting sports betting must be at least 10 miles away from one another.
- No individual or business organization licensed as a sports wagering operator or vendor, and no business affiliated with such licensee, may own or have an equity interest in a business that cultivates or sells marijuana, cannabis or related products.
- The law will not go into effect until the governor amends the tribal-state compacts to allow for sports betting. Then, the amendments receive an OK by the US Department of the Interior and CT General Assembly.
Changes to CT sports betting since last session
The committee introduced a sports betting bill last session as well. Facing opposition from the MashantucketPequot and Mohegan tribes, who were also negotiating behind the scenes with Gov. Ned Lamont, the legislation went nowhere.
Compared to last year's bill, this effort increases license fees but extends their length from two to five years, adds the higher tax rate for mobile wagers, allows for entertainment zones and limits the lottery to four retail locations.
Two other major adjustments
Two more significant changes are that the bill no longer requires people to have to establish a CT sports wagering account in person prior to placing a wager on a mobile platform. There is no mention of giving professional sports leagues a cut of the action either.
The previous bill had a vague reference to having the Commissioner of Economic and Community Development work with sports leagues to create a partnership in which sports betting revenue was used to generate professional sporting events and programs in the state.
The idea of entertainment zones, or sports betting facilities in major cities, is from the other bill in the state. Sen.Cathy Osten'sS 212 is a comprehensive gaming expansion that gives sports betting in Connecticut exclusivity to tribes.
Tribes have threatened a lawsuit if bill passes
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At last week's hearing, leaders of the Mashantucket Pequot and Mohegan tribes asserted they would sue the state for breaching their contract for exclusivity to offer casino games if the state passed a law allowing other entities to provide sports betting.
The tribes also would cease making annual payments of approximately $250 million in slot revenue to the state.
Whether CT sports betting is included under the definition of casino games is a key point of contention in the state that may need to be settled in the courts for Connecticut to move forward with sports betting in any fashion.
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Verrengia hopes to reach an agreement between the state and tribes to avoid such a situation.
East Windsor Ct Casino Update Today
'It's my hope that the state can continue to work with our tribal friends to reach a mutually acceptable agreement that's not only good for the state of Connecticut, but also good for the other stakeholders,' Verrengia said. 'We have other businesses like the OTBs who have an investment in the state and an investment in jobs. They are licensed to run gaming as well as you. Let's take care of those entities that are presently licensed in the state of Connecticut and let's move our sports betting policy forward.'
