Connecticut considering more casinos
As Massachusetts continues its years-long entry into the casino market, Connecticut lawmakers appear poised to make one of the next big moves in the regional competition for gambling industry jobs and revenue.
To protect gambling industry jobs in Connecticut, lawmakers there are now pushing a bill to allow the Mashantucket Pequot and Mohegan Tribes to jointly operate up to three new casinos. Connecticut officials appear particularly focused on competing with a resort casino licensed for Springfield, Mass. MGM Springfield plans to break ground this month on an $800 million resort casino.
"Massachusetts has declared economic war on us and we're going to fight back," Connecticut Senate Majority Leader Bob Duff of Norwalk said at a press conference last week with union officials, casino workers and tribal leaders who run the Foxwoods and Mohegan Sun casinos.
Massachusetts Sen. Eric Lesser of Longmeadow said Thursday afternoon that news of Connecticut's push is "just breaking," but that Springfield area officials are confident the city can withstand any competition because the casino is part of broader economic development and revitalization plans for the city.
"There's of course concern but this just focuses even more on the importance of making sure our plan is competitive," Lesser said.
The two existing Connecticut casinos - Foxwoods and Mohegan Sun - once ruled the regional gambling sector but now face competition from Massachusetts, which passed its casino law in 2011, and from New York and Rhode Island. In addition to Springfield, Massachusetts regulators have licensed a Wynn Resorts casino planned for Everett and a slot machine facility in Plainville and are considering applicants for a third full-scale resort casino in southeastern Massachusetts.
According to Duff, state government in Connecticut has seen an erosion of its revenues from the two tribal casinos from a peak of $430 million per year to $260 million per year.
After last week's press conference, the Connecticut General Assembly's Committee on Public Safety on Tuesday held a hearing on the expanded gambling bill and heard support and opposition to the proposal.
A Connecticut Senate leadership aide said Wednesday night he expected the bill could be voted out of committee in the next couple of weeks and sent to the Senate. The aide said it was too early to tell whether the measure would advance to the governor.
Sen. Cathy Osten (D-Sprague) represents the Connecticut district that is home to Foxwoods in Ledyard and Mohegan Sun in the Uncasville section of Montville. She also appeared at last week's rally, saying, "We will not stand aside and let any other state - New York, Massachusetts or Rhode Island - take jobs away from Connecticut."
At a Massachusetts Gaming Commission meeting Thursday where regulators were considering casino plans for southeastern Massachusetts, commission chairman Stephen Crosby said Massachusetts officials and holders of gaming licenses in the Bay State realize the casino market is a "competitive situation."
Asked about the impact of another casino in Connecticut, Crosby said, "We're not concerned that that's going to materially compete with us . . . There'll be a few people who want to play the slot machines that'll go there, but we're aiming for a much bigger, much higher market, and people go, within a certain distance, people go to the best facility. And these are going to be phenomenal facilities, and the one in Springfield in particular."
Resort casinos planned in Massachusetts are "very expensive, very high quality," Crosby said, adding, "They are going to be very attractive."
Referring to Foxwoods and Mohegan Sun, Crosby said, "Both of those companies have huge capital problems. And I think they're talking about -- I've only seen the press reports -- but they're talking about really modest facilities."
Foxwoods is also looking to put down roots in Massachusetts. The city of New Bedford and KG Urban Enterprises announced Thursday they have entered into a host community agreement for a destination casino on the city's waterfront.
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