Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The Mohegan and Mashantucket Pequot tribes broke ground in March on a 200,000 square foot casino in East Windsor, Connecticut, that is meant to directly compete with MGM just a few miles across the state line. But the tribe's project has been delayed because the U. S. Department of Interior has not signed off on a revised revenue sharing agreement between the federally recognized tribes and the state.
It's complicated to say the least. Here's a few basic things to keep in mind.
No state government can tell another state what they can and cannot do in gaming.
However, the feds can and they certainly can get involved with tribes.
There was thought that MGM would buy Wynn out and then sell off MGM Springfield probably to one of the tribes. Although that might make economic sense a long list of things would need to occur for that to happen.
Wynn isn't for sale or at least for sale yet. The shareholders want changes on the board of directors and to get them seated and approved could take months. Having said that Wynn just operated at a loss in the previous quarter. https://www.wsj.com/articles/wynn-re...oss-1524604466 It might make greater sense to let Wynn try to dig itself out and *then* see what happens. There's an old saying in the stock market "Never catch a falling knife". Maybe the tribes might be interested if they have to sell this cheap.
Since CT has no real procurement laws nor a gaming commission the likelihood of a 3rd casino being legally authorized is pretty low, especially if the tribes are running it. They can demo the movie theater and run any type of business they want off tribal land as long as it isn't a casino.
It is within the best interests of local communities to have a full and fair bidding for the license. Perhaps it can include sports betting and animal racing (horse/dog). The process the tribes took lacked transparency and reeked of shysterism. Allowing late proposals, partial proposals (what does that mean legally?), allow owners of property to submit without local approval etc. It could be another three to four years before another casino could be made in CT between a license bidding, demo work, site work and hiring.
Looks like the Indians received at least part of the federal approval needed for East Windsor. They gave the Mohegans approval but now need to do the same for the Pequots. Jay
The bottom line is CT cannot simply screwed up with the licensing.
They did the following
1) They allowed two tribes to have exclusive casino deals
2) They allowed a third casino to be opened with no competition and allowed the tribes to create that entity. That's called collusion. Imagine if the US military wanted a new type of Hummer and they have AM General and GM suddenly merging to create one bid. Yeah that doesn't work that way
3) They want to grant them jurisdiction off of tribal property which itself is pretty iffy and goes against the concept of a reservation as it would violate the full faith and credit clause of the constitution as well as the equal protection clause.
You have to have an open and fair bidding process to ensure that CT gets the best deal and not just modify a policy made in the early 1990's.
Having said this though they can still operate in other areas. If Mass opens up Region C that could get a whole other area open if they wish. The Wampanogs supposedly owe Genting 300 million. The other issue with them was actual federal recognition. Could they pay off their 300 million in exchange for being a private operator on their land. They still own at least 300 acres in Middleboro. Of course 300 million for land without anything on it would be a hard sell.
If Wynn either loses their license or is forced to sell that could be another opportunity. Why even bother trying to make another casino if you can buy one that's more than half made at half the price? I have a strong feel that Wynn's investigation is going bad and even with the name change MGC is going to have to have someone else take it. Leaving that building half built isn't a good option. Maybe a bid to take it over. The tribes argued about it before. Ok fine you want it, here you go, it's yours. It's the biggest construction site in all of new england at this point.
Last edited by mdovell; 10-01-2018 at 07:57 AM..
Reason: adding more
It took them long enough. This was highly suspicious and I hope there is a thorough investigation of the delay. If the delay was a political favor, I hope charges are brought against the Interior Secretary. Jay
They can probably bring charges but given the current investigations that might just be a corollary.
I still think politically it's going to be a hard sell given that CT is pretty much going to approve tolls. East Windsor *still* hasn't approved this and that's odd. You figure you'd go with local and state first and then federal.
This is still odd though https://www.masslive.com/news/2019/0...ds-casino.html
"The town, with a budget of $42 million a year, expects to get $8.5 million a year from the casino. That number includes $5.5 million in property taxes and $3 million in impact fees. Neighboring towns and distressed municipalities in the state will get $750,000 a year each in impact payments, Maynard said.
The towns that will get the $750,000 will include: Bridgeport, New Haven, Hartford, East Hartford, Ellington, Enfield, Norwalk, South Windsor, Waterbury and Windsor Locks."
huh? Ok I get many of those but Bridgeport? Why should bridgeport get anything from this given they are 70 miles away? Neighboring I get but seriously the impact to Bridgeport will be nothing. In Mass it's only directly neighboring areas. Northampton complained enough. This would be like if Brattleboro complained about MGM Springfield!
You have to factor in CT rail to MGM Springfield (via the loop) and that if this opens in another two years the following years the tolls will start. Union station to MGM is a mile at most. What rail stop is going to have a shuttle to East Windsor?
They probably jumped the gun with this whole thing. By announcing this before MGM results it created a risk. If they back out now they'll look like they just paid for demo work. The real threat now isn't so much MGM but Wynn. The tribes would be better suited to go after Wynn then MGM. Eastern Mass has a much higher population and income level. Being reactionary in this hurt them. Meanwhile region C in Mass is debatable. If rail gets established between springfield and worcester then it's over. Worcester could go to Wynn or MGM. Tribes get reduced to just eastern CT and maybe some of RI.
Of course the attraction afterward is what else is there after gambling. MGM kinda gets word of this which is why rock climbing and sky diving simulators are coming. Recreation is going to be pushed. Oddly enough Sonny's place is promoted in Springfield
MGM Springfield has been a flop. They are not doing the numbers they need or expected. Connecticut casinos have not really been that impacted by MGM. The downtown Springfield location was a big mistake. They scaled the size of the project back and are now stuck there. Nothing about MGM Springfield screams high end gambling establishment. Foxwoods and Mohegan Sun are major complexes that offer a lot to draw customers. Mohegan Sun is expanding by building up a major convention center business. Foxwoods has the Tanger outlets. CT casinos took approx. 25% hit to gambling bottom line. They are going to get that money back ten fold with other streams of revenue coming into the properties. East Windsor joint casino is not really necessary but it will eventually lead to future expansion years from now. I think Bridgeport or New Haven area will probably get a casino eventually. Gambling is spreading across the country. Sports betting is becoming huge business in many states. Connecticut will push legal marijuana and sports betting. The tax revenue is too great for the greedy Hartford legislators to pass up.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
