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Connecticut's two Native American tribes are dropping their long-stalled plans for building a new casino in East Windsor — potentially paving the way for a broader solution on sports betting and gambling issues across the state.
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The Mohegan and Mashantucket Pequot tribes announced Wednesday that they are temporarily disbanding their long-held plans for an East Windsor casino at a time when the gambling market has shrunk significantly during the COVID-19 pandemic. The casinos have been operating at only 25% capacity during the pandemic as the tribes have installed social distancing practices at the facilities that are two of the largest casinos in the world.
Attendance has been down overall as some gamblers are reluctant to head to the casinos, cutting into the profits for the tribes.
The tribes are reserving the right to construct the Tribal Winds casino in East Windsor in the future, but they have now made a public statement in advance of the 2021 legislative session that they have no immediate plans to build there.
'We've been through so many ups and downs when it comes to the Tribal Winds project,' the tribes said Wednesday in a joint statement. 'There have been many moments where it was clear the easiest path would be to just walk away. And while there's no way we could have accounted for this latest delay, we still believe Tribal Winds is a viable project that will come to fruition once markets improve and we've taken concrete steps toward restoring normal business operations.'
Gov. Ned Lamont has been pushing the tribes to drop their plans for East Windsor in order to avoid litigation from MGM Resorts International, which operates a casino only several miles away in Springfield. Lamont has said repeatedly that long-running lawsuits would stop any progress that the state wants to make on gambling.
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With East Windsor sidelined, some lawmakers believe that the state can reach an overall solution with the tribes that they have been seeking for years.
Lamont had hoped for a resolution during the last legislative session, but that was short-circuited when the session was essentially suspended in March due to the coronavirus pandemic. The state Capitol has remained closed to the general public ever since. Before that short-circuiting, Lamont had spoken optimistically about a deal.
'Look, the rest of the country and all our neighboring states are working hard on sports betting, iLottery and some of the other things that we need to do to make us competitive in this growing economy,' Lamont said at the time. 'I want to do that in association with the tribes. … We're doing that in collaboration and doing it in a way that mitigates the risk of a lawsuit.'
But the tribes repeatedly rejected Lamont's call for dropping the East Windsor casino that they had sought for years.
'I'd like a global agreement,' the governor said at the time. 'But in the meantime, I'm going to take what I can get.'
Once seen as a leader in the talks on sports betting, Connecticut has fallen behind other states. Lawmakers were talking about sports betting even before the landmark ruling by the U.S. Supreme Court in a New Jersey case allowed each state to make its own decisions.
In 2017, Connecticut lawmakers said they were far ahead of other states in laying the groundwork to prepare for sports betting. A representative from Major League Baseball said in April 2018 that Connecticut had the chance to pass model legislation that would be emulated by other states. In that month, former New York Mets star pitcher Al Leiter and Boston Celtics star Cedric 'Cornbread' Maxwell came to the state Capitol to tout the benefits of sports betting. But those days have passed as other states have legalized sports betting ahead of Connecticut.
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Upon closing in mid-March, the tribes furloughed thousands of workers at their casinos, which generate millions of dollars in salaries and revenues in southeastern Connecticut. The two casinos reached their peak in the 2007 fiscal year when they paid the state an all-time high of $430 million in an ongoing slot-machine agreement, but that number is now expected to drop to $247 million in the current fiscal year that ends on June 30. The totals are also projected to drop further in each of the next three years as competition in the Northeast continues from casinos in Rhode Island, Massachusetts, and New York.
The two Connecticut casinos employ more than 12,000 workers when at peak operations, while many more are employed in the delivery of products and supplies to two of the world's largest gambling operations.
The state has had cordial relations with the tribes for more than 25 years under Govs. Lowell P. Weicker, John G. Rowland, M. Jodi Rell, Dannel P. Malloy and Lamont. But neither Malloy nor Lamont have been able to reach a final agreement on sports betting, despite behind-the-scenes negotiations.
Christopher Keating can be reached at ckeating@courant.com.
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State lawmakers are taking up several gambling related bills, including ones that would expand sports betting and another on a proposed East Windsor casino.
They were debated at a Public Safety and Security Committee hearing in the Legislative Office Building in Hartford on Tuesday, February 26.
One senate bill has been floated as a way to skirt federal approval to get Connecticut's third casino built in East Windsor.
Paul Formica, a state senator who represents New London and several towns in southeastern Connecticut, asked his colleagues to support that bill.
'That bill had a requirement for the secretary of the interior to weigh in regarding their approval – a requirement requiring that S.B. 11 seeks to remove as unnecessary,' Formica said. 'This is a Connecticut issue -- Connecticut revenue and Connecticut jobs – and politics in Washington shouldn't play any part in this particular decision.'
The Mashantucket Pequot and Mohegan tribes formed a joint bid to obtain a license for a commercial casino away from tribal land. Then-Gov. Dannel Malloy signed legislation in 2017 that gave this venture a gaming license to build the state's third casino.
But the project has been held up. It hasn't gotten federal approval from the Bureau of Indian Affairs, a division of the United States Department of the Interior. The state and the MMCT Venture originally thought they'd get an answer shortly after passing the law in 2017. But, the interior secretary didn't respond in time.
The tribes have filed a civil lawsuit against the Department of the Interior to get that approval.
There's also news reported by the Connecticut Mirror this week that Ryan Zinke, the former secretary of the interior, is being investigating by the Department of Justice over his refusal to approve amendments to the gaming compacts. Zinke resigned earlier this year. He's been accused of lying to investigators that made an inquiry into how he may have derailed the casino project.
'The federal investigators were the interior department's inspector general's office, which had done an investigation of how the casino petitions had been handled by the interior department,' Radelat said. 'Zinke was questioned about them and what they seem to be looking at now is whether he told the truth.'
Radelat said the proceedings are closed to the public and that they may have started back in December.
Rodney Butler, the chairman of the Mashantucket Pequot tribe, said Tuesday that he's 'anxious for that outcome, but we don't need to wait at the state level' for the conclusion of the federal grand jury investigation.
Yet, the MMCT Venture hasn't built the casino in the absence of federal approval. Butler said the project is 'shovel-ready' and the old structure that was on the land of the proposed third casino in East Windsor was demolished in March 2018.
The Mohegan compact with the state ended up being approved last May. The amendment to Connecticut's compact with the Mashantucket Pequots was never okay'd.
Meanwhile, the state legislature is taking up two proposed bills related to legalized sports betting this session.
One bill, would authorize sports betting and the other expands gambling, including sports betting and keno, to online platforms.
'Across the country, sports wagering is considered a casino game, which means if falls under the exclusivity portion of our agreements with the state,' Butler said.
Last May, the U.S. Supreme Court struck down an old federal ban on sports betting outside of Nevada. As a result, Connecticut now has the ability to authorize sports betting in the state. One complicating factor is that both tribes argue that the state would be violating the compacts should it authorize sports betting elsewhere. Breaking those compacts could come with significant risk to the state -- it could mean losing the cut Connecticut gets from slot machine revenue at the Foxwoods and Mohegan Sun casinos.
Craig Fishbein, a state representative out of Cheshire and Wallingford, disputes the exclusivity claim.
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'I don't think the compact has anything to do with sports wagering,' Fishbein said. 'The argument doesn't make sense to me because sports wagering wasn't legal at the time of the compact being entered into.'
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Butler said that both tribes have had ongoing dialogue with Governor Ned Lamont about their position on sports betting.
