Tribes, Connecticut lawmakers discuss possible new casinos

UNCASVILLE, Conn. (AP) – The two tribes that own Connecticut’s casino resorts have been holding discussions with state lawmakers about opening new, smaller casinos near state boundaries with Massachusetts and New York to keep up with competition in the neighboring states, officials said Thursday.

The discussions involving representatives from both the Mohegans and the Mashantucket Pequots have focused on crafting legislation that could authorize new gambling halls. Rep. Steve Dargan, the co-chairman of the General Assembly’s Public Safety Committee, said a bill could be ready as soon as Tuesday, but it remains uncertain how detailed the proposed legislation will be.

His committee, which handles gambling issues, faces a March 19 deadline to forward legislation for the full legislature to consider.

Dargan said there have been discussions of as many as three of these new facilities. He said lawmakers are motivated to help the tribes, which provide millions of dollars to state in slot machine revenues and provide thousands of jobs in southeastern Connecticut.

“We understand that, one, there’s competition from other states and two, the tribes have been good corporate citizens to the state of Connecticut,” Dargan said.

The two federally recognized tribes currently have exclusive rights to offer casino-style gambling in Connecticut under an agreement that provides the state with 25 percent of the slot-machine revenue.

The tribe’s casinos, Mohegan Sun and Foxwoods Resort Casino, have been struggling to reverse slumps in a regional gambling market that is going to become more competitive with planned construction of new properties in Massachusetts and New York.

“This ultimately is more of an issue of preserving tax revenue and jobs,” said Mitchell Etess, chief executive of the Mohegan Tribal Gaming Authority.

One proposal calls for a small-scale casino along Interstate 91 north of Hartford that might have 1,800 slot machines, some table games and perhaps some restaurants, Etess said. He said it would have very limited amenities compared to Mohegan Sun or Foxwoods, but enough to entice visitors who might otherwise travel north to Springfield, Massachusetts, where MGM Resorts International is planning to open an $800 million casino.

Kevin Brown, the Mohegan’s chairman, said the tribes are not limiting the proposal to only one facility, saying there are highways connecting Connecticut with neighboring states that would be obvious places to open facilities to “intercept any sort of convenience gambler.”

Brown spoke at a news conference on Thursday, announcing plans to open a second hotel at Mohegan Sun. Casino executives say the project will allow them to recapture the nearly 500,000 room nights turned away in 2014. The Earth Hotel is expected to open in the fall of 2016, at a cost of $120 million.

Brown said economic studies have shown that demand for gambling is strong. He said the drop in business is due to increased competition, prompting the Mohegans to expand and improve the tribe’s offerings, including non-gaming attractions such as convention center space, restaurants and the new hotel.

Gov. Dannel P. Malloy, who attended Thursday’s ceremony, said he is aware of the economic pressure the two tribes face from the neighboring casinos and will keep an open mind about what legislation, if any lawmakers send to his desk this session.

“I’ll listen, I’ll watch, I’ll hear what’s going on and what the proposal looks like and we’ll make a decision at some point in the future,” said the Democrat.

––––

Associated Press writer Michael Melia in Hartford, Connecticut, contributed to this report.