Business

House passes multi-step process for new Connecticut casino

SUSAN HAIGH, Associated Press
HARTFORD, Conn. (AP) — The House of Representatives voted early Friday to create a multi-step process for possibly opening a new tribal casino that proponents contend will help combat out-of-state gambling competition and protect jobs at the two existing casinos in southeastern Connecticut.
Despite strong opinions voiced against the prospect of a third casino in the state, including from some southeastern Connecticut lawmakers, the bill passed on an 88-55 vote. It now moves to Gov. Dannel P. Malloy for his consideration.
Democratic Rep. Stephen Dargan, co-chairman of the General Assembly’s Public Safety Committee, acknowledged that this bill, unlike the original version, does not authorize more gambling. Rather, it requires the tribes to return to the legislature with a development agreement with a host community for lawmakers to consider. In the meantime, he said the bill sends a message to neighboring Springfield — where MGM Resorts plans to open new casino — that Connecticut is serious about protecting jobs.
“I think we’re taking a strong position stating how important jobs are,” Dargan said.
A consultant hired by the tribes, the Mashantucket Pequots and Mohegans, has warned that about 6,000 direct casino jobs at Foxwoods Resort Casino and Mohegan Sun and 3,000 indirect jobs in the southeastern region and elsewhere could be lost due to competition from MGM.
The bill is a retooled version of an original proposal that would have allowed the tribes to open up to three casinos to help combat out-of-state gambling competition. Attorney General George Jepsen warned the legislation could prompt legal challenges, risk the revenue sharing agreement between the tribes and the state and make it easier for other tribes that might receive federal recognition to open a casino.
The latest proposal allows the Mohegans and Mashantucket Pequots to enter into a development agreement with one host community. That deal would ultimately need federal and state legislative approval.
The tribes issued a joint statement expressing gratitude for the bill, which they hope Malloy will sign into law.
They said the bill will “begin a process by the Mohegan and Mashantucket Pequot Tribes to invest millions to identify the best site for a satellite gaming facility in north central Connecticut, and to work with state and federal officials to ensure the state and our two tribal governments are legally protected.”
Rep. John Scott, R-Groton, whose district includes a part of Ledyard where Foxwoods is located, urged his colleagues to oppose the bill. He warned that business at those casinos is already down and it has nothing to do with the planned Springfield facility.
“I’m not convinced that expanding gambling in other parts of the state is going to help eastern Connecticut where I come from,” he said, adding how he’s seen people in the region “blow their life savings” after gambling at the casinos.
Rep. Mike France, R-Ledyard, whose district includes both casinos, said he’s experienced nearly unanimous support from constituents for the bill, especially workers who’ve been employed at the two facilities for many years.
“They are very happy with their jobs at the casinos and see them as good employers that take care of them,” he said, adding how “this is the decision that needs to be made today.”

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