by Steve Norton
CEO, Norton Management

Connecticut tribes 'days away' from unveiling casino site to compete with MGM Springfield | masslive.com

My comment:

Today's article include many salient facts, but adding a 4th casino to the Hartford/Springfield market makes little sense, when there is a larger market available on the Western side of the State; that would be the most convenient casino to the million- plus residents of Westchester, Orange and Putnam Counties in New York. Plus this location would also earn most of its revenues from citizens of another State. Where a 4th casino, serving greater Hartford, is going to further tax CT citizens, and will compete as much with the true destination casino resort facilities of Mohehgan Sun and Foxwoods, as it will with the closer MGM casino in Springfield.

I certainly respect what Connecticut and the two Tribal casinos have been able to accomplish in casino resort development, job creation and State revenue contributions. But now, after enjoying a 20-year casino monopoly in New England; both CT and RI are now faced with the reality that the adjacent state of Massachusetts now finally understands that casino gaming's benefits far outweigh it's negatives.

Over 35 years ago, I was invited to Connecticut to meet with Bridgeport area Legislators, and tell them about our successes at Resorts International, in Atlantic City; in turning another dying seaside resort town into a major casino destination.

And Massachusetts was contemplating casino gaming in the State, years before the Mashantucket Pequot Tribe made its deal with Connecticut for slot machines at Foxwoods. I was negotiating in the mid 1990's, as President of Argosy Gaming; for a riverboat casino on the Connecticut River, in Springfield. Then in 2001-04, I came back to MA, working with the Senate on a resort casino bill, that passed the Senate, only to be killed by an anti-gaming House Speaker. After that failure we came back wit a bill to put slot machines at race tracks, again loosing to a subsequent Speaker. Now the final Casino Legislation in MA has been stalled in Boston, killed in the South East by a Tribal effort, and the Springfield effort opposed by the two CT Tribes; who have benefited from MA residents spending at their casinos for 20 years.

But unless this casino is operated by the Mohegan and Foxwood Tribes, the State risks the 25 percent slot tax that these Tribal casinos provided.

Previously Representative Perone, has asked for a further study on adding another casino in Connecticut. Clearly a casino on the Western border with New York, is a far superior location; but serious questions have to be worked out. To place a Tribal casino on non reservation land, including areas currently under consideration; brings the Federal Government into play; as the property would have to be placed in "Trust" by the Feds. This would eliminate other bidders, and protect the current Tribal slot taxes, but could take years; and could be refused by the new Trump administration.

The quickest way for CT to proceed to save jobs and casino revenues, would be to allow a commercial casino on their Eastern border, which the Tribes could bid on; but the current Tribal tax would have to be renegotiated, and could cost the State in tax revenues, as the taxes from an Eastern casino might not offset the taxes lost from the Tribes, giving up their gaming monopoly.

Its a big mistake not to take several days and find the potential of a New Bedford casino market, compared to one on the New York border. A detailed report is not necessary to determine the demographic potential that would support a resort casino on the NY border versus one North of Hartford. Just a quick study of the ZIP code population and economic status in codes that are 25 and 50 miles from both sites, with adjustments for any of these ZIP codes that are also convenient to an existing or proposed casino. That is a quick way to evaluate the potential of similar sized facilities, with equal highway access and the same amenities. But a quick look at a map will tell you that a casino on the NY border, has more nearby population, and the closet gaming facility is Yonkers, on traffic burdened highways on the way to Manhattan. However a Greater Hartford casino has MGM Springfield, maybe 20 miles away, and will have to continually share much of their player base with two existing destination casinos, Mohegan Sun and Foxwoods. It's hard for me to understand how a Hartford casino combined with MGM, is not going to cost more jobs than just a single casino in Springfield.