by Steve Norton
CEO, Norton Management

General Assembly To Take Up Third Casino Expansion Bill - Hartford Courant

Senator John Fanfara has indicated that His committee's Legislation would open up the casino bidding to Commercial gaming companies, as well as the CT Tribes.

What I have previously found difficult to comprehend, if this battle is really about jobs and revenues; 

for the State and the Tribes; is why pick a site that is going to have to compete with a near $billion casino in Springfield and two multi $billion destination resorts at Foxwoods and Mohegan Sun. And the Tribal casinos are only 15 to 20 minutes further from Hartford, than Springfield and MGM. And a much larger under served group of casino patrons, a million plus New Yorkers; are on the Western border of Connecticut, with easy access by I-95, I-84 and the Merritt Parkway. And the nearest gaming competition, is a slots only race track at Yonkers; much further from Westchester, than the CT border.

Yet the proposed mini Tribal casino, in East Windsor, would be almost exclusively taxing CT citizens; and most likely proposed to harm MGM, than save the most jobs and revenues for the existing Tribal casinos and the State. And the East Windsor casino would damage Massachusetts taxes, a State that has been providing an estimated $ billion a year to the CT Tribal casinos, for over 20 years.

And when you compare the attractions at the two Tribal casinos, to MGM; you realize that many Hartford residents will drive the extra 15 minutes, to reach destination casinos, that offer far more gaming positions, hotel rooms, restaurants and entertainment. Plus they offer golf courses, a convention hall, an outlet mall, an arena, ice skating rink and a proposed indoor water park.

And considering there are still questions about the Federal Governments willingness to place "Land in Trust" for the proposed casino, and law suits from area residents and MGM; the opening could be delayed indefinitely.

Just look as the Wampanoag Tribe's delays in Taunton, MA; a process still fighting local law suits; in spite of already having Federal approval that placed the site "In Trust" and a Compact negotiated with the State of Massachusetts.

The State risks loosing $240 million in revenue sharing, from the Tribes; but a destination casino on the Western border; if taxed like Pennsylvania, could produce more taxes than that; while also providing more jobs, than Mohegan and Foxwoods will loose, because of new MGM competition. And the NY border location, would generate the great majority of revenues from New Yorkers, rather than further taxing CT citizens at an East Windsor casino. And a destination resort in Bridgeport or other Western destination, will create a lot more out of state tourism, helping area hotels, restaurants and retail.

Attorney General Jepson has raised questions about a Tribal casino, not located on Reservation land; and the Legislature is considering other options to use casino gaming to raise taxes and employ CT residents, while greatly expanding State tourism.

35 years ago, I visited Bridgeport, to meet with area Legislators and explain our success in Atlantic City; in saving a dying beach resort. But it took another dozen years for the Mashantucket Pequot Tribe to negotiate a deal with the State, offering 25 percent of the slot win, for a CT gaming exclusive; at their Foxwood's Reservation.

This new Legislation is a forward step, and even though the Tribes might want to renegotiate their compacts, they would find it difficult to stop all of the 25 percent slot share; as the State and local communities provide many services to the Tribes.

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My comment:

Connecticut Legislators have indicated that Fairfield voters have no interest in housing a resort casino; but another County, Litchfield is adjacent to Putnam and Westchester Counties and also convenient to other parts of NY State, that have no nearby gaming. There are also many lakes, meaning a destination casino resort could include dramatic golf, and the County has the closest skiing to NY City. I-84 would be the preferred Interstate to reach NY residents, whose closest gaming is slot machines at Yonkers racetrack.

Clyde Barrow's study for the CT Tribes, said even with a win of $720 million, MGM's estimate for a Western location, the State would loose as much as $85 million annually, if the Tribes stopped their revenue share, and the new casino was taxed at 25%. But if the new casino was taxed at 35%, the State would break even. But, I believe the Tribes would still owe the State some casino revenue share; to cover the many assistance's provided by CT and several local communities. Using Barrow's 25% tax, he claims that a new casino would need to win over $1 billion; indicating that no US casino reaches that level. I would suggest he check the Seminole Hard Rock Casino Resort in Tampa, or the Win Star World Casino and Resort in Oklahoma, with 7,400 slot machines, a hundred table games in a 600,000 sq. ft casino. I believe both exceed a $ billion annually and there could be other Tribal casinos in California.

With destination resort amenities and star entertainment; this casino would also draw from NY City.

Economically a Western location brings much more revenue to the State than building a mini casino in East Windsor, that will compete with MGM, but also take substantial business from the two current Tribal casinos. And the real beauty of a Western location, is that the supporting casino and resort revenue comes primarily from another state; not a further burden on Greater Hartford. That translates to much more out of state tourism, which will benefit other hotels and hospitality businesses in Litchfield and Fairfield Counties.

The deal with the Tribes, will require the Federal Government to place the East Windsor "Land in Trust", which the Trump Administration is studying. And like the Wampanoag Tribe in Taunton, MA, even with Federal approval, and a compact with Massachusetts, local law suits have stalled the project for over a year.

The easier, more prudent path for CT, is to open the State for bids from other gaming operators, including the CT Tribes.