In a previous post, I suggested what was, at the time, a rediculous suggestion on casino expansion in CT. It was based on how things eventually turned out in Massachusetts. But it doesn’t seem so far fetched now. Matter of fact, the latest CT legislature bill resembles my silly suggestion. Let’s call it the “Massachusetts Model for Casino Expansion.” This is what I suggested a year ago:
- Set up a process for accepting license applications similar to Massachusetts.
- Begin the bidding process for both the Bridgeport casino & East Windsor Casino in the mix. We’ll call them the Southwest license and the Nithern license.
- This will stop the 25% guarantee on slots to the state from Mohegan Sun and Foxwoods, but later on, (hopefully) this will not be a problem due to two new casinos.
- Allow MMCT to bid for East Windsor & Bridgeport, as well as anyone else, such as MGM, CET, & Boyd. MGM couldn’t bid even if it wanted to on East Windsor because its Massachusetts license has a radius restriction on building new casinos nearby……there are few commercial operators willing to launch a casino between the new MGM Springfield and the tribes’ big destination casinos on the reservations, especially if it also meant matching the state’s revenue from those tribal casinos. So, because MMCT would be considered a company interested in a commercial casino in East Windsor, it would have to cover the new fee together (25% of table games & slot revenue.)
- If chosen, Mohegan & Pequot tribes would stop their deposit to the state coffers, but would now cover 25% of slots and table games at the East Windsor site. If they decide they aren’t interested, someone (but not MGM) will build a casino in northern CT, at the same 25% slots and table game status. (remember, the previous pact with the tribes covered 25% of only slot revenue)
- Meanwhile, all applications, similar to Massachusetts, will be accompanied by stringent background checks and $500,000 application fee (higher due to the inflation of 6 years). Eight companies were interested for the Springfield and Boston region casinos. An application fee of $400,000 immediately brought in over $3 million dollars in revenue before the process had begun!
- In the end, it seemed obvious to me that the MGC were leaning towards Wynn & MGM. I’m not suggesting the process be skewed toward our tribal casinos, but am established working relationship should go a long way compared to unknown relationships with commercial casino companies.
- The need for a casino in Bridgeport could change or be voted down. A south-western CT casino could eventually be a moot point, if CT decides it doesn’t want it any more. In Mass, Brockton & Rush Gaming were held hostage until the MGC dropped the Region C license due to the litigation troubles the Mashpee Wampanoags were going through.
- In the end, the two tribal casinos would be still standing alone, only the state of CT would have made extra revenue on the process.
So much for daydreaming. Next, I’ll dream about 99% video poker and 2/1 Blackjack as the expectation for the future.
Thats all for now.