Attorney General George Jepsen has advised Connecticut legislators to test the market for opening Connecticut to commercial casinos. He seems to think it wouldn’t jeopardize $260 million in slots revenue the state expects to collect this year under the exclusive deal with the tribal owners of Foxwoods Resort Casino and the Mohegan Sun.
But this is a questionable tactic in my mind, and so does Clyde Barrow.
Who is Clyde Barrow?
Dr. Clyde Barrow is considered a gaming industry specialist. In a comprehensive study, he stated that a new Connecticut casino (referring to the joint venture between the Mohegans & Pequots) would recapture 46 percent of the 9,300 jobs and $337 million in revenue that would otherwise be lost to out-of-state competition, especially that from Massachusetts.
Casino Consultant, Clyde Barrow
Dr. Barrow goes on to say recently, “Precedent has already been set. According to Barrow, “in October of 2010, the St. Regis Mohawk Tribal Council “stopped sharing revenue from the casino along New York’s northern border with the state, claiming the exclusivity provisions of its gambling compact has been violated…..In other words: if the State of Connecticut grants a commercial gaming license to any operator other than the State’s two Indian tribes under an open competitive bid process, then the tribe’s current combined revenue sharing payments of $267 million annually could cease immediately (Connecticut Division of Special Revenue 2017).”
Connecticut’s Tribal Tax Revenue
Foxwoods Resort Casino has operated a Class III casino under a compact with the State of Connecticut since February 15, 1992 and Mohegan Sun Casino has operated a Class III casino under a compact with the State of Connecticut since October 12, 1996. Connecticut’s two tribes have a combined Gross Gaming Revenue that is the 4th largest in the United States. The top three are California (where 62 of the 109 California tribes own 69 casinos), Florida (2 tribes operate and own 8 casinos) and Washington state (32 tribal casinos owned by 23 tribes). Remember, only two tribes with only two casinos in the third smallest US state.
But all that revenue from slots at both tribal casinos would be lost with a competitive process for the 4th casino in Bridgeport.
An artist’s rendering of the proposed MGM Bridgeport casino.(Image: MGM Resorts International)
As reported by Brian Hallenbeck, the Day staff writer, Dr. Barrow said “Assuming the third Connecticut casino gets built — and few consider that a slam dunk — a fourth, competitively bid casino would have to generate nearly $1.1 billion in annual gross gaming revenues to offset what the state would lose when the Mashantucket Pequot and Mohegan tribes stop sharing their casinos’ slot-machine revenues, a new report concludes. And the probability of a Bridgeport casino pulling in that kind of cash “is almost zero [because] not a single commercial casino in the United States currently generates that level of gross gaming revenue,,”
Let’s look at a few other considerations:
The traffic from New York of prospective gamblers will cause studies and improvements in the dangerous, time consuming highway that is I-95. Improved infrastructure should be paid for by any perspective Bridgeport Casino project, or that will cut into Connecticut’s tax revenue, diminishing the already smaller revenue expected without the tribal tax revenue.
I-95 traffic congestion on SW CT.
Potential developments in New York, where a constitutional moratorium on New York City casinos expires in December 2022, also threaten the success of a Bridgeport casino, Barrow contends. “There is nothing to prevent the State of New York from locating a new casino even closer to the Connecticut border, where it could intercept casino traffic from New York City and capture traffic from Fairfield County. The anticipated traffic from New York City will never materialize for a Bridgeport casino because New York can easily and quickly pre-empt a new competitive threat from Connecticut by building an even more lavish casino that is more convenient to New York City customers.”
If newly built New York Casinos and NYC close Empire and Resorts World Casinos are already cutting into the tribal revenue, what kind of a terrible impact would a border war with New York AND Massachusetts bring without the CT tribal revenue when the exclusive pact with the tribes is broken.
I believe Dr. Barrow’s analysis. But maybe MGM International also believes he’s right. I guess that’s how stalling tactics, and MGM is real good at not showing its hand. Meanwhile, MGM Springfield continues – full speed ahead, while Connecticut is still waiting for in first gear.
“That’s all I can stands, cuz I can’t stands n’more!” – Popeye
Alright, now you did it. MGM, you even got Popeye all upset with your latest Connecticut propaganda!
When I first started NETimeGambling.com, all I wanted was two things: 1) to supply the latest news and information about New England’s Casinos, and 2) that these seven casinos would behave in a way that would benefit New England Tourism.
After almost five years, I now see it’s all about the almighty dollar, no matter what the economic needs of the residents are. How naive of me!
And how naive are Bridgeport residents to think that MGM’s prime purpose with this casino mumbo-jumbo is the well-being of Bridgeport. Yes, it will help the jobless plight of the city big-time, while bringing in the usual negative culprits, according to State Senator Tony Hwang:
Property owners see their home values decrease.
Communities see increases in crime, traffic, drunk and impaired driving.
Local businesses see people spend money in the casino instead of in the local economy.
Vulnerable residents — seniors, low-income residents, and the addicted — are enticed by the glitz of the casino and often succumb to their lure.
But you can say that about all casinos with vast differences in those negative effects from casino to casino. In Plainville, home to Plainridge Park Casino in Massachusetts, the Plainville police report seeing little of the expected increase due to the new casino.
But the scope of this bombshell dropped on CT must be seen from all sides. Let’s look at the whole picture, shall we?
Casino.org says, “Although Connecticut’s two tribal operators believe it’s part of a very elaborate bluff, an artist’s rendering of the proposed MGM Bridgeport casino, which the gaming operator says will bring 2,000 permanent jobs and a tax revenue stream of $316 million per year, has been created and presented to the state’s power brokers. (Image: MGM Resorts International)
Proposal After Proposal
MGM Resorts International’s announced this week plans for a casino and hotel on the banks of the Yellow Mill River. Three decades ago, the Carpenter Technology plant in Bridgeport’s East End shut its doors, costing 600 jobs. But, MGM has offered plans to build a new casino with 2,000 slot machines, 160 table games, a 700-seat theater, a 300-room hotel, restaurants and retail shops.
This is not a new idea. Large gaming companies, such as Harrah’s (now Caesars), Mirage Resorts (now MGM), Carnival Hotels & Casinos, Circus Circus Enterprises (now part of MGM), Trump Hotels & Casino Resorts and the Mashantucket Pequots all had letters of intent submitted for expanded gambling in 1995, which was defeated in a lop-sided vote in the legislature. The Bridgeport casino Steelpointe Harbor location is the same area where President Donald Trump proposed a casino in the 1990s. So what’s different now?
The New Proposal – Murren’s Ties
MGM Resorts CEO Jim Murren, left, with Bridgeport Mayor Joe Ganim (Dan Haar / The Hartford Courant)
Dan Haar of the Hartford Courant quoted CEO of MGM Resorts International Jim Murren as saying “I know Bridgeport’s very historic, important roots and it’s heartbreaking to see what’s happened over the last 60 years.” Mr. Murren is heartbroken over the dire straits in Bridgeport. Mr. Haar then goes on to explain Murren’s ties to the area, having been “born here.” Be careful, reading this article may cause cavities from all the sweet sentiment involved – MGM Bridgeport Casino Solves A Lot Of Problems
Remember how naive anyone, including Bridgeport and the surrounding residents, might act if someone knocked on the door and promised the answer to all their economic woes. But, if Bridgeport is SO important to MGM and Mr. Murren emotionally, consider this.
The new casino in Springfield Massachusetts that MGM is building gives the city of Springfield a billion-dollar MGM casino, but Bridgeport–with ready access to the New York City, Long Island, and Fairfield/Westchester County markets, is only being offered warrants a half-billion dollar facility. Also, Springfield, as the host city, will receive payments of $25 million a year, and the proposal calls for Bridgeport to be paid only $8 million. If Jim Murren is altruistically concerned for his hometown’s economy, shouldn’t he be “showing them the money”
Location, Location, Location
Supposedly, Bridgeport is prime property to help the city and state out of budget woes, because it is close to the city that never sleeps – NYC. The Big Apple would be the answer CT is looking for concerning the state’s budget deficit and Bridgeport’s jobless residents.
Seen from the site, the P.T. Barnum ferry returns from Long Island, at distance. (Dan Haar / The Hartford Courant)
FYI – An hour away from Bridgeport there’s Empire City in Yonkers, which gets a lot of advertising and seems to be doing quite well. Then there is Resorts World, which is right within the 5 boroughs in Queens near Aqueduct Raceway and JFK airport. Monticello Hotel & Casino, and Resorts World Catskills (which opens in 2018, months before MGM Springfield) are similar distances to Bridgeport as the CT tribal casinos, which will pose a threat to anything MGM builds in Bridgeport.
Empire City Casino, Yonkers, NY
New York’s new casinos north of NYC still struggle to bring in the traffic they anticipated, and they would be more competition for MGM Springfield. Considering the third casino in CT on the CT/MA border, New York State casinos, and Wynn in Boston taking away VIP’s from all of New England’s casinos, one has to see the importance of a MGM property in Bridgeport – not for the betterment of CT residents, but especially for a worried MGM in their northeast expansion.
Speaking of Traffic…
Raise your hands out there if you have driven I-95 from New Haven to the New York State line, vice versa. C’mon, raise ’em up.
That’s right – it’s horrible. For commuters, it’s not just driving to work – it’s a non-contact (or sometimes contact) sport. Well guess how that traffic will be if a casino is built in Bridgeport. Traffic concerns will be exponentially worse – not even considering the 40-mile parking lot it will become on the weekends. MGM has offered no financial help for the already inadequate infrastructure of I-95. An example of what to look forward to is MGM’s beautiful MGM National Harbor around Washing D.C. When it opened, vehicular traffic to the doubled from 90,000 cars, buses and trucks a week to an astounding 180,000, according to Courtland Milloy of the Washington Post. “The casino has a pretty slick traffic plan once you get on the property, but off-site, it’s nothing more than a nightmare,” so his article says. Expect the same on I-95.
The Cart Before the Horse
There’s one little thing in the way of this proposal. Right now it would be illegal to build a casino – and heartless to build the hopes of the people of Bridgeport. James Murren said the casino “can help to turn the economic tide of this state [CT]” The plan requires a change in state law that limits the right to build casinos to the Mashantucket Pequot and Mohegan tribes, owners of Foxwoods and Mohegan Sun. CT Governor Dannel Malloy said “if the state violates the compact with the tribes, it could lose nearly $500 million over the next two years in revenue from the tribes’ two casinos.” The state gets 25 percent of the slot machine revenue from Foxwoods and Mohegan Sun under the compact. It’s difficult to have to decide between the future economic well-fare of Bridgeport, and the future economic revenue for Connecticut, which Bridgeport would receive benefits from.
MGM, the Casino Industry Powerhouse
Finally, let’s not forget MGM International is a business – a very good business. Jim Murren has built MGM to a giant in the casino and entertainment industry. It’s power and financial backing is not to be taken lightly. It’s very difficult to not have a love-hate relationship with MGM International. Here’s how I see it:
They offer some of the greatest Hotels & Casinos in America. (Love it)
They single-handedly started the demise of the tradition free parking on the Las Vegas Parking (Hate it)
They offer some of the best entertainment venues in the country (Love it)
Their lack of concern for gambling rules and limits makes it difficult for low to mid rollers (Hate it)
They will help the city of Springfield rise from it’s ashes, with the watchful eye of the Massachusetts Gaming Commission (Love it)
They have said it themselves – MGM is an entertainment company, not a casino company. This does not bode well for cities like Bridgeport looking to raise revenue (Hate it)
MGM does create jobs with their casino/resorts.(Love it)
MGM seems to be a bully when pushing for casinos in states by excessive lobbying, negative television, mail propaganda, and time consuming tactics to get what they want, not necessarily what’s good for those involved. (Hate it)
MGM seems intent on keeping Borgata in Atlantic City the same, as the #1 AC property.(Love it)
MGM Supported anti-casino expansion groups in CT over the proposed 3rd casino in East Windsor, only now, having to face them supporting casino expansion in CT. (Hate it)
The Final Draw
It is still illegal. Massive changes and considerations are involved. MGM wants you to think it’s the only answer. The fact is their answer is a stalling tactic on the never-ending suit with the state of CT – rejected by the courts twice already.
Once upon a time, owner of the New England Patriots, Robert Kraft, was close to moving the Patriots to Hartford. It was a scam to get more out of Massachusetts interests to build Gillette Stadium and keep them there. There are still many that hold a grudge for using CT residents as pawns in his own scheme.
Mr. Murren, please don’t do the same to Connecticut. People will remember, and MGM Springfield may end up getting the brunt of the Nutmeg State’s ire and resentment.