MGM’s Real Intentions in Suing Connecticut

imagesMGM continues to pursue it’s litigation with the State of Connecticut concerning a third casino, saying it “… is the result of an illegal and unfair gaming act…” according to the Equal Protection Clause of the 14th Amendment.  Essentially, the 14th amendment addresses “Equal justice under law” and mostly refers to states rights against discrimination. According to MGM, this includes the discrimination of commercial competition.  When Foxwoods & Mohegan Sun were allowed to agree to a casino outside their tribal lands, should they have opened it up to the industry?

massachusetts-to-pilot-new-tool-to-limit-gambling-lossesYES, I say!  Take a page out of Massachusetts playbook, as follows:

  • Step 1 – Charge anyone interested the $400,000 application fee.
  • Step 2 – Quickly set up voting for community endorsements.
  • Step 3 – Whittle away those that Connecticut thinks are not in it’s best interest.
  • Step 4 – Pick the casino that they had in mind all along – like Massachusetts did with MGM Springfield & Wynn Everett.

Then everybody’s happy, right?  The process is done – the result is the same.

Basically, MGM is saying this pact denies other industry interests to build a casino in the Nutmeg state.  In 2006, MGM was looking to increase its brand recognition on the East Coast, and partnered in a relationship with Foxwoods. The MGM tower in 2008 at a cost of $700 million.

Fox Tower at Foxwoods

Fox Tower at Foxwoods – Originally the MGM Casino & Tower.

In 2008, MGM pulled out of its partnership.  According to then MGM spokeman Clark Dumont, MGM wanted to “avoid confusing consumers as it pursues a bid to build its own casino Springfield, Mass.  So, what is so different now?  If MGM is truly concerned for the state’s residents and rights of further casino industry commerce, wouldn’t a MGM casino built in CT now “confuse consumers?”

Of course. This legal strategy IS not only to confuse consumers, but DRAG out the beginning of Connecticut casino threat to MGM Springfield, and GAIN time for it’s already late opening in 2018.

Hypocrites – hiding their real intentions behind a smoke screen of the constitution for their own selfishness.  Their presence in CT with the Foxwoods partnership wasn’t good enough in 2008 – why do they want a chance now?

They really don’t!  They are scared that the CT satellite casino on the border will spoil their party – because the mighty MGM wants the ONLY party.  Hey MGM, have you noticed what’s happening west in New York State?

That’s all for now.

Binbin

Casino Economics Turns into Casino War in New England

Ok, I get it – when money is involved, friends turn into enemies – especially in the casino industry. The battle cry in New England seems to be “don’t shoot until you see the green in their wallets – going over the border!”  You’d think it was the beginning of WWIII – casino revenue is that important in the northeast.  As a review, recent developments include:

CONNECTICUT

  • Leading lawmakers propose up to three new casinos in the home state of Mohegan Sun and Foxwoods. One of the casinos could be run jointly by the two tribes.
  • Foxwoods is also slated to open a lot of retail with its Tanger Outlets shopping complex
  • Mohegan Sun announced plans for a second, 400-room hotel to open by 2016.

NEW HAMPSHIRE (Yes, New Hampshire…..again?)

Lawmakers are again considering allowing two casinos in the state because propsed Massachusetts casinos take a bite out of the state’s vital hospitality and tourism industries.

MAINE

Still calling for more casinos? A recent report suggests there are still opportunities in the state’s northern and southern extremities, even though Hollywood’s 24-hour experiment failed and caused the property to resume its old hours of operation.

MASSACHUSETTS (the big meany?)

  • MGM Resorts International is slated to break ground on an $800 million resort in Springfield
  • Penn National Gaming is set to open the Plainridge Park Casino, a 1,250-machine slot parlor at the harness racing track in Plainville, this June.
  • Wynn Resorts has set its sights on a 2017 opening for its $1.7 billion casino for the Boston area.
  • The Southeast license is still being sought – third Las Vegas-style casino in the state
  • The Mashpee Wampanoag tribe also hopes to build their own resort casino in the region.

RHODE ISLAND – Twin River Casino is purchasing the Newport Grand slot parlor, and building  a 150- to 250-room hotel.

VERMONT (Are you serious?) Yes – A Republican lawmaker has filed his near-perennial proposal to open a single casino in the Green Mountain State

And, if those stories aren’t telling, check out the tone of these latest headlines from all over New England:  (sorry for my sarcastic critiquing in italic = can’t help myself)

Growing competition, economy cost CT casinos $1.2B (this is still news?)

Twin River’s expansion puts pressure on Conn. casinos (as well as Plainridge Park)

Smoking seen as competitive edge for R.I. casinos  (Wow, smoking seen as a plus – what’s next as a game-changer?)

MOHEGAN SUN IS EXPANDING, UNVEILS PLANS FOR A SECOND HOTEL Over 1,000 permanent and construction jobs to be added or retained (that’s a good thing, right – yet people can’t understand how it helps?)

Foxwoods, Mohegan Sun Face Tough Future (Really?)

NE states face off in race for casino cash (What do the brackets look like?)

Connecticut Tribes Propose Casino Partnership to Battle Competition (Once at odds, now working together on the odds)

Schaghticoke Tribe Mulls Gambling Hall in Kent, CT (the CT pie gets smaller)

Connecticut Public Skeptical of More Casinos (Mr. Steele, any comment?)

Massachusetts key driver in New England ‘Cold War’ over casino dollars (I hope the Mass driving is better for the region than what I see on I-95)

Connecticut tribe wants casino near NY border (and maybe an iron curtain with only one toll booth)

That’s all for now.

Binbin