Mohegan Sun and Mashantucket Pequot tribes in Connecticut State have raised concerns over how revenue collected from casinos in the state should be handled. If the tribes’ proposal is favored by the governor and the General Assembly, it means that the construction of MGM’s gaming complex would be affected.
According to the proposal, which is spearheaded by the two native ethnic groups from the area, revenue that is collected from gaming resorts in the entire state should be channeled solely to the state. In other words, they do not want other states to receive even a dime of the total revenue from gaming complexes in Connecticut.
This is happening at a time the state’s constitution legislature is scheduled to meet this week to deliberate on among other things, the potential to legalize marijuana usage and gambling reforms that will outline how to make real money casino gambling sites.
MGM Resorts is currently stabling a $950 million complex in Springfield, which is seen by many as a way to tap the money that would only be of benefit to those staying at the north in Massachusetts.
After Dannel Malloy, the Governor issued a warning that multiple sources of revenue is required to fund his budget, the lawmakers have started to think of how that can be affected. There are high chances that the legislatures are contemplating on the construction of another casino within Connecticut to add to the 2 that are currently operational.
Mohegan and Mashantucket are the only Native American groups that are federally recognized in the whole state. As such, the only operational casinos are owned by the two tribes, Mohegan Sun and Foxwoods respectively.
The State of Connecticut like others is faced with cash challenges. On that note, looking for additional legitimate sources to increase revenue is common sense to Malloy, who has hinted to lawmakers to find ways that will make it possible for his administration to get the needed money to fund his February budget as well as grow the state’s revenue.
The Ideal Source
When faced with revenue deficits, much of the area on the northeast find it ideally fair to get more money from casinos or even issue licenses to new resort-style casinos that finally increase revenue legitimately.
Currently, Hartford faces a $1.4 billion deficit thus introducing another gaming complex would be the best way to offset a larger part of the debt.
The governor is worried if MGM Springfield is completed because the casino is likely to tap Hartford’s wealthy clientele, as well as her Massachusetts potentially retained customers. On the other hand, Mohegan Sun and Foxwoods mostly depend on their southeast clients, where they are based.
The Native American groups believe if the third casino if finally approved, they would be in a better position to challenge MGM, which is aiming to capitalize on the northern wealthy market.
Over the years since 1993, when the two southern casinos were licensed to operate, they have jointly injected over $7 billion from brick and mortar sector of gambling.
Though sovereign establishments, Mohegan Sun and Foxwoods paid the state $147.4 million and $118.4 million in 2015/2016 alone. However, if the number of visitor traveling to the southern part reduce, more than 9,300 jobs are likely to be lost.