Tribes: East Windsor casino a long way away

Rendering | MMCT A rendering of the proposed Tribal Winds Casino in East Windsor.

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By Eric Bedner, Journal Inquirer

Despite telling lawmakers repeatedly they would build their Tribal Winds Casino in East Windsor in spite of ongoing litigation, tribal leaders said Tuesday the project still is years from being constructed.

Tribal leaders and representatives were admonished by some members of the legislature’s Public Safety and Security Committee during a sports gambling and casino expansion informational forum at the Legislative Office Building on Tuesday.

Rep. Joseph Verrengia, D-West Hartford, the House chairman of the committee, repeatedly questioned tribal representatives about why the East Windsor facility hasn’t yet been built, despite the tribes knowing MGM was going to sue.

“It’s safe to say the litigation was expected, and if not, the promise was to still move forward through litigation to build a casino in East Windsor in 24 months,” he said. “This is a partnership. This is a tribal-state partnership, and the state is upholding their end.”

Verrengia added that about $25 million per year should be coming to the state from the Tribal Winds Casino.

“The state is losing out on this partnership in that regard,” he said. “We’re talking about allowing for another casino with partners who haven’t come through on the first one.”

The lengthy legal battle delaying the East Windsor casino has caused the project to be scaled back to reflect the saturated gambling market in the region, Rodney Butler, chairman of the Mashantucket Pequot Tribal Council, said.

“Now that we’re seeing some stabilization, we’re refining the plans slightly,” he said, adding that the Tribal Winds Casino is still set to cost between $200 million and $300 million, but not as close to $300 million as initially planned.

Another obstacle has been a local zoning dispute that has been litigated and now revolves around the sale of alcohol at the casino, an issue the tribal joint venture MMCT claims is being resolved.

“At every stage, MMCT and the tribes have fought litigation successfully and we will continue to do so,” lawyer Aaron Bayer, partner at Wiggin and Dana, said. “The zoning litigation is at an end.”

Butler said there have been conversations with town officials in East Windsor, and the zoning issue should be set within three to five months.

“Then we should be good to go at that point, barring any other challenges to the zoning concerns,” Butler said. “Anticipating that we get planning and zoning cleared up in the next three to five months, we’re shoveling ground in the next three to five months.”

Regardless of when construction actually starts, he said, it still will be another 18 to 24 months before the facility opens.

“We’ve always said from when we get shovels in the ground, it’s an 18- to 24-(month) build,” Butler said.

Tribal representatives were unable to say Tuesday when construction would begin.

Butler added, however, that the tribes already have made a substantial investment in East Windsor and have no intention of walking away.

“We have $20 million into this,” he said. “No one’s more intent on resolving this than us.”

Sticking point for sports betting

Complicating the overall discussion of casino expansion and sports gambling is the tribes’ assertion that they hold exclusive rights to sports gambling in the state.

“The tribe has been clear that sports gaming is casino gaming” and therefore falls under the exclusive agreements the tribes currently have with the state, Ray Pineault, regional president of Mohegan Gaming and Entertainment, said.

Tribal leaders said that if the state doesn’t grant them exclusive rights to sports gambling, they would cut off their annual contribution of about $250 million from casino revenue, or sue, or both.

Tribal executives also expect further litigation from MGM if the state doesn’t allow open bidding for future casino expansion, which has been talked about in Bridgeport.

One way or another, the state is likely to face litigation with any new gambling laws.

“You’re going to get sued, period,” Butler said.

Verrengia said that if the tribes continue to assert they hold exclusive rights to sports gambling, it would be difficult to get a sports betting bill passed through the legislature.

Rep. Kurt Vail, R-Stafford, argued that sports betting is more aligned with horse racing, which the tribes do not hold exclusive rights to, because gamblers are placing bets on events outside the walls of a casino.

“You guys should certainly have a piece of that pie, but I don’t think you should have exclusivity,” Vail told tribal representatives.

One comprehensive gambling bill being considered by lawmakers would allow the tribes to operate retail and online sports betting, create a Bridgeport casino operated by MMCT, and establish tribal “entertainment zones” in Hartford, New Haven, and another to-be-determined location.

Entertainment zones “are really just glorified sports betting facilities,” Butler said, comparing them to Bobby V’s restaurants in Stamford and Windsor Locks.

The proposal calls for a minimum investment of $100 million in Bridgeport and extending alcohol sale hours to 4 a.m.

Because of the number of casinos in the Northeast and the success of Mohegan Sun and Foxwoods Resort Casino, tribal leaders say there is not enough demand to justify building another giant resort-style casino in the state.

“There’s no question that the Northeast has gotten saturated,” Anthony Casida, senior vice president of business development for Mohegan Gaming and Entertainment, said, adding that MGM Springfield is under performing.

Bryan Hayes, vice president of analytics and slot operations at Foxwoods Resort Casino, estimated the state stands to gain more than $38 million over five years through sports betting, about $85 million over five years for internet gambling, and about $10.4 million over five years for expanding alcohol sale hours to 4 a.m.