Casino giants traded elbows Thursday in a public hearing in Connecticut over the possibility of a third casino in that state in which MGM showed up in force to protect its investment in MGM Springfield.
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MGM showed up in force to a public hearing in Connecticut on Thursday to fight a rival tribal gaming company's attempt to build a new casino in East Windsor to compete against MGM Springfield.
The company's message was simple: If the Nutmeg State wants a third casino, it'll get the most lucrative arrangement by allowing prospective developers to compete over rights to build and operate.
"It's competition that drives up (state revenue from casinos)," said Uri Clinton, senior vice president and legal counsel for MGM Resorts International. "If you have multiple offers on the table, then you'll know you got the best deal."
MGM and several other major casino operators would no doubt submit bids, according to Clinton, and Connecticut could collect a $15 million, pay-to-play fee from each.
If MGM were to outbid competitors for a contract to build Connecticut's third casino, East Windsor would be left in the lurch.
The company's contract with Springfield forbids building a new facility within 50 miles of MGM Springfield, slated for completion in 2018 -- a fact which irked state Rep. Timothy Larson of East Hartford.
"Someone from Las Vegas is telling you they don't want to be in your town but they want to tell you how to run your town," Larson said. "It's insulting."
Clinton and Larson spoke during a hearing of the Public Safety and Security Committee at the State House in Hartford concerning competing bill proposals to change gaming law in Connecticut.
One, S.B. 957, would secure Mohegan Sun's monopoly on gaming in Connecticut by permitting MMCT, the joint executive of the tribal operators of Mohegan Sun and Foxwoods to remodel the former Showcase Cinemas theater along I-91 in East Windsor into a 100,000-square-foot casino.
That deal would guarantee a $3 million initial payment from MMCT to East Windsor and at least $3 million per year in additional revenue. MMCT estimates the project would generate about $5.5 million per year in addition to the $3 million set payment.
Connecticut would also collect a 25 percent tax on table and slot revenue from the East Windsor facility.
Clinton said the state can do much better, citing the $60 million Mohegan Sun committed to Palmer in a competitive bid to establish its casino there and the 49 percent tax on slot revenue Massachusetts collects on the Plainridge Park Casino in Plainville -- another product of a competitive bid process.
Additionally, according to Clinton, MGM's plans for the state would be far grander. If his company were to win a competitive bid to build Connecticut's third casino, the facility would be double the size of the one proposed for East Windsor, offer more entertainment and dining options and feature an 800-room hotel.
He's supporting the opposing bill, S.B. 7239, proposing to open up the process to competition.
Schaghticoke Tribal Nation Chief Richard L. Velky teamed up with Clinton and MGM in pushing for 7239.
"We're certain that we can do a lot better than what (MMCT) is offering Connecticut," "We're looking at the southwestern part of the state. The market there is five times greater than where they're looking north of Hartford."
He added, "We're saying, 'Just give us an opportunity.' If the state was to give us the right to go through the (competitive bidding) process, I would have three major contenders of gaming sitting at the table with me tomorrow."
Mohegan Tribal Council Chairman Kevin Brown described MMCT's proposal as a defensive effort to "blunt the impact of MGM Springfield, recapture jobs and safeguard our state's economy."
A study found that MGM Springfield stands to cost Connecticut 9,300 jobs.
The East Windsor facility could be running by 2018, while the opening up of a competitive bid process would delay a third casino from appearing in for Connecticut considerably longer period, Brown argued.
"We know this for certain: thousands of jobs are going to go away and $70 million in state slot revenue will disappear immediately" if the third casino founders while MGM Springfield opens across the border, Brown said.
The East Windsor Select Board has supported the MMCT proposal and members appeared Thursday to speak at the hearing on behalf of the town.
East Windsor First Selectman Bob Maynard said the town intends to spend $1 million from its $3 million bounty on hiring additional police and to use additional portions of the total on more firefighters, emergency medical technicians and Spanish teachers for town schools.
"We've really looked into all the impacts," Maynard said. "We're quite prepared for this."
Larson was not alone in strongly supporting the proposed bill, but many others on the committee appeared split in their commentary.
Both bills are up for consideration this legislative session.