/ totositenet11's Library/ Notes/ The approval was followed by a proposal to set up another casino in the town of Bridgeport on behalf of MGM Resorts International.
The approval was followed by a proposal to set up another casino in the town of Bridgeport on behalf of MGM Resorts International.
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Lawmakers tried to push for more open competition last year, but to no avail. The situation heated up after MGM Resorts International won approval from Springfield, Massachusetts, to begin construction of a $960 million casino resort complex located just miles from Hartford, the capital of Connecticut.
The prospect of another casino being built so close has raised concerns that the tribe will take away potential customers from casinos operating in southeastern Connecticut, as the resort will drive to MGM Springfield when it opens in September 2018. This would cost Connecticut both its profits and jobs related to the gambling industry.
The two tribes proposed the joint construction of a gambling house in East Windsor, located on the outskirts of the reserve. The main problem here was that federal law allowed tribes to run gambling houses only within tribal lands, that is, protected areas. Nonetheless, tribes were allowed to build the site, expected to revitalize the local economy.
The bill, which will be the subject of next week's public hearing, may revoke the licenses of two tribes to build their gambling houses in the town of East Windsor. The purpose of this Bill is to strengthen competition because it involves a two-step process of bidding and choosing from among them.
Preparations are already underway for a $300 million tribal casino in East Windsor last week as two Connecticut tribes proceeded to demolish an old cinema at the site of a gambling house. However, their leaders confirmed that they have no intention of starting construction until the casino expansion problem is resolved. It is expected to be in late spring or early summer this year.
Meanwhile, the bill has already received support from delegates from New Haven and Bridgeport. One of the key provisions of the bill requires potential casino licensees to pay non-refundable license fees amounting to $50 million and contribute 25% of their total gambling income to the national economy each year.
Potential licensees will also have to cover 10% of their gross income from slot machines with funding for education-sharing subsidies to the region. The bill requires gambling houses to employ at least 2,000 employees in the community. Once the bill is approved, the Connecticut Department of Consumer Protection will begin accepting bids by January 2019. A public hearing on the bill will be held next Thursday.
