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US – Tribes sign third Connecticut casino deal

By - 16 September 2015

Having been rival operators for two decades, the Mashantucket Pequot and Mohegan tribes have signed an historic agreement to work in tandem to build a third casino in north central Connecticut.

Striving to stop the flow of customers to the $800m property being built just over the border in Springfield by MGM, the two tribes have vowed to select a venue by November.

The two tribes operate two of the biggest casinos in the United States in Foxwoods and Mohegan Sun. Three localities on the Interstate 91 corridor, close to Springfield, have expressed interest in hosting a casino in East Hartford, East Windsor and Enfield.

Rodney Butler, Chairman of the Mashantucket Pequot Tribal Council, said: ” This is a proud moment because it emphasizes how we are working for a common goal in mind: the welfare of Connecticut’s workforce. This agreement marks a new chapter in the history between our sovereign nations. While our past may have been marked by conflict and competition, our present and future will be defined by cooperation. With a united front, we can and will defend the thousands of jobs that are under attack. We will always be competitors. But it is here, now, that we are coming together to combat an outside threat for the greater good of the state we call home.”

The two tribes won the right to operate the third Connecticut casino on private land in controversial legislation passed by the General Assembly three months ago.

Kevin Brown, Chairman of the Mohegan Tribal Council, said: “With our partnership solidified, we can begin the hard work of protecting both Connecticut jobs and the critically important revenue our organizations provide to the state. Outside interests have made it perfectly clear that their business model depends on taking money and jobs from our state. We’re not going to let that happen without a fight. We all know the reality. We have to come back to these halls to get final approval and that is driven by the legislative calendar and, so, by the turn of the year, we have to come to grips with who the best candidate would be.”

The plan is to build a casino with 2,000 slots and 100 to 150 tables, with an estimated cost of $200m to $300m. The aim is to open before MGM in Springfield.

Senator Timothy Larson added: “These guys have been true to their word. They are marching along. They have always stressed a sense of urgency.”

MGM, who is taking legal action over the closed bidding process for an Indian casino on private land, said the signing of a political and economic alliance between the Mashantucket Pequot and Mohegan tribes of Connecticut was ‘the result of an illegal and unfair gaming act.’

Alan Feldman, Executive Vice President of MGM Resorts International, said: “Last week’s announcement was a continuation of an unconstitutional process that does not allow anyone else to make proposals that could result in greater benefits for the state of Connecticut, its residents, and consumers. This is the result of a flawed, closed-door deal that shuts out voters in the approval process, eliminates all competition and doesn’t provide any protections for workers.”

The statement follows a legal challenge launched in August when MGM presented a two-pronged constitutional argument, claiming the act violates the Equal Protection Clause of the 14th Amendment, and that it violates the Constitution’s Commerce Clause.

It claims the law violates equal protection by limiting development to the Mohegan and Mashantucket Pequot tribes to the exclusion of other racial and national groups, and that it violates the commerce agreement by discriminating against out-of-state competitors. Legislation allows Mohegan Sun and Foxwoods tribal gaming rights on American Indian reservations, however the new venue would be on state land, which MGM claims it preferential treatment of the tribes illegal.

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