A revenue-sharing pact between the state and its two Native American tribes that operate casinos will not be affected if the two jointly open a third casino in Connecticut.
That’s the opinion of the federal Bureau of Indian Affairs. It ruled the casino’s agreements with the state, in which they share 25 percent of slots revenues in exchange for operating the only two casinos in the state, won’t be jeopardized if state law is changed to permit a third casino jointly owned and operated by the tribes.
A spokeswoman for Attorney General George Jepsen said his office had received copies of the BIA opinion and is currently reviewing them. She said, “It would be inappropriate to comment further at this time.”
The Mashantucket Pequots and Mohegans, through their joint venture MMCT, said securing the BIA ruling is a vital component of their efforts to build a third casino in Connecticut, aimed at fending off new competition from a Springfield MGM casino.
The tribes will use BIA’s language as the basis for a more complete legislative package they will send to the General Assembly next year, signaling their intent not to attempt to secure legal authority for a third casino before this year’s session ends next Wednesday, May 4.
The expansion comes because of MGM building a casino just over the state line in Springfield, Mass. MGM Executive Vice President Alan Feldman said in a statement the tribes are overstating the impact of the letter. He said, “[They] asked a very carefully, narrowly tailored question in order to receive a very carefully worded answer, and the BIA even goes so far as to basically say don’t rely too heavily on the answer we’re giving you.”
Feldman said the tribes should have asked the BIA to review the issue with great scrutiny, which he said will be required when the tribes seek final federal approval for the expansion. He accused them of being secretive throughout the process for a third casino.
The existing casino pacts were drafted in the 1990s, allowing the two federally recognized tribes exclusively to operate gaming facilities on their reservations in exchange for 25 percent of their slot machine revenue. For more than two decades, the tribes have contributed over $7 billion in revenue to the state.
In a statement, the tribes said the amendment language addresses concerns outlined last year by the Attorney General and ensures that, if the two tribes receive authorization to open a third casino the new facility would not affect their current agreements to pay 25 percent of their slot revenue from Foxwoods Resort Casino and Mohegan Sun to the state.
