A report commissioned by a would-be developer of a third casino in Connecticut indicates a “temporary” casino in Greater Hartford could help stem the losses projected when MGM Springfield opens in the fall of 2018.
This past October, an estimate from the state’s Office of Fiscal Analysis indicated Connecticut could lose as much as $68.3 million a year in revenue starting in fiscal 2019, once MGM Springfield casino was open for business.
In a detailed analysis provided by letter to Tony Ravosa, managing member of Silver Lane Partners, which is proposing an East Hartford casino, CBRE Inc. of Philadelphia estimates that a temporary Hartford-area casino housing 1,250 slot machines would yield total “year one” slots win of $148.3 million, with revenue return to the state (through the 25 percent gaming tax) of $37.1 million.
Approximately 83 percent of the $148 million would be displaced revenue from the two existing Tribal casinos, Mohegan Sun and Foxwoods Resort Casino, with the remainder – 17 percent, or $25.2 million – derived from new “incremental gaming win.” The new money would come from new patrons from central and western Connecticut, Western Massachusetts, and overnight hotel guests in the Greater Hartford region, CBRE reports.
Explaining why SLP commissioned the report, Ravosa said via email, “We have long maintained that ‘speed to market’ matters in responding to the competitive threat posed by MGM. Simply put, we believe it would be a huge mistake for the tribes and state to allow MGM to gain a head start and unchallenged initial foothold in the Greater Hartford market – even for a brief period of time. The further analysis undertaken by CBRE reaffirms this.”
Ravosa suggests state leaders and the Mohegan and Mashantucket tribes, which are in the process of determining which proposals for a third casino will move forward, consider authorizing a temporary casino.
