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    Monday, April 29, 2024

    What's the plan to mitigate impact of Mass. casinos?

    It is time for Connecticut's tribal casinos to make their play. The Mohegan and Mashantucket Pequot tribes, operators of the Mohegan Sun and Foxwoods Resort casinos, have indicated they will look for the state legislature's help in formulating a plan to mitigate the impact of the opening of casinos in Massachusetts.

    The two casinos - having seen their gaming revenues plunge due to the double whammy of the recession and increased competition in nearby states - will take a major hit when Massachusetts residents soon have in-state casinos to attend.

    The loss of patrons from Massachusetts will continue a trend in which more of the business at Foxwoods and Mohegan Sun comes from Connecticut residents, reducing the economic benefits.

    Rather than circulating money from out-of-staters into the Connecticut economy and state coffers, the casinos are increasingly recirculating money from Connecticut residents.

    Will it be worth the state's while to toss the tribes a legislative lifeline? That is impossible to say, of course, until lawmakers and the governor are presented with options.

    Recent comments by Chuck Bunnel, the Mohegan tribe's chief of staff, suggest a strategy to first document the severity of the expected economic impact from competition in Massachusetts and New York, also planning a new round of casino construction. The tribes will make the case that this is a jobs issue. Employment at the two casinos, once north of 21,000 jobs, is under 13,000. Employment could dramatically drop further due to new competition. The many businesses providing supplies and services to the casinos will also see declines.

    Under the state compact that gives the tribes exclusive rights to operate casinos, 25 percent of slot revenues flow to the state, with revenue peaking at $430.5 million in 2007. The state expects slot proceeds to fall to $191 million in fiscal year 2017-18, when casinos in Massachusetts open.

    There has been preliminary discussion of allowing a third Connecticut casino, jointly operated by the two tribes, to open along Interstate 91 north of Hartford, in hopes of reducing the number of potential Connecticut patrons attending the new casino in Springfield, Mass.

    Such a proposal, or others that may surface, will require substantial debate and evaluation before legislators reach a policy decision, which is why the sooner detailed discussions begin, the better.

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