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    Editorials
    Friday, May 03, 2024

    Voting to protect jobs, now the legal fight

    Assuming Gov. Dannel P. Malloy signs the bill authorizing a third tribally run casino in the state — he should — the debate next moves to the courts. Before moving to that issue, however, it is fair to recognize the good work the local delegation did to protect Connecticut jobs.

    While it is hardly a wonderful thing to see a third casino approved in the state, sanctioning it was the logical response to the reality that the MGM Springfield Casino will open next year.

    MGM will siphon away patrons from the Greater Hartford region who now travel to the Mohegan Sun and Foxwoods Resort casinos in this region. And, to some extent, it will do so regardless of what happens in Connecticut.

    But allowing the Mohegan and Mashantucket tribes to jointly open a commercial casino in East Windsor, with 25 percent of all gaming revenues flowing back to Connecticut, will mitigate the damage, keeping some of those patrons spending their entertainment dollars in the state.

    While attendance in the gaming halls at Foxwoods and Mohegan Sun can be expected to drop due to the new competition, a third tribal-operated casino in East Windsor will benefit the tribal enterprises and allow cross-promotions. The bottom line is that the business operations of both tribes will be stronger because of this deal, providing greater resources to diversify their entertainment offerings locally and protecting jobs.

    Local state Sens. Paul Formica, R-East Lyme, Cathy Osten, D-Sprague (co-chairs of the Appropriations Committee), Art Linares of Westbrook and Heather Somers of Groton all backed the proposal as it passed that chamber, 24-12.

    In the House, which passed the bill in the early hours of Wednesday morning, the 103-46 vote was surprisingly decisive, with universal and bipartisan support from the local delegation.

    Voting in favor were Reps. Christine Conley, D-Groton; Joseph de la Cruz, D-Groton; Emmett Riley, D-Norwich; Devin Carney, R-Old Saybrook; Holly Cheeseman, R-East Lyme; Doug Dubitsky, R-Chaplin; Kevin Skulczyck, R-Griswold; Chris Soto, D-New London; Diana Urban, D-North Stonington; Mike France, R-Ledyard, and Kathleen McCarty, R-Waterford.

    Admittedly, there was some sausage making to line up votes.

    Another piece of legislation won approval that will allow mixed-martial arts (ie. cage fighting) events at arenas in the state, a spectacle heretofore restricted to the casinos. This newspaper has consistently opposed this barbaric enterprise, but it was largely a symbolic stance since the fights continued and have grown mainstream as TV entertainment. It’s hard to fault lawmakers for wanting, in return for their support of the casino bill, their hometown arenas to get the business MMA generates.

    Also, the available licenses for off-track betting parlors expand from 18 to 24.

    As for the pending court fight, expect MGM, which will do all it can to block or at least delay an East Windsor casino, to claim that awarding the tribally run casino operation off reservation land violates their right to equal protection and the Commerce Clause of the U.S. Constitution, which gives Congress the authority to regulate commerce among the states.

    The legal issues are nuanced and complex.

    There is the question of standing. MGM’s agreement with Massachusetts would not have allowed it to compete for constructing a casino as close as East Windsor. And Connecticut will argue it had no obligation to invite competition for a casino elsewhere in the state.

    Connecticut has a special relationship with the federally recognized and sovereign tribes. Under a compact between the tribes and the state, the tribal casinos are allowed to have slot machines and receive exclusive rights to operate casinos in Connecticut. In return, the tribal casinos send 25 percent of gross slot revenues to the state. Connecticut has collected $7 billion under the arrangement and projects to receive $266 million in the coming fiscal year. Allowing a bid process that led to an entity other than the tribes opening a casino would have meant the end of those revenues.

    Attorney General George Jepsen will be sure to ask the federal courts to consider this unique relationship when evaluating the constitutional issues. Additionally, courts have given states wide latitude in regulating gambling.

    While the legal outcome is uncertain, what is certain is that jobs would have been lost had the legislature ceded the Great Hartford gaming market to MGM in Springfield. It made the right choice in standing up for Connecticut jobs.

    The Day editorial board meets with political, business and community leaders to formulate editorial viewpoints. It is composed of President and Publisher Timothy Dwyer, Executive Editor Izaskun E. Larraneta, Owen Poole, copy editor, and Lisa McGinley, retired deputy managing editor. The board operates independently from The Day newsroom.

    Comment threads are monitored for 48 hours after publication and then closed.