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Hurdles Spring Up For Casino Expansion

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Hurdles Spring Up For Casino Expansion

As Foxwoods and Mohegan Sun meet with residents of two towns that are possible sites for the state's third casino, pressure is mounting to slow down any expansion or scrap it entirely.

There is early support for proposed legislation that calls for a more open, competitive framework for both choosing the casino operator and where the expansion should take place.

"The tribes really have had a monopoly on this," said Rep. Michael DiMassa, D-West Haven, who introduced the bill. "What this really is trying to do is open up this process a little more, make it a little more transparent."

In 2015, the legislature gave the Mashantucket Pequot and Mohegan tribes the right to search for a site in north-central Connecticut for a jointly operated third casino. The casino, which still needs final legislative approval, is intended to combat the competitive threat of a casino under construction in nearby Springfield. The casino is seen by supporters as a way to preserve jobs and state revenues generated by the casino industry.

But the search has dragged out for more than a year, with critics pounding at the tribes for conducting their search in secret and disclosing few details of what they envision.

As the move in the legislature gears up, an unusual coalition of religious leaders from across the political spectrum has banded together to fight an expansion of casino gambling.

"We are united in our belief that another casino in Connecticut is a bad idea," the Rev. Dwight Dean, of the Windsor Locks Congregational Church, said, at a press conference at the legislative office building Tuesday. "Gambling contributes to the loss of a healthy biblical work ethic. It replaces the reliance upon hard work, savings and prudence in spending with greed, luck and chance as the preferred route to fulfillment and prosperity."

Peter Wolfgang, executive director of the conservative Family Institute of Connecticut, said he felt compelled to join the coalition even though the majority of its organizations are from the religious left.

Expanding casinos on nontribal property is "such a threat to family life," Wolfgang said.

The group includes representatives and lobbyists from the Connecticut Catholic Public Affairs Conference, the Connecticut Conference of the United Church of Christ, the New England Synod of the Evangelical Lutheran Church in America and the Farmington Valley American Muslim Center, among others.

Members of the coalition say there is already a glut of casinos in the Northeast and more gambling options will only bring more crime to the region – and more unhappiness to problem gamblers. The group wants a statewide referendum on the issue – something that is not currently possibly under the state Constitution.

Andrew Doba, a spokesman for the tribes, said crime is lower today in the two towns surrounding Mohegan Sun and Foxwoods than when the casinos opened 20 years ago.

"The real concern for the state is funding education and social services without the revenue the tribes have contributed to the state year in and year out," Doba said.

He added: "One of the greatest social issues a family can face is unemployment. If we're not successful, people are going to lose their jobs."

Earlier this month, the Mashantucket Pequots and Mohegans – longtime rivals who formed a joint venture for the casino project – announced that East Windsor and Windsor Locks were the two finalist towns. Community meetings are being held this week in both towns.

DiMassa, the West Haven Democrat, said the process should be opened up to all potential proposals for casinos. That, he said, would better determine what would best benefit the state and its taxpayers.

"Let them all come to the table, and let them submit proposals," DiMassa said. "We can't be restrictive. We have to look at all the options."

DiMassa said he favors clearer parameters, such as a $500 million minimum investment and a $50 million licensing fee before construction. The tribes have said they expect to spend $200 million to $300 million.

DiMassa has drawn early support from two Democratic legislators from Bridgeport — Reps. Christopher Rosario and Ezequiel Santiago.

"It's not like we're trying to stop a casino," Rosario said. "If it happens in north-central Connecticut, fine. If it happens in Norwalk, fine. We just want to be part of the conversation."

One option that hasn't been considered is establishing multiple casino sites, rather than just one, Rosario said.

Santiago said Bridgeport's pari-mutuel betting business has suffered with the growth of casinos. A closed dog racing track in Bridgeport could be redeveloped into a casino gaming site.

"I just want to know all the options and we're not having that conversation right now," Santiago said.

Rep. Roland Lemar, a New Haven Democrat who has introduced a bill similar to DiMassa's, would permit new commercial casinos in the state and impose a tax of 25 percent on both slots and table games. The state now receives a 25 percent cut of slot revenue from Foxwoods and Mohegan Sun.

Opening up the state to an operator other than the Mashantucket Pequots or Mohegans could force drastic changes to the original agreements that gave the tribes the exclusive right to operate casinos in Connecticut on their reservations and the state's cut of slot revenue.

MGM Resorts International, the developer of the Springfield casino and a harsh critic of how possible casino expansion is unfolding in Connecticut, praised the efforts by the legislators.

"These legislators have it right, and they are proposing what Connecticut should have done from day one: put in place a process that is fair, open, transparent, reliable, and competitive," said Alan Feldman, executive vice president at MGM Resorts.

MGM has said it would be interested in developing a casino in Connecticut, with southwestern Connecticut being the most promising area.

"That's how Connecticut wins – with a process that allows all qualified bidders to compete and the state to get the best deal. It is hands down the best way for the state to maximize the number of jobs that can be created, and the amount of gaming revenue that can be generated."

Doba said the legislation that is proposed is "not necessary" because there is nothing in state law that prevents another casino operator from approaching the state for a license.

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