News release from tribes:
The Mohegan and Mashantucket Pequot Tribes, in their continuing effort to protect Connecticut jobs and revenue, released a report today by gaming expert Dr. Clyde Barrow that shows the competitive bid process outlined in two House Bills will actually cost the state $85.6 million in annual revenue.
In addition, Dr. Barrow found that for the State of Connecticut to merely break even in terms of state revenue, a competitively bid third casino would need to generate $1.063 billion in gross gaming revenue annually. As the report states: “not a single commercial casino in the United States generates that level of gaming revenue.”
“The claim that Connecticut could get a quote ‘better deal’ through a competitive bid have been greatly exaggerated,” said Dr. Barrow. “In reality, the process would cost the state more than $85 million a year, and further worsen the state’s financial outlook.”
As Dr. Barrow’s report notes, existing compacts between the Mohegan and Mashantucket Pequot tribes and the State of Connecticut guarantee the State 25% of the slot revenue from Mohegan Sun and Foxwoods. Since the two casinos opened, the tribes have collectively contributed more than $7 billion to Connecticut.
On an annual basis, these payments total $267 million. If, however, the State of Connecticut authorizes an open bidding process that results in a non-tribal entity receiving a commercial gaming license, these annual payments from the Tribes could end.
If this new commercial casino was taxed at 25% of its gross gaming revenue, it would provide the State with approximately $180.2 million per year. Taking into consideration the loss of $267 million per year from Foxwoods and Mohegan Sun, Connecticut would thus lose approximately $85.6 million in annual revenue by violating the tribal compacts.
There is no math that makes Connecticut’s first commercial gaming enterprise work for the state if it’s not operated by the two federally recognized tribes,” continued Dr. Barrow. “For the State of Connecticut to merely break even in terms of state revenue, a competitively bid third casino would need to generate $1.063 billion in gross gaming revenue annually. There is not a single commercial casino in the United States generates that level of gaming revenue.”
MMCT Venture was created to preserve jobs and revenue in the state of Connecticut. To learn more, go to www.ctjobsmatter.com.