MGM and Tribes at Odds Over Proposed New Casino in Connecticut

A plan announced by MGM Resorts International to build a new casino in Bridgeport, Connecticut has two Indian tribes crying foul and claiming that the proposal would violate the existing gambling compact entered into between the tribes and state officials.

The Mashantucket Pequot and Mohegan tribes stated that MGM is getting ahead of itself by announcing its vision for the $675 million casino, as approval by Gov. Dannel P. Malloy and the state legislature is not a foregone conclusion. Citing the gambling compact that pays 25% of slot machine revenue from the tribes' popular Foxwoods and Mohegan Sun casinos to the state, the tribes argue that casino development in Connecticut is their exclusive right.

"I can't imagine entering into an agreement with any entity that would endanger our agreement with the tribal nations," Gov. Malloy told Abc7ny.com.

Another MGM Casino

MGM's proposed casino in Bridgeport would be on the waterfront at Long Island Sound. The blueprints call for a hotel featuring 300 rooms, a theatre that seats 700, retail shops, restaurants, and 2,000 slot machines and 160  table games in the casino.

The benefits to the state, according to MGM, would be licensing fees totaling $50 million, $12.5 million annually to Bridgeport and surrounding communities, and over 7,000 new jobs for area residents. MGM chairman and CEO James Murren, a native of Bridgeport, stated that the new casino "can help to turn the economic tide" of Connecticut.

Ground has already been broken for a $1 billion MGM casino in Springfield, Massachusetts, which could siphon players from the tribal casinos in CT. The Mashantucket Pequot and Mohegan tribes received state approval to jointly operate a new casino in East Windsor, CT. They are awaiting federal approval.

MGM filed a lawsuit against Connecticut over the approval process that awarded the East Windsor casino to the tribes, but lost. A federal appeals court also ruled against the Las Vegas-based casino chain. East Windsor is less than half an hour away from MGM's new Springfield casino.

With big money at stake from casino gambling revenue, we likely have not heard the last of this spat.