MGM Resorts Battling Connecticut Tribes To Build Third Casino
MGM Resorts International is in the process of building a mega-casino resort in Springfield, Massachusetts which is expected to open to the public in 2017. MGM has faced a number of obstacles in constructing its Springfield casino and recently had to make significant changes to its design which could result in a delay for the overall project.
When MGM announced that it was proceeding with its Springfield casino resort, tribal casinos in Connecticut grew concerned that they would lose a significant percentage of their business to the MGM Springfield casino as they believe that their patrons would be willing to cross state-borders and gamble at the MGM facility.
Their concern was shared by the state of Connecticut and as a result, the tribal casinos proposed to construct a third and new casino near the Connecticut, Massachusetts border in an effort to prevent Connecticut gamblers from going into Springfield.
In order to build a casino near the state border, the tribes had to secure the right parcel of land and as per federal law tribal casinos are only allowed on the reservation. The state of Connecticut decided to make an exception and allot a portion of land near the border to the tribes to allow them to construct the third casino in Connecticut.
MGM Resorts wasn’t very happy with this proposal and the exceptions that the state government was making for the tribal casinos. MGM was looking forward to the additional business that it would generate from out-of-state gamblers and Connecticut was a part of that plan. MGM Resorts is now looking to challenge the Mashantucket Pequot and Mohegan tribes in Connecticut by throwing its hat into the ring and stating that it would also like to have the opportunity to construct a third casino in Connecticut.
MGM has filed a lawsuit alleging that the state’s gaming act breaches the mandate which requires fair competition for securing the license to build a third casino in the state. In a statement, MGM Resorts International Vice President Alan Feldman said
MGM is the right party to fight the Act, and it will continue to aggressively assert its constitutional right to open and fair competition
.
MGM is also building new casinos in Maryland and in Macau, China. The company has also expressed interest in setting up a new casino resort in Atlanta, Georgia. It is debatable as to whether MGM is really interested in building a casino in Connecticut or only looking to stop the tribes from opening a third casino and competing with its Springfield operations.
