Connecticut Files Motion To Dismiss MGM Lawsuit
The state of Connecticut decided to build a third casino and awarded the license to the Mashantucket Pequot and Mohegan tribes.
The state decided to permit a third casino in an effort to stop gamblers from Connecticut from traveling out of state and playing at neighboring casinos such as the $950 million MGM Springfield casino in Massachusetts.
MGM Springfield had earlier counted on poaching a steady flow of gamblers from Connecticut as the casino is not very far from the Connecticut border.
Now that Connecticut had decided to approve a third casino, MGM Resort executives were forced to rethink their strategy and marketing plans as the additional competition would cut into their estimated profits.
MGM Resorts wasn’t very happy with the decision made by the government of Connecticut and stated that the process to award a casino license was violated by the state gaming commission as there was no request for proposals made to check if there were any other providers who wanted to build the third casino in Connecticut. MGM Resorts decided to file a lawsuit against the state of Connecticut in an effort to slow down the construction process of the third casino. MGM filed its lawsuit by stating that
The exclusive, no-bid process violates the Equal Protection and Commerce Clauses of the United States Constitution.
The state of Connecticut decided that it had to protect its gambling industry as a study conducted by the Mashantucket Pequot and Mohegan tribes estimated that 9,300 employment opportunities could be lost due to competition from neighboring states and gambling revenues would decline.
There is also the fact that MGM Resorts is against the third casino mainly because it impacts its MGM Springfield casino revenue. Connecticut had filed a motion with the court to dismiss MGM’s lawsuit stating that if MGM is interested to construct a casino in Connecticut then it should go ahead and pursue that path.
MGM has opposed Connecticut’s motion to dismiss the case and stated that the gaming law in Connecticut was heavily in favor of the states tribes and stated in its filing that even if the company did apply for a casino license in Connecticut it would be
at a competitive disadvantage’ by virtue of the legislative endorsement and assistance from state agencies only the Preferred Tribes enjoy under the Act.
The MGM Springfield casino project has faced a number of setbacks during the last few months and Connecticut’s third casino will most likely open before the MGM Springfield facility goes live.
