Tribal headache for Connecticut; Wynn, Adelson eye New Jersey


Proposed new rules that would make it easier for tribes to gain federal recognition could have a seismic effect on the casino business in Connecticut. Three potentially recognized tribes could vie for as many as four new casinos. One says “four” because the Schaghticokes are split into two factions, the Schaghticoke Indian Tribe and the rival Schaghticoke Tribal Nation, both of which are seeking recognition. A plethora of new, casino-seeking tribes would upset the applecart that is the state’s longstanding relationship with the Mashantucket Pequot and Mohegan tribes. Small wonder that Gov. Dannel Malloy (D) is personally lobbying President Barack Obama (D) against the “Carcieri fix” that would make all these new tribes possible. Incidentally, one of them — the Eastern Pequots — was in talks with Donald Trump to build a casino when its federal recognition was revoked a decade ago.

* Steve Wynn and Sheldon Adelson are both being tipped as possible developers of northern New Jersey casinos, as Assembly Speaker Vincent Prieto (D) continues to hold out for a casino-expansion bill that allows new stevewynnoperators into the state. State Senate President Stephen Sweeney (D) is holding fast in his insistence that only extant Atlantic City operators should be allowed to develop the two new casinos. Now, Wynn or Adelson could buy a current Atlantic City casino and get around the Sweeney ban that way, but I don’t see that happening, do you? Sweeney, for one, was unimpressed by the assertion of Wynn’s interest. “Steve Wynn left New Jersey. He said a lot of bad things and he walked away,” said the lawmaker. (“Corrupt and stupid” were two of the epithets Wynn threw at Atlantic City’s government.)

“You want to be able to have someone who wants to come in and put a first-class entertainment destination and casino. That is what we want. We don’t really want someone to come in and put convenience gaming,” Prieto responded. Assemblyman Ralph Caputo (D) seconded Prieto’s emotion, saying, “Why would we exclude a person like Steve Wynn? I’d be so disappointed if we put a resolution through that excluded people of his caliber.”

Sweeney, pointing to the proximity of Adelson’s Sands Bethlehem, warned of “cherry-picking” by outsiders, stating “you have to support businesses that stayed here, invested here, took a risk here.” He also added the current operators have already been through the regulatory process, unlike the prospective newcomers. Prieto and Sweeney, who favored adding three and one casinos respectively, have come together to agree upon two. However, Sweeney’s animus toward Jersey City Mayor Steve Fulop, who hopes to land a $4.5 billion megaresort brainstormed by shoe mogul Paul Fireman, seems to be driving his insistence upon in-state casino operators. The casino bill could wind up being an undercard on the 2017 election ballot, which is seen as a Sweeney-vs.-Fulop brawl for the governor’s mansion.

chris-christieGov. Chris Christie‘s contribution to the discussion has been mainly to advocate a tax rate in the 30% range, which is less than either house of the Legislature has proposed, although lawmakers are aware that too-high taxes could result in new casinos that are “slots in a box,” as Prieto puts it. At the moment it’s a certainty that the issue will have to be put to a supermajority vote in the next Lege but Prieto says getting to 60% of either house will be “an easy lift.”

* Las Vegas Strip casinos set an all-time high for revenue last year. So how come they keep pouting that “It’s not like 2007”?

This entry was posted in Atlantic City, Donald Trump, Economy, Foxwoods, Mohegan Sun, Pennsylvania, Politics, Sheldon Adelson, Steve Wynn, The Strip, Tribal. Bookmark the permalink.