A study, paid for by Connecticut’s two tribal casinos, estimates out-of-state competition could soon divert $703 million a year from Mohegan Sun and Foxwoods.
The two are seeking to bolster their case for legislation that would allow three new gaming sites within the state, as a way to fight back against new facilities in Massachusetts.
Author of the report, Dr. Clyde Barrow, said job losses are inevitable. “With a $703 million revenue decline, the two casinos in Connecticut will have to eliminate approximately 5,800 jobs by 2019,” he told reporters at a news conference. Barrow is director of the New England Gaming Research Project.
Barrow added that the jobs losses will not stop there. As Foxwoods and Mohegan Sun begin to buy fewer supplies and services from their surrounding communities, there will be a ripple effect.
He estimates the eventual wider impact could mean the loss of up to 9,300 jobs.
The MashantucketPequots and the Mohegans have said they want to collaborate on a new casino somewhere on the I-91 corridor north of Hartford. This would be an attempt to stop Connecticut residents from driving to the planned MGM casino in downtown Springfield.
Barrow said his analysis shows it’s a workable plan. "When you actually map out drive time distances and convenience, there’s a very strong propensity for people along with I-91 and I-84 corridor to travel to the MGM Springfield, which really accounts for the majority of the damage that will be done," he said. "This is money that is certainly in play, that is available to be captured or recaptured by a potential satellite facility."
Some potential host communities aren’t so enthusiastic. On Monday, officials in Windsor passed a resolution opposing any casino gambling in the town, citing the potential burden of problem gambling, and saying gaming is not a sustainable economic strategy.
