Operator News

US – MGM puts forward proposal for its own Connecticut casino

By Phil - 19 September 2017

MGM Resorts International and Seaview Bridgeport have joined together to create MGM Bridgeport, to be located in Bridgeport, Connecticut.

The moves follows MGM’s failure in the courts to stop state approved plans for a third casino in Connecticut in East Windsor, to be operated by MMCT Venture, a 50/50 Joint Venture Project shared by the state’s existing casino operators by, LLC, a joint venture of the Mashantucket Pequot and Mohegan tribes who operate Foxwoods and Mohegan Sun.

MGM Bridgeport with create jobs in a variety of professions including construction, hospitality, finance, engineering, operations, marketing and information technology. Once approved by the Connecticut legislature, it will constitute more than a half billion dollar investment in Connecticut’s tourism infrastructure.

With casino gambling currently limited to the two federal Indian reservations, MGM would not be allowed to build a casino in Bridgeport under current laws.
The plans for MGM Bridgeport include a 100,000 sq. ft. gaming floor with 2,000 slot machines, 160 table games, a 700-seat theater, a 300-room hotel, five restaurants, six bars and retail.
MGM said the casino would create 7,000 new jobs in Bridgeport area and, if approved by state legislators, would give the state $50m in licensing fees this year.

Jim Murren, Chairman and Chief Executive Officer of MGM Resorts, said: “We welcome the opportunity to work closely with Seaview Bridgeport LLC to create a magnificent new center of energy and vitality in Bridgeport. In the coming days, we will share our ideas and plans with the people of Connecticut and with policy makers in the city and across the state. MGM Bridgeport promises to be a pivotal development that will jumpstart job growth and economic expansion in Connecticut. As a central component of the breakthrough Bridgeport Harbor initiative, MGM Bridgeport will emerge, advancing efforts to realize the potential of Connecticut’s largest city.

“Our track-record reflects that is what we have done in Maryland, Michigan and Massachusetts. And that is precisely what we will do in Connecticut. Ours is a partnership for progress that will bring jobs and produce economic benefits.”

Robert Christoph, Founder and Chairman of the Miami Beach based RCI Group, added: “Seaview Bridgeport LLC is coming into sharper focus with each passing day, moving forward to realize the potential that we recognized and have been working diligently to achieve since 2000. Through the years, our progress has been buffeted by recession, but we have been firmly committed to our investment and to the promise and potential of Seaview Bridgeport LLC. The transformation development that is Seaview Bridgeport LLC will be strengthened immeasurably by the alliance with MGM. We look forward to securing required legislative approvals so that this critical private investment of over a half billion dollars may proceed without delay. This project presents the legislative leaders with an opportunity to bring new revenues to the state budget, in the form of $50m in licensing fees, while at the same time creating over 5,000 new jobs for the state. MGM Bridgeport, is just the type of private investment that caused the state of Connecticut and the city of Bridgeport to support the Bridgeport development in the first instance.”

MGM’s proposal has been slammed by spokesman for the two tribes, Andrew Doba, who described MGM move as reflecting ‘a pattern of dishonesty.’

“Authorisation of this facility would violate the existing compacts between the two tribes and the state which would immediately end the slot payments that currently sends the state hundreds of million a year in much need revenue,’’ Mr. Doba said.

Governor Dannel Malloy added: “They [MGM] admit in their own answers to questions that this would violate our agreement with the tribal nations, so over the next two years, that would have negative impact to the tune of almost $500m on the state should they move forward. I can’t imagine entering into an agreement with any entity that would endanger our agreement with the tribal nations that in the current biennium budget under negotiation and discussion could cause a shortfall of a half billion dollars.”