Editorial: Diversity economy without casinos

Wednesday, December 19, 2007  

"The idea of expanding Connecticut's casino industry was raised by Arthur Wright, a University of Connecticut professor emeritus of economics, during a discussion of the 2008 issue of The Connecticut Economy journal which Wright edits. Wright proposed re-negotiating the state compact with the Mashantucket Pequot and Mohegan tribes that gives them the exclusive rights to slot machines in the state, and allowing two commercial casinos to be built to strengthen Connecticut's gaming industry.

Under the terms of the compact, the state receives 25 percent of all slot revenue, now totaling more than $400 million a year and growing annually. But the growth of that revenue stream could be jeopardized by competition in Massachusetts, New York and Rhode Island.

The Connecticut General Assembly erased the provisions of state law that allowed casinos to open here a few years ago amid concerns more casinos might be forthcoming as other Connecticut tribes win federal recognition. To reverse that now because surrounding states are looking to get into the act flies in the face of the rationale used to prevent more casinos here.

Serious competition from neighboring states will affect the two casino operations here in Eastern Connecticut, which now make up the region's largest employers with more than 20,000 workers, and that should be a reason for some concern.

But it's unlikely new casinos popping up would affect our casinos to a point where all those jobs and the revenue contributed to the state's economy would be jeopardized to the same scale as closing the sub base."

Get the Story:
Our view: Economy needs diversification, not more casinos (The Norwich Bulletin 12/18)