A financial slump at two tribal-run casinos is contributing to budget woes for Connecticut, which has seen its annual share of gambling revenue drop in recent years by more than $100 million.
Under compacts signed with the tribes, the state receives a quarter of the slot-machine revenue from the Foxwoods Resort Casino and Mohegan Sun. The money topped out at $430 million in 2007 before a steady decline brought on by the economic downturn and new competition.
The state's comptroller and budget director have cited weak casino revenue as a factor in gloomy budget projections for the state.
While the budget woes revealed this week have more to do with slumping tax revenue and growing Medicaid costs, Gov. Dannel Malloy said officials are very concerned about the casinos' struggles.