Tribe Threatens Lawsuit if Legislature Doesn't Allow Bids for Third Casino

Schaghticoke Tribal Nation is threatening to sue the State of Connecticut if the General Assembly approves and Gov. Dannel Malloy signs a proposal that would block bidders from having a chance to run the state's first commercial casino.

The Kent-based tribe argues all suitors should have an opportunity to operate a gaming facility since the casino would be operated off tribal land.

"Once they leave the reservation and it becomes a commercial licensed gaming anybody, iit should be open to the citizens," said Richard Velky, the tribe's chief, during a news conference at the Connecticut State Capitol.

There are still far more questions than answers about whether the state will even authorize a third casino.

So far the State Senate has approved a proposal that would allow the Mashantucket and Mohegan tribes to jointly operate a casino off of their reservations, though that bill's fate in the House is uncertain.

Senate President Pro Tem Martin Looney said he thinks the House should follow suit with the Senate bill because it's a bill that would provide familiar circumstances for the state.

"I would hope they would see the merits of dealing with the group that we have a track record with and understanding that we’ve had a good relationship over the years and we have a compact. As the governor has pointed out that would be a more secure way to go without a leap into the unknown," Looney said during an interview.

Since the Schaghticoke Tribal Nation is not recognized by the federal government, it couldn't use the otherwise expected path of the Indian Gaming Act to establish a casino, meaning it would have to use whatever the commercial channel would look like. That could cost potentially hundreds of millions of dollars, money the tribe says it has in the form of financial backers.

Another wrinkle is that the tribe says it would want to operate the tribe away from its reservation in Northwest Connecticut. Velky said his intention is that the tribe would help run the casino, even if it was controlled by a commercial operator, like MGM, Harrah's or another casino corporation.

"How would we not benefit?” Velky asked.

House and Senate Democrats each want to see a third casino opened in Connecticut as a way to raise revenue, though Speaker of the House Joe Aresimowicz says the Democrats in the chamber aren't yet united around a particular proposal.

"Every option is open," Aresimowicz said.

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