Casinos in Massachusetts could spell trouble for Connecticut.
The Bay State is close to approving a plan that would add three casinos, including one in Western Massachusetts, not far from the border and Mohegan Sun has plans for a casino in Palmer if approved.
"We know that there's a certain number of people who will go to a casino that's near them and we wanted to be able to be part of that," Mohegan Sun CEO Mitchell Etess said.
For years, Connecticut has had the lock on gaming with Foxwoods and Mohegan Sun and the southwestern region of the state has seen a boost in the economy with the added workforce and tourism impact.
In fact, a big portion of gamers come from Massachusetts, with 3.1 million Bay Staters visiting Foxwoods last year.
That is more than double the number of Connecticut visitors, according to the UMass Dartmouth study, Place Your Bet III. The same report says 1.9 million Massachusetts residents visited Mohegan Sun.
“I've got to be honest with you, I'm a little concerned for us,” Montville Mayor Joseph Jaskiewicz said.
Montville has benefited greatly from Mohegan Sun’s presence.
There have been downsides, like an increase in crime, but the positives have outweighed the negatives.
Fifteen years ago, the casino brought in about 10,000 jobs, installed a water line from the Thames River and has been a community partner.
Retail development was spurred because of the casino.
“What we relied on was not the people going to the casinos, but the workers that work there,” Jaskiewicz said.
Now the mayor fears some of those jobs could go north, along with some of the money.
Many of the employees take advantage of local businesses throughout Montville and Ledyard and surrounding towns.
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Last year, the state collected $346 million from the casinos, according to the same UMass study.
State Rep. Tom Reynolds shares the concern.
“The impact will probably be immediate and significant,” Reynolds said. “That is not only a concern for the casinos and the state's share of casino revenue but it’s also a concern for other tourist entities in the region.”
Reynolds added that there are already plans in place to counteract what’s going on to the north, including a major investment in statewide tourism.
The worry is real.
The nation’s second largest casino market, Atlantic City, saw a big drop off in gamers over the last several years.
While some of that has been due to the economy, much of the impact is because of increased competition at newer casinos in nearby Pennsylvania and Delaware.
Mohegan and Foxwoods have expanded over the years, trying to stay current and competitive.
Even though Mohegan has plans for a casino in Massachusetts, they are confident their Connecticut presence is unique enough to keep people coming back.
“The reality is, is that you cannot duplicate this place,” Etess said. “There’s only one Mohegan Sun."
Mayor Jaskiewicz added that if the casinos weren’t in Connecticut, his town would be a lot worse off.
Foxwoods would not comment on the story until a deal is finalized in Massachusetts.