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In its motion, Interior argues that the Indian Gaming Regulatory Act cited by MGM is not relevant to the case because the nations are not looking to build a casino on tribal lands.
MGM admits that its hopes to siphon loyal Foxwoods and Mohegan Sun gamblers across the border were overly optimistic.
The two federally recognized tribes aren't willing to trade their already approved joint venture in East Windsor for the rights to a Bridgeport casino.
Mohegan Sun is the 11th largest employer in the state, the report said, with Foxwoods 12th.
But a spokesman for Gov. Ned Lamont said the proposed bill "falls short of what the governor wants for Bridgeport."
Only after receiving a full commercial casino license could Empire City also be licensed for sports betting.
The Schaghticokes are making a final attempt at gaining federal recognition, which if granted could ultimately lead to a casino in Fairfield County.
Highway tolls and whether or not to expand state-sanctioned gambling are still unresolved.
The proposal "puts the state at increased and immediate litigation risk from multiple parties," according to a spokesperson for Gov. Ned Lamont.
The money is meant to help offset the state’s regulatory costs for Tribal Winds Casino, the complex that MMCT Venture plans to build in East Windsor.
The suit alleged that the agency failed to take action on approving the East Windsor facility due to pressure from MGM Resorts and Republican lawmakers in Nevada.
“Today is a great day for the Mashantucket Pequot Tribal Nation and the state of Connecticut, especially given our 400-year history together,” Rodney Butler, chairman of the Mashantucket Pequot Tribal Nation, said.
One would establish an open-bidding process for a new casino – most likely in Bridgeport – while the other would ease the way for the construction of a tribes-operated casino in East Windsor.
The tribes operating Mohegan Sun and Foxwoods remain adamant that they will not participate in the proposed open bidding process, and that the cancellation of their compact with the state will cost Connecticut billions of dollars in lost revenue.