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Senior Vice President of Resort Operations Jason Guyot will serve as interim CEO as a search for John James' permanent replacement gets underway.
Uncertainty over just how much demand there is for more casino gambling in the region was cited as a factor in the decision.
Murren's efforts in Springfield and Yonkers have yet to produce stellar results.
MGM admits that its hopes to siphon loyal Foxwoods and Mohegan Sun gamblers across the border were overly optimistic.
As slots revenue declines, efforts by the tribes to expand across the state face obstacles.
East Windsor leaders say the town could see approximately $8.5 million per year from property taxes and an agreement made with the tribes if the proposed Tribal Winds casino opens.
The Mashantucket Pequot Tribal Council has tapped John J. James as the new president and CEO of Foxwoods Resort Casino.
"I haven't been able to solve that nut yet," said Lamont on the feud between MGM Resorts International and the tribes.
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.
"We should not settle for anything short of the best deal possible," said Rep. Christopher Rosario, a co-sponsor of the bill.
The tribes have yet to submit a building permit application to the town of East Windsor.
"Let’s sit down, guys, and figure it out," said Gov. Lamont to the tribes and MGM Resorts International.
Questions about traffic, increasing casino competition from neighboring states, and the wisdom or breaking the state compact with the tribes operating Mohegan Sun and Foxwoods remain, say several observers.