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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.
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.
But a spokesman for Gov. Ned Lamont said the proposed bill "falls short of what the governor wants for Bridgeport."
The Schaghticokes are making a final attempt at gaining federal recognition, which if granted could ultimately lead to a casino in Fairfield County.
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.