HARTFORD — In 2004, the Schaghticoke Tribal Nation received federal recognition, a first step toward building a casino. The next year, its hopes were dashed when that recognition was reversed.
On Tuesday, the Kent-based tribe thought, for a brief moment, it had a victory when the secretary of the state approved its application to form a company, which the Schaghticokes thought would allow them to build a casino.
On Wednesday, victory was taken away.
Secretary of the State Denise W. Merrill said Wednesday that the tribe's application to form a limited liability company is permitted, but without federal recognition, the Schaghticokes cannot pursue development of a casino on their reservation.
Merrill said the error is not legally binding."Our acceptance of that LLC would not recognize that tribe," Merrill said in comments at the Capitol. "Forty-five clerks, 400,000 businesses — 99.9 percent of the time, we would have been correct."Richard Velky, chief of Schaghticoke Tribal Nation, could not be reached Wednesday. Late Tuesday, he'd issued a press release that said, "We are pleased the State of Connecticut has granted us this authority ... we intend in due course to issue a request for proposals to municipalities regarding the establishment of a possible gaming facility in a municipality."Last year, Gov. Dannel P. Malloy signed legislation allowing the operators of Foxwoods and Mohegan Sun to pick a site for a third casino.The third casino would be an attempt to blunt the competitive threat posed by a mega-casino being built by MGM Resorts International in nearby Springfield, expected to open in fall 2018.The statute signed by Malloy specifically allows the Mashantucket Pequots and Mohegans to seek a third location, in north central Connecticut off tribal lands, for a casino to be jointly operated by them. The tribes still need approval, however, to expand casino gambling off tribal lands, an issue that could be debated in the legislature this session.The Schaghticokes aren't necessarily barred from pursuing a casino. But they can't do so as a tribal business entity or on their reservation, both requiring federal recognition.A spokeswoman for Attorney General George Jepsen said there is nothing in the law prohibiting the Schaghticokes — or any developer — from starting casino discussions with any of the state's communities.The argument has been central to the state's defense in a lawsuit by MGM challenging the 2015 law known as Special Act 15-7. The pending lawsuit claims Special Act 15-7 favors the Mohegans and Mashantucket Pequots, excluding other potential operators, including MGM."Our office has argued, in the context of the MGM litigation, that neither Special Act 15-7 nor any other law prevents any individual or entity from creating a business, registering it with the Secretary of the State (provided only that it is not registered under Special Act 15-7), issuing an RFP, negotiating a development agreement with a municipality and asking the state to make changes to the law necessary for the agreement to be approved for operation of a casino," Jaclyn Falkowski, Jepsen's spokeswoman, said in a statement.Sen. Richard Blumenthal, D-Conn., said Wednesday the approach being used by the Schaghticokes seems misguided."Their reliance on Special Act 15-7 seems misplaced as that state legislative act limits the operation of the third casino to a business entity controlled by the two federally recognized tribes in Connecticut — the Mashantuckets and the Mohegans," Blumenthal said.The joint venture formed by the Mashantucket Pequots and the Mohegans is now reviewing proposed sites for the third casino, which would be smaller than the tribes' flagship operations in southeastern Connecticut. The sites are in East Hartford, East Windsor, Hartford and Windsor Locks.The tribes have not announced a deadline for selecting a site. However, there is an expectation in the legislature that the tribes won't seek the expansion of casino gaming until they have picked a location.The entrance of a third casino operator could impact the state's "compact" with Foxwoods and Mohegan Sun that, among other things, gives the state a cut of slot revenue, about $200 million a year.Courant staff writer Dan Haar contributed to this story.| < Prev | Next > |
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