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Connecticut’s Casino Problem

April 11, 2017 By Staff
Connecticut’s Casino Problem

This begs the question: how will the state make up for the loss of casino revenue?

A new report from The Wall Street Journal said that, for the ninth straight year, Connecticut’s casino revenue is down:

Revenue at Connecticut’s two Indian casinos fell for the ninth straight year amid greater competition in the Northeast, according to a report released Tuesday, an extended losing streak that may continue with new competition on the horizon.

This begs the question: how will the state make up for the loss of casino revenue?

In 2010, State Senator Kevin Witkos (R-08) broke down the importance of casino revenue in Connecticut. The short answer? Hundreds of millions of dollars from casinos filters back to local communities via state aid:

Known today as the Mashantucket Pequot and Mohegan Fund (Pequot Fund), a portion of the money raised through casino gaming is set aside and placed into this separate nonlapsing account so that it can be allocated to each and every municipality in the form of state aid. In its 17 years in existence, the fund has provided hundreds of millions of dollars in state aid to our local communities.

With Connecticut’s already weak economy, a budget crisis, and state leaders looking to saddle local communities with picking up more costs, this is a bad time for casino revenue to lag. To make matters worse, under Governor Malloy’s recent budget proposal small towns are some of the many “losers” in the state’s budget mess.