East Windsor Casino Plan Halted Due To New Gaming Agreement

EAST WINDSOR, CT — Three years after demolition of the former Showcase Cinemas complex in East Windsor, the Tribal Winds casino planned for that location has been put on hold for at least 10 years, thanks to a new gaming agreement announced Thursday by Gov. Ned Lamont and representatives of the Mohegan and Mashantucket Pequot tribes.

The agreement, intended to allow Connecticut to "modernize gaming options available to state residents, including allowing for sports wagering and online gaming," is expected to generate tens of millions of dollars in new revenue for the state. The agreement also includes the Connecticut Lottery Corporation as a partner, according to an announcement from the governor's office.

"Connecticut is on cusp of providing a modern, technologically advanced gaming experience for our residents, which will be competitive with our neighboring states," Lamont said in a written statement. "Our state’s tribal partners have worked with my administration thoughtfully, deliberately, and in a constructive fashion for the past few months, and we have achieved an agreement that is best for Connecticut residents and their respective tribal members. We will work to see it ratified and look forward to doing so through a collaborative effort, to include working with elected leaders in the General Assembly."

Under terms of the agreement:

• An 18 percent tax rate for the first five years on new online commercial casino gaming (or “iGaming”) offerings, followed by a 20 percent tax rate for at least the next five years
• A 13.75 percent tax rate on sports wagering
• Connecticut Lottery shall have the right to operate 15 retail sports betting locations, as well as operate an online sports betting skin
• Connecticut Lottery shall have the right to sublicense locations to the state-licensed parimutuel operator
• Connecticut Lottery will undertake new retail sports betting venues in Hartford and Bridgeport
• License agreement to be for 10 years with a five-year extension option
• Expansion of iLottery and Keno through the Connecticut Lottery Corporation, including the sale of draw tickets online
• Both tribes agree to halt development of an East Windsor casino through the duration of this agreement.

The final bullet point effectively put an end to plans for an East Windsor casino, which had been approved by state lawmakers and then-Gov. Dannel Malloy in 2017.

East Windsor representatives collectively expressed their disappointment in the new agreement.

"Whatever the benefit of this new deal may be for the state, it is certainly a direct economic loss to the town of East Windsor," First Selectman Jason Bowsza said. "Most troubling is that this deal ties up nearly 30 acres of commercially-developable property located on a major highway and between two highway exits for 10 years or more. This is a real handicap imposed on us by the state, and we certainly hope there will be some meaningful consideration in terms of providing additional, direct state revenue to the town."

In his First Selectman's Report Thursday night, Bowsza added, "As many of you heard, the governor announced today that a deal had been struck with MMCT concerning sports betting and iGaming in Connecticut. One of the conditions of that deal was the indefinite suspension of construction of a casino in East Windsor.

"Now that this is officially off the table, it is important to focus on revenue growth in East Windsor. The state has an obligation to compensate East Windsor for the $3 million per year that we stood to gain from this project, and a portion of the nearly $80 million the state stands to gain from this needs to be allocated for local support. To that end, I’ve had extensive conversations with our legislators and with municipal CEOs in surrounding communities to advocate for exactly that.

"Beyond that, we cannot allow a parcel with that much potential to be locked up and undevelopable for ten years. The tribes should IMMEDIATELY make clear their willingness to sell it and provide commercial development to take place. I’ve stressed this point to Chairman Butler as well."

State Rep. Jaime Foster said, "I'm disappointed to hear that Ellington and East Windsor will not receive the revenue that they were looking forward to acquiring. However, I am optimistic that the East Windsor delegation and I can work with the governor's office to find critically needed economic development opportunities in our community."

"The recent decision to eliminate East Windsor as a potential location for a casino is very disappointing and comes at quite a surprise to me and my colleagues," State Rep. Carol Hall said. "From the onset, both the town and state delegation have fully supported its construction and to have the governor's office choose to eliminate this option without consulting local leaders or the municipal government is puzzling. I look forward to joining my fellow House and Senate representatives and sitting down with governor's office to try and understand the motivation behind this sudden change in order to determine next steps for bringing a casino to the town."

State Sen. Saud Anwar said, "This agreement has positive factors for Connecticut, but it's nothing but bad news for East Windsor. Two years after the East Windsor casino first received approval to move forward, for it to be abandoned is incredibly disappointing. The delegation is especially concerned that these decisions were made without receiving input from any East Windsor stakeholders, especially as the project has already broken ground. We are highly concerned and upset about this turn of events and hope to find a way to discuss the rationale behind these decisions from major stakeholders."

To register for free Windsor Locks-East Windsor news alerts and more, click here.