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Indianz.Com > Free slot machine play at tribal casinos pays off in Connecticut

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Compacts | Connecticut
Free slot machine play at tribal casinos pays off in Connecticut
Tuesday, July 26, 2011  

economy
mashantucket
mohegan
revenue sharing
slot machines
As part of the Class III gaming compact, the Mashantucket Pequot Tribal Nation and the Mohegan Tribe share 25 percent of slot machine revenues to the state of Connecticut.

The arrangement has sent hundreds of millions of dollars into the state's coffers. But when the recession hit in 2008, tribal revenues began to decline and the state's share took a dive.

A free slot machine promotion offered by both tribes, however, has kept the state's contributions at bay. Despite declines in their revenues, the tribes shared $359.6 million in the fiscal year that ended June 30, up slightly from $359.3 million in the year prior.

"The state should be happy about it (free play) because it's a tool that casinos are using to keep their place in an ever-more-competitive landscape," Mitchell Etess, the chief executive officer of the Mohegan Tribal Gaming Authority, told The New London Day.

As part of a settlement reached in 2009, the tribes share 25 percent of redeemed free-play coupons and credits that exceed 5.5 percent of the monthly slot win. That means the state gets paid even if the tribes aren't always getting paid.

Get the Story:
Free slots play a boon to state's pocketbook (The New London Day 7/26)

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