Casino and Political Gaming in Connecticut

Source: Shelley Michelson, MuniNet Guide, December 1, 2014

As casino gaming goes in the State of Connecticut, so go the State’s finances. …

…Competition in the gaming market has increased markedly since Foxwood’s opening when there were a total of 10 other casinos, all in New Jersey, which became an over-built market suffering from multiple bankruptcies and closures. As of September of this year, the number of Northeast area casinos had increased to 57, with 20 more under consideration. Competition from Rhode Island’s Twin River Casino and the slots at Aqueduct and Yonkers Racetracks in New York have cut into revenues at Foxwoods and Mohegan Sun as well as those of New Jersey casinos. Moody’s warned that the financial performance of Mohegan Sun could suffer as a result of this increased competition.

In fact, Moody’s has placed a Negative Outlook for the gaming industry nationwide; its Senior Vice President, Keith Foley, wrote in a report dated June 30, 2014, “We now estimate that the total U.S. gaming revenues reported by state gaming authorities will decrease between 3.0% and 5.0% during the next 12 to 18 months, causing overall industry (earnings before interest and tax) to decline between 4.5% and 7.5%.” …