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After the first two rounds, MGM Resorts International falls behind on the scorecard.
Last week, legal arguments attempting to prevent the establishment of a casino on the Connecticut-Massachusetts border were deemed inadequate. Consequently, the 2nd U.S. Circuit Court of Appeals in Manhattan upheld the dismissal of MGM’s lawsuit against Connecticut.
In spite of facing another legal setback, the company remains determined to continue the battle, as it has a $1 billion casino investment in Springfield, Massachusetts, that it must safeguard.
After the ruling, Uri Clinton, legal counsel for MGM Resorts, stated that they remain determined to compete in Connecticut and are not discouraged from achieving their goal.
The crux of the East Windsor casino lawsuit
The passing of a recent bill by the Connecticut legislature has allowed for the establishment of a $300 million tribal casino on non-tribal land, bypassing any bidding or proposal procedures. Additionally, the bill sanctioned the creation of a third casino within the state, granting the license exclusively to the Mohegan and Mashantucket Pequot tribes.
From the beginning, MGM has been highly critical of the process while constructing a Massachusetts casino that is conveniently located less than 30 minutes away from the Connecticut border.
Clinton issued a statement after the House vote, stating:
Connecticut failed to seize a significant opportunity to establish a casino process that was open, transparent, and competitive. This missed chance could have brought about an impressive $1 billion in economic development, the generation of numerous jobs, and a licensing fee of up to $100 million for the state. However, Connecticut ended up with considerably less than what was anticipated.
MGM desires an open bidding process and strongly prefers the project to be relocated to a southern location, distanced from its ongoing Massachusetts project.
Connecticut’s decision to pre-award gaming licenses to its two tribes has been met with strong opposition from MGM, as the company is making extensive efforts to obstruct the bill. However, the courts have consistently ruled in favor of the state of Connecticut thus far.
Case dismissed over lack of evidence
The case brought by MGM against the state of Connecticut was previously dismissed by a judge in a prior decision. Last week, the 2nd U.S. Circuit Court of Appeals affirmed the lower court’s ruling, marking the company’s second defeat.
The 2nd Circuit dismissed the case and delivered a Dikembe Mutombo finger wag to MGM International. They deemed the company’s claims about being at a competitive disadvantage due to the legislature’s fast-tracking of the joint project between the state’s two gaming tribes as “purely speculative.”
MGM can still fight
Although the tribes are satisfied with the ruling, the court has not completely ruled out the possibility of MGM pursuing further legal action.
In a footnote, U.S. Circuit Judge John Walker Jr. expressed his opinion as reported by the Boston Herald, stating the following:
At present, our conclusion does not dismiss the potential for MGM’s alleged harm to become imminent in the future. However, it is important to note that this possibility is currently hypothetical and therefore does not require our attention.
Can MGM demonstrate that they are experiencing harm?
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