Inspector General investigates Connecticut tribe casino after reports on MGM lobbying

The Department of the Interior's Office of the Inspector General is investigating the agency's handling of the Mohegan and Mashantucket Pequot tribes applications to open a new Connecticut casino. The investigation follows reporting by Politico that detailed MGM Resorts International's lobbying against the tribes request for amendments to their federal compacts that would allow them to operate a third casino in the state.

Following extensive lobbying by MGM, the Interior Department did not make a determination on the amendments one way or the other -- leaving the tribes' East Windsor casino project in legal limbo, as MGM's Springfield casino nears its opening date this fall.

Following Politico's report, members of Connecticut's Congressional delegation requested an investigation into Interior's decision making. Politico reported that the investigation had commenced on April 20, and the Hartford Courant confirmed the existence of the probe on Monday.

"We are grateful there's an IG investigation into this issue because since last fall, none of the department's actions have passed the smell test. Something clearly happened to pollute the process, which should be problematic for an administration that promised to drain the swamp," said Andrew Doba, spokesman for the tribes' joint casino company MMCT.

In July of last year, Connecticut Gov. Dannel Malloy signed a law authorizing the tribes to jointly build a commercial casino in East Windsor, following warnings from tribal officials that MGM Springfield could kneecap Connecticut's casino industry -- leading to thousands of job losses and a decrease in state revenue.

But the law required that the tribes amend their federal compacts to allow for the new casino, and the Department of the Interior has not ruled one way or the other. While the tribes contend the department's silence qualifies as acceptance, it has left their project on uncertain regulatory footing.

MGM has embarked on a years-long campaign, through the justice system, the Connecticut legislature and the court of public opinion, to prevent MMCT from building a new casino on its doorstep.

The company has argued that Connecticut's casino bill, while restricted development of its third casino to its two existing tribal operators, was unfair, anti-competitive and unconstitutional. MGM has also pitched lawmakers on approving a new casino in Bridgeport, and has attracted support for its plan. from union leaders and public officials in Southern Connecticut.

In February, Politico reported that the Interior Department's refusal to act on the tribes' amendments came after "numerous" meetings and phone calls with MGM lobbyists. On Sunday, Politico reported that Interior Department staff had recommended approving the amendments, but were overruled by senior officials.