Federal judge dismisses MGM’s lawsuit opposing Connecticut casino

MGM Resorts International sought to block facility in Connecticut arguing that the state conspired with the tribes to keep out potential competitors.

US.- U.S. District Judge Alvin W. Thompson dismissed the legal challenge to the proposal brought by MGM Resorts International. The casino operator is currently constructing a US$1 billion casino just across the state border in Springfield, Mass., filled a suit opposing the possibility of a casino in Connecticut.

Connecticut’s two federally recognised Indian tribes, the Mohegan Tribe nor the Mashantucket Tribal Nation, are planning to build a new casino somewhere between Hartford and the Massachusetts border. The two tribes have operated the Foxwoods and Mohegan Sun casinos in southeastern Connecticut since the 1990s as per a deal made with the state.

Officials agreed to let them pursue a joint satellite casino to compete with new ventures in neighboring states, but the site has not been chosen yet. Once the tribes propose a location, the state will have the final word on whether to go along with the proposed site and will establish rules governing the operation.

Thompson ruled that MGM failed to “adequately allege an injury” from a law enacted last year which allows the state’s two Indian tribes to form a special business entity and negotiate casino development with a town. Thompson added that since any injury to MGM is “purely speculative” the company doesn’t have legal standing to sue, although the casino operator is likely to appeal this ruling.