Connecticut Towns Demand Larger Share of Casino Revenues
Pressure Builds for Increased Casino Revenue Sharing in Connecticut
In Connecticut, there is growing momentum among local officials advocating for a more equitable distribution of casino revenue. For many years, towns have received only a minimal portion of the income generated by tribal casinos, despite initial agreements suggesting that municipalities would benefit significantly. Many believe that with the state’s improved financial situation, it is time to revisit and adjust this balance.
Municipal Officials Seek a Fairer Revenue Distribution
At a recent meeting in the state Capitol, Michael Passero, the head of the Connecticut Conference of Municipalities, highlighted that the current system for distributing casino revenue is outdated and does not reflect modern economic circumstances. He noted that during the early 2000s, the state reallocated funds to cover budget shortfalls, but these cuts to municipal revenue shares were never fully restored.
Research shows that in the current fiscal year, Connecticut anticipates collecting around $365 million from video slot operations at Foxwoods Resort Casino and Mohegan Sun. However, only $52.5 million — approximately 14% — is allocated to the state’s 169 cities and towns. Local leaders argue for a return to the original revenue-sharing framework that promised greater municipal support.
Senator Heather Somers expressed frustration, emphasizing that the initial agreement with the tribal nations promised municipalities significant revenue shares that have yet to be honored.
The state’s original legislation aimed to direct substantial casino slot revenue to local governments, acknowledging the increased municipal costs related to gambling, such as heightened demand for policing and housing services. Yet, funding levels have since stagnated and failed to keep pace with inflation, forcing many communities to increase property taxes or cut back on services.
Financial Realities Complicate Revenue Sharing Adjustments
Some state lawmakers argue that expanding aid to municipalities is both necessary and overdue. While education funding often dominates budget priorities, other financial pressures on local governments also warrant attention. Supporters of increased revenue sharing view it as a matter of fairness, given prior commitments made alongside tribal casino operators.
Despite an overall improvement in the state’s economy, Connecticut continues to grapple with major financial obligations such as pension liabilities. Additionally, state leaders have prioritized using surplus funds toward reducing long-term debts. Anticipated reductions in federal funding for Medicaid and other programs could tighten the budget further, leaving limited room for increased municipal allocations.
Municipalities face mounting challenges, especially in cities like New London, where economic stagnation and rising costs intensify the reliance on state assistance. Enhancing casino revenue shares could provide crucial financial support to struggling local governments. Nonetheless, broader discussions over state resource allocation make any immediate changes uncertain.
