The (Nathan) Deal they can’t refuse; Decision time in Connecticut

Casino companies like to complain about high taxation … unless they’re trying to get into a jurisdiction, in which case they’ll agree to anything. In Georgia, they’ve upped the ante from a proposed 12% tax rate to 20%. It’s not quite the giveaway it appears: It would still be the second-lowest rate on the East Coast, lower than Massachusetts‘ 25%. Among those jostling for position is the Poarch Band of Creek Indians, whose Wind Creek Hospitality already operates Class II gaming in Alabama and Florida. They’re elbowing MGM Resorts International and Las Vegas Sands to get in on the prospective action.

Tax projections — which have to be taken with a grain of salt — are $280 million a year and the casinos would be parceled out regionally. Atlanta would get two, Macon, Columbus, Savannah and “South Georgia” one each. While Gov. Nathan Deal (R) remains nominally opposed to gaming, he’s not foreclosing his options but rather laying down the terms of what he’d find acceptable: namely a higher tax rate. He’d like to see casinos pay at least 24% of gross gaming revenues and as much as 35%. Compared to what they’re levied in many other states, particularly on the East Coast, that could be a bargain.

* Rep. Rob Bishop (R) has proposed a radical change in the tribal-recognition process, putting it solely in the hands of Congress … not the most functional of government bodies lately. “My goal is to empower Native American tribes. We don’t have a great record. We do a lot of lip service to it,” said Bishop. But does anyone think this will really improve on what’s already a glacial and tortuous process?

* Choosing a host community for its joint-venture casino got a lot easier for Mohegan Sun and Foxwoods Resort Casino. Only two cities will respond to the request for proposals: East Hartford and East Windsor. Potential competitors Hartford, Windsor Locks and Enfield have all declined to submit bids. With requests for proposals due Friday, we might still be in for a surprise candidacy but it appears unlikely.

East Windsor is juggling two potential sites, including one occupied by a Walmart, the other undisclosed. East Hartford hopes to resurrect a defunct cineplex as its casino site. The $138 million project has been upsized from 2,000 gaming positions, tops, to 2,000-plus, while parking has exploded from 1,200 spots to 3,000-plus. The RFP process comes, somewhat awkwardly, right atop local elections. As Mayor Marcia Leclerc put it, “Today I’m doing the casino, tomorrow I might not be here.” Once the Mohegans and Pequots make their choice, it’s back to the Lege, which still hasn’t actually approved the casino yet, just the site-selection process. Ah, politics.

* Mesquite’s most admired casino, the Eureka, has always been a mom-and-pop operation. Now it’s taking that a step farther, converting the Eureka into an employee-owned casino. There’s a lot of risk in the Employee Stock Ownership Plan. Either the casino succeeds or employee retirement funds are wiped out. However, if any casino’s track record gives one confidence in the ESOP experiment it’s this one.