The Mohegan Tribe. and Connecticut. A partnership marked by success
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1 The Mohegan Tribe and Connecticut A partnership marked by success
2 The Mohegan Tribe and Connecticut A partnership marked by success
3 The Mohegan Tribe: A Rich and Vibrant History Before the Europeans arrived on this continent, Native Americans made this region their home. Thirteen generations ago, Sachem (Chief) Uncas brought his people to Shantok and the hills of Mohegan. The domain of Uncas and his tribe encompassed much of what is now eastern Connecticut. Uncas believed that cooperation with the English arrivals would ensure his people s survival. He developed a historic interaction between his tribe and the settlers. Uncas and his people played a vital role in helping the new immigrants survive in the New World. Mohegans served as scouts for General Washington s Army and have fought with honor for the United States in every war since the American Revolution. The English formed the Connecticut Colony in 1636 and formally recognized the sovereignty of the Mohegan Tribe in the 1638 Treaty of Hartford, a recognition that has been maintained through the present day. For over 350 years, treaties and laws have highlighted the Tribe s independent status. At the federal level, the unique rights of Native American tribes were further recognized and laid out in the Constitution of the United States of America. In 1978, the U.S. government created a process through which the various Native American tribes could petition for federal acknowledgment. The Mohegans filed for federal recognition that same year. After an intensive review of over 20,000 pages of paperwork documenting the Tribe s history, the federal government formally recognized the Mohegan Nation on March 7,
4 On September 30, 1995, 240 acres of land that had once made up a part of the most northern portion of the earlier Mohegan reservation were reacquired by the Tribe and placed in trust by the United States government. Where the Mohegans once governed much of the land that is today eastern Connecticut, the Mohegan Tribe s present federally recognized reservation is the parcel of land located on the western bank of the Thames River, adjacent to the village of Uncasville in the town of Montville, Connecticut. The Mohegan Tribe has maintained an independent tribal structure since before the Europeans arrived on this land. Today, the Mohegan Nation exercises full civil jurisdiction and concurrent criminal jurisdiction over their lands. The Mohegan Tribe under its Tribal Constitution, is governed by the Mohegan people and is represented by a Tribal Council of nine Tribal Members, and a Council of Elders, consisting of seven Tribal Members. After the passage of the Native American Indian Gaming Regulatory Act (IGRA) in 1988, the Mohegan Tribe successfully negotiated a compact with the state of Connecticut that led to the development of the Mohegan Sun Casino. This historic agreement between the Mohegan Tribe and Connecticut means that 25 percent of slot revenues at the casino are contributed to the state to help fund vital services. This revenue-sharing agreement provides hundreds of millions of dollars to Connecticut. It is the most generous tribal revenue-sharing program in the United States. Connecticut s Native American tribes are now the single largest source of revenue for Connecticut outside of the federal government. Mohegans are proud to be members of both the Mohegan Nation and the United States of America. The Tribe s dedication to making this land a better place to live and raise a family is nothing new. Since the first contact took place, the Mohegan Tribe has always been committed to good relations with their non Native American neighbors and always will be. It s called...the Mohegan Way. 3
5 Mohegan Sun A Native American tribe s ability to access the resources available through gaming is vastly different from commercial gaming or even that of a state gaming activity. A very special relationship exists between federally recognized tribes and the United States. This relationship is granted in Article 1, Section 8 of the United States Constitution, and has been repeatedly upheld by the United States Supreme Court. As such, it is primarily the federal government and tribes that regulate and oversee all gaming operations, unless other agreements have been made with a state. The Mohegan Tribe opened Mohegan Sun in October of 1996 to help in economic security and benefits for Tribal members. It has also become an economic engine for southeastern Connecticut and the surrounding region. As mandated by federal law and the Mohegan Tribe s Constitution and laws, profits from Native American gaming go to support the health, education, welfare, and infrastructure of tribal governments. Although tribes are entitled to certain federal grants, by 1997 the Mohegan Tribe was in a position to return or reject funds, beginning with $2.2 million in grant funds that went back to the Department of Housing and Urban Development to be redistributed to other Native American nations. A Partnership with Connecticut Today, the Mohegan Tribe and Mohegan Sun have an extraordinarily positive impact on the economy of southern New England. 4
6 The Mohegan Tribe and Native American gaming is the single largest source of revenue for the state of Connecticut other than transfers from the federal government. Connecticut s compacts with its two Native American Tribes represent the most generous revenue-sharing program in the nation. The average percentage of slot revenues paid by Native American gaming operations to other state governments is about 12 percent, less than one-half of what the tribes transfer to the state of Connecticut. If Mohegan Sun paid the standard state corporate tax rate, even with an additional eight percent gaming tax, the Mohegan Tribe s contribution to the state would be cut in half. Connecticut s two tribes contribute three times as much to Connecticut s budget as do California s 48 Native American casinos combined. To date, the Tribes have provided the state of Connecticut with over $4 billion. Since its opening in October of 1996, Mohegan Sun has generated some amazing numbers for Connecticut s economy: - Approximately $2.5 billion in slot revenue contributions to the State of Connecticut - Over $4 billion is salaries, wages and benefits for employees - Over $6 billion in goods and services - Over $200 million in state taxes - Over $65 million in state services - Over $18 million in charitable donations The Mohegan Tribe also pays for all costs associated with the State Police personnel who enforce Connecticut criminal statutes at the casino, and all state costs associated with the oversight of the casino including on-site state liquor control. 5
7 Helping to Create and Maintain Jobs in Connecticut Faced with cutbacks in the manufacturing and defense industries, a state-sponsored survey in the 1990s estimated that eastern Connecticut would have had a jobless rate of 20 percent by the year Tribal casino operations helped to stem the region s downward trend at the time. Currently, the Mohegan Tribe provides nearly 10,000 jobs. More than 90 percent of Mohegan Sun employees live in Connecticut. Wages and benefits at the Mohegan Sun are approximately 30 percent higher than the average wages and benefits for employees in the hotel industry. The Mohegans, along with the Pequots, employ more people in Connecticut than any corporation. Overall, activities at the Mohegan Sun account for approximately 24,000 more jobs in Connecticut each year than there would be otherwise without Mohegan Sun operations. Employees of the Tribes and Casinos pay all federal and state income taxes as well as other employment taxes, providing tens of millions of dollars more to the state and federal government. In addition, vendor payments by the Mohegan Tribe help support hundreds of small and medium-sized companies that in turn employ thousands of people. Connecticut s personal income is about $1.34 billion higher each year than it would be otherwise, and the Mohegan Sun adds about $1.43 billion a year to Connecticut s gross state product. Studies have shown that the casinos are the leading reason tourists come to Connecticut, and tourist-related support services now account for tens of thousands of jobs in the Connecticut economy. 6
8 A Commitment to Being Good Neighbors The Mohegan Tribe used its own funds to pay for the $35 million access road that enables visitors to reach Mohegan Sun without clogging Montville roads. The Mohegan Tribe worked closely with its neighbors and provided the up-front funding for an extraordinary $11 million regional water project that will ensure that safe, clean drinking water is available to the entire region for decades to come. The Mohegan Tribe has been a strong advocate in the effort to ensure that Connecticut s communities get a greater share of slots revenues, including the successful initiative to modify the funding formula so that communities most impacted by the casinos receive additional funds from the Pequot-Mohegan Fund. In addition, the Mohegan Tribe pays $500,000 each year to the town of Montville in lieu of taxes. The Mohegan Tribe is a partner in the Community Economic Development Fund. The revolving loan program will help small businesses create jobs. The Tribe is the first and only non-bank investor in such a program in Connecticut. The Mohegan Tribe joined with the City of Norwich to establish the Sachem Fund for that community s civic improvements. The Mohegan Tribe is also one of the state s largest sources of charitable contributions, funding numerous cultural, educational, and social programs. Mohegan Sun is a significant part of southeastern Connecticut s tourism industry, accounting for 12.7 million visitors annually to the region. 7
9 Protecting and Preserving Mother Earth As Native Americans, the Mohegan Tribe has always believed that one of its most fundamental values was to be stewards of the environment. The Tribe s commitment to protecting Mother Earth is not only expressed in words but also in deeds. The Tribe has also built complex energy-saving systems into their facilities, such as infrared sensors in hotel rooms that detect when a room is occupied and then adjust the heating system accordingly. Ground source heat pumps that use the Earth s temperature to heat and cool have also been installed at the Tribal Child Development Center. The Mohegan Tribe installed two major fuel cells that are used to partially power Mohegan Sun. The 200-megawatt fuel cells, which cost $2.4 million, use hydrogen derived from natural gas. To further reduce energy consumption on the reservation, thermal energy from the fuel cells is used to pre-heat boiler water. The Tribe also planted 100 acres of trees in Costa Rica to offset carbon dioxide emitted by the fuel cells. In addition to the use of state-of-the art technologies to conserve energy, the Tribe employs a variety of less complex forms of conservation, including the use of significant recycling. For example, food scraps from the casino are sent to a local pig farm. Some of the pigs waste is composted and used to grow sweet grass, a plant very important to Native Americans that is used for basket-making. This commitment to preserving our precious natural resources not only benefits the Tribe but also surrounding communities. 8
10 Native American Gaming and its Impact in the United States There are 565 federally recognized Native American tribes. 241 tribes are engaged in gaming activities. There are a total of 476 tribal gaming operations (several tribes operate more than one facility). Tribal gaming takes place in 28 states around the country. There are over 250 tribalstate gaming compacts covering all Native American gaming facilities. Tribal gaming generates revenue of about $14.5 billion per year (less than 21 percent of the amount generated by the total gaming industry). Many tribes operate gaming facilities primarily to generate employment for tribal members. More than 400,000 people have jobs in tribal gaming facilities. 75 percent of these employees are not Native American. In areas of high unemployment such as North and South Dakota, 80 percent of tribal governmental gaming employees are Native American. 9
11 Federal Recognition and Native American Rights In 1978, the United States Congress adopted legislation to allow Native American tribes that had not yet been federally recognized to seek recognition through a complex application process managed by the Bureau of Indian Affairs. The petitioning tribe must satisfy seven mandatory criteria, including historical and continuous American Indian identity in a distinct community. Each of the criteria demands exceptional anthropological, historical, and genealogical research and presentation of evidence. The vast majority of petitioners do not meet these strict standards, and far more petitions have been denied than accepted. Federal law requires that land taken into trust status must: 1. Benefit the tribe. 2. NOT be detrimental to the surrounding community. 3. Be approved by the State Governor. The federal Indian Gaming Regulatory Act requires that revenues from Tribal Governmental gaming must be used in five specific areas: 1. To fund Tribal Government operations or programs. 2. To provide for the general welfare of the Native American tribe and its members. 3. To promote tribal economic development. 4. To donate to charitable organizations. 5. To help fund operations of local government agencies. 10
12 Regulation of Native American Gaming Tribal Governmental gaming is regulated on three levels: 1. Under the Indian Gaming Regulatory Act (IGRA), tribes must establish the basic regulatory framework for Native American gaming. 2. Federal agencies enforce laws relating to Native American gaming, including the National Indian Gaming Commission, the Interior Department, the Justice Department, FBI, IRS, Secret Service and the Treasury Department s Financial Crimes Enforcement Network. 3. State regulation may be included as part of tribal/state compacts. In Connecticut, the state has jurisdiction of criminal statutes and the State Police has full authority to act on these issues on reservation lands, including the casino. The State Department of Liquor Control has joint jurisdiction at the casino to oversee Connecticut liquor laws. In Connecticut, all costs associated with these and other oversight activities are paid for by the Mohegan Tribe. 11
13 Problem Gambling According to major national studies, the prevalence of pathological gambling among the general public is 8/10 of one percent. Comparable figures for other problems in society are: 1. Alcohol dependence 13.8 percent. 2. Drug dependence 6.2 percent. 3. Major depression 6.4 percent. Tribes have model programs for problem gamblers. In many states, such as Arizona, North Dakota and Connecticut, Native American tribes are the primary funding source for such programs. In Connecticut, the Mohegan Tribe contributes approximately $300,000 per year to problem gambling programs. Connecticut was the first state in the union to establish an agency to address problem gambling. 12
14 Mohegan Tribe 5 Crow Hill Road Uncasville, CT (860)
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