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The Economic Impact of New Construction and Expansion Activity at the Two Casinos in Southeastern Connecticut

In order to create a comprehensive vision for the future of Southeastern Connecticut and to understand the overall structure of the region in relation to the activities of the two tribal casinos in the region, the Chamber of Eastern Connecticut requested a comprehensive economic analysis of these activities prepared by objective and independent research group. 

Announced major expansion plans of both the Mohegan Tribe and Mashantucket Pequots increased the importance and timeliness of an impact analysis.

CERC conducted an economic impact analysis using an econometric model that included information on the industry structure of New London County, abutting counties and the balance of Connecticut.  The model provided a baseline with a forecast for the regional and state economies. This baseline data then was used to examine other scenarios related to the activities of the casinos. 

For the first scenario a counterfactual model was developed which looked at the economy of the region would without the current activity of the two casinos.  That is the purchases by the casinos, their employment, expenditures by their employees, and their payments to the State government were extracted from the model and the changes to the economies were examined.  The second scenario took into account the impact of the new construction work that would be undertaken by the casinos and the increases in their operating programs as a result of this new activity. 

A report was written and CERC conducted presentations around the region that reported the findings. The analysis looked at historic, current and projected employment for the combined operations of the two Native American casinos. The economic impacts of the $1.5 billion in construction and expansion were also analyzed to determine short-term and long-term impacts.  Results were presented at a statewide Native American summit.


Thomas (Tony) A. Sheridan
Chamber of Commerce of Eastern Connecticut
39 King’s Highway
Gales Ferry, CT