Tough Times for Casinos

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By Matthew Campbell

Connecticut casinos are posting negative numbers and are stopping expansions, but plans for a Palmer expansion are going full steam ahead.

The glitz and the glamour is undeniable. The lure of quick cash attracts thousands of us from the Valley, 70 miles away to Uncasville, Connecticut on a daily basis.

"It's entertainment for the people in the area, they won't have to travel as far," says Palmer's Elanor Clark.

And that one hour drive down 91, to route 2 to 395, could turn into a 20 minute trip down the Pike.

Mohegan Sun is committed to Palmer if and when casino gaming is legalized.

"We're not entertaining any other locations in the Commonwealth," Mohegan Sun Vice President of Development, Paul Brody says.

But recently, the economy soured.

"The entertainment business are some of the first dollars to disappear," Brody notes.

Brody was at Salvatore's on Boston Road convincing residents the time is still right to build.

"If you asked me if we'd like to break ground tomorrow, the answer is yes. If it was 6 months ago, it would be a struggle with the capital markets to move forward. I'm happy to say there's been a thaw in the capital markets," he says.

Even so, Mohegan just posted a double digit loss this quarter and had to put one expansion on hold.

CBS 3 asked how they could justify stopping one expansion, just to plan another.

"When the jobs come back as we're sure they will, as the confidence comes back to the economy, folks will come out. They want to have a good time again. They'll wonder, 'gee, was it really as bad as it was in 2009,'" Brody says.

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