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Through his efforts, the tribe won federal recognition in In , it opened a high-stakes bingo hall. Some in the industry talk of there being an oversupply, as if their product were lumber or soybeans. A renovation to modernize them is under way. Even on a Monday afternoon, thousands of people — white, black, Asian and Hispanic, drawn from the great melting pot of Queens and nearby boroughs and suburbs — were playing the slot machines.{/INSERTKEYS}{/PARAGRAPH} The Mohegans own a second casino, in the Pocono Mountains in Pennsylvania, and are expected to compete for a license in Massachusetts. Indoor skiing. There are, for example, the so-called riverboat casinos that get around prohibitions against gambling on land; most of the boats never leave the shoreline. Foxwoods has had its own in-state competition since from the Mohegan Sun, which lies just west, across the Thames River. Mohegan is smaller, but in recent years it has generated more revenue. The casino is underwater, like a five-bedroom Spanish colonial in a Nevada subdivision. Ten thousand employees. The racino, a more recent innovation, is a slots parlor built at an existing horse-racing track — ground already touched and therefore tainted by gambling. Well, yes, but the exhibits make clear, in a way a casino never could, that the Pequots were a significant people whose reach once extended across much of southern New England. And lawmakers in Massachusetts recently voted to issue licenses for a slots parlor and three full resort casinos — an especially ominous development for the Connecticut casinos, which draw about 30 percent of their clientele from Massachusetts, because many gamblers are ruled by what is known in the business as the law of gravity. The state had just 10 casinos, but Rendell negotiated an agreement that requires them to turn over 55 percent of the hold from their slots to the state — an advantageous deal for the public and one that showed other states what casino owners will tolerate to gain entry into a market. The main action at Foxwoods and everywhere in the U. It was going to be Disneyland under a glass roof. You can still hear echoes of a time when gambling was widely considered wicked. They were called incentive payments, though for many they were actually disincentives to work. Casinos came to Nevada in and were not legalized anywhere else in the U. The glamour and sexiness of casinos can be highly overrated. The region was starved for gambling. But how the casino reached this point, and the challenges its owners and operators now confront, is part of a much larger story — one involving the gradual relaxation of moral prohibitions against gambling, a desperate search for new revenue by state governments and the proliferation of new casinos across America. When you enter its main hotel lobby, you notice right away that the lighting is better and the music more current. {PARAGRAPH}{INSERTKEYS}Nearly everything about the Foxwoods Resort Casino is improbable, beginning with its scale. They understood the potential. The Pequots misjudged the market, borrowed too much and expanded unwisely. The A. Some are no more than trailers on barren, remote land, but several are large resort casinos near major population centers. Foxwoods planned to close at 2 a. Full-blown casino gambling came to Foxwoods in and in the two decades since has produced not millions but billions of dollars of revenue. The place has 6, slot machines. In October, a casino opened at the Aqueduct racetrack in Queens with 4, slot machines, and Gov. In , casinos opened in a second location, Atlantic City. The Pequots, even with their substantial political clout in Connecticut, may not have been able to keep the Mohegans out of the casino market. Owned by the Mohegan Tribe, it is a more modest property, though only by comparison — Mohegan is the second-largest casino in the hemisphere. Our junior debt was trading at 5 cents on the dollar. But they never really mobilized against them. Not surprisingly, the casino and its largess rejuvenated the tribe, whose population is now about Members trace their bloodlines to 11 Pequot families counted in a census. Once powerful and even feared, the Pequots were nearly extinguished in one day — in fact, in just one hour — when English colonists and their Indian allies attacked and torched the main Pequot village near Mystic in the spring of The survivors were sold into slavery or given over to neighboring tribes. He had put off the operation as long as he could but decided that the leader of such a struggling venture should not look as if each step he takes may be his last. Butera, who is 45, has managed troubled casino operations for Donald Trump and Carl Icahn, so he is accustomed to difficult bosses and jobs. Casino gambling exists in 36 states. You figure you had one great success, you can have more. Butera reacts to the debates over gambling with a sense of amusement. Which happens to be true. In the industry, he is known as a turnaround artist. It would be on the banks of the Potomac, about 10 miles south of the White House. Some just look white. Butler, 35, played football at the University of Connecticut, earned a degree in finance and serves on the board of the local United Way. When Rodney Butler raised the prospect of dropping the gambling age in Connecticut from 21 to 18 and allowing liquor sales until 4 a. Most people probably would not guess which state reaps the most revenue from its casinos. Mohegan has a younger clientele and a hipper vibe. The fact that Foxwoods is on sovereign tribal land complicates everything. They stop where the pull is the strongest, which is usually the nearest casino. Congress passed the Indian Gaming Regulatory Act in , and around Indian casinos now dot the American landscape. Then we opened the doors at the MGM Grand, and five months later, Lehman crashes and the world falls apart. He was limping, though not as badly as before recent hip-replacement surgery. Perhaps a polling place for the New Hampshire primary. It is the largest casino in the Western Hemisphere — a gigantic, labyrinthine wonderland set down in a cedar forest and swamp in an otherwise sleepy corner of southeastern Connecticut. It is not coincidental that the seaside resort was already a fallen place, poor and crime-ridden and hanging on to its one unique attraction, the annual Miss America Pageant. Her grandson was Richard Hayward known as Skip , a pipe welder and a former short-order cook with an audacious vision, innate political skills and a flair for dealmaking. In the early s, just one resident remained on a Pequot reservation in Ledyard, now the site of Foxwoods — an elderly woman named Elizabeth George. By the time it opened in — with hotel rooms, 1, slot machines and a 4,seat theater — the recession had hit and was deepening. The Mohegan Sun enjoys several advantages, starting with its location. Children began getting the disbursements when they turned Luxury automobiles abounded. That represents money that individuals bet, lost and left behind in casinos. The project is what finally sent Foxwoods into a financial tailspin. Foxwoods, under any circumstances, is not really sexy. While casino opponents in Connecticut have attributed increased traffic, crime and gambling addiction to Foxwoods and Mohegan, those problems would have to be breathtakingly deep and costly to equal the dollars that have flowed to the state. Located halfway between New York City and Boston, Foxwoods expanded as quickly as it could build, adding casino space and hotel rooms with little regard for cost or coherence. It is just off an exit on I, while Foxwoods is a minute ride down a winding two-lane road. The 11 family lines include strains of many other ethnicities, and most Pequots are a mix of several. It was not just entrepreneurial zeal that caused the Pequots to overreach. Forty thousand patrons pack into Foxwoods on weekend days. Resistance to gambling, however, has been overwhelmed by the need for new sources of public revenue in an era when it has become nearly impossible, at any level of government, to raise taxes or even to let temporary tax cuts expire. The silver-haired Fahrenkopf, a chairman of the Republican National Committee in the Reagan years, is known as an adroit Washington player, the type who can make light of his high status while also fully inhabiting it. Those figures come from only commercial casinos. The owner of this enterprise is the Mashantucket Pequot Tribal Nation. Pizza and held court late into the night at local bars. Some of the retail space in the vast corridors between its four large casinos is meant to look like a flea market. The initial lender to Foxwoods was Genting, a Malaysian conglomerate, but the tribe is now indebted to an enormous tangle of banks and bondholders. Foxwoods, Mohegan and other Indian casinos were not included. Barrow, director of the Center for Policy Analysis at the University of Massachusetts, Dartmouth, and an expert on the New England casino market, told me. He is analytical and low-key, a contrast to Skip Hayward, the tribal leader who cut the deals that built Foxwoods in a joint called Mr. The payments stopped just before Butera arrived in late , and more Pequots have been going to work at Foxwoods. Some people erroneously address Butler as Chief, a ceremonial and spiritual position that the Pequots have not filled for decades. But these were smart people. I told Butler that I found the Pequot Museum impressive. Fromson documents a history of racial tension in the tribe that deepened with the building of Foxwoods and the money it produced. But you see the contribution we make, in terms of jobs, and the taxes we pay. The furniture in the hotel rooms is big and overstuffed and makes you think about curling up and reading a book. These days the tribe is dealing with the latest improbability in its turbulent history: financial havoc. If you include everything — hotel space, bars and restaurants, theaters and ballrooms, spa, bowling alley — Foxwoods measures about 6. About half of that is estimated to have come from out-of-state residents, the majority of them from Massachusetts and New York.