Mohegan Sun, a well-known casino and entertainment complex in Connecticut owned by the federally recognized Mohegan Tribe, recently announced that Tesla would set up a showroom with a sales and delivery center on its sovereign property this fall.

Sales & Delivery Center Opens at Mohegan Sun Casino Complex

The Tesla Sales & Delivery Center at Mohegan Sun will be situated within the casino complex, providing customers with the unique experience of test-driving vehicles around the resort. Additionally, Tesla plans to showcase its solar and storage products at the location, making it a comprehensive showcase of the company’s offerings for interested customers.

This decision marks Tesla’s second foray into tribal territories, as it was previously reported that the company planned to open another showroom on the lands of the Oneida Indian Nation in upstate New York by 2025, reported Associated Press.

The move to tribal lands comes as Tesla faces staunch opposition from traditional car dealerships and state lawmakers who have blocked the company’s attempts to obtain dealership licenses and establish direct-to-consumer sales in several states.

Hayden Reynolds, chairperson of the Connecticut Automotive Retail Association, emphasized the importance of maintaining a level playing field for all car dealerships in the state. While respecting the sovereignty of the Mohegan Tribe, Reynolds stated that the association still opposes Tesla’s direct-to-consumer model, claiming that Connecticut’s dealer franchise laws benefit consumers and promote healthy competition.

Tesla’s Victory in Delaware Paves Way for Direct Sales

Tesla has been engaged in various legal battles and advocacy efforts to alter state laws and regulations to enable its direct sales approach. The company secured a significant victory earlier in the year when the Delaware Supreme Court overturned a ruling preventing Tesla from selling cars directly to customers in the state.

Tesla’s move to open showrooms on tribal lands has been seen as a strategic way to work around the restrictive state laws. The company had previously established its first showroom and repair shop on Native American land in 2021, partnering with the Nambé Pueblo tribe in New Mexico.

Mohegan Bolsters PR and Advertising Teams

Mohegan has recently ramped up its PR and advertising efforts with a shake-up of its PR and advertising teams. In March Mohegan appointed Cody Chapman as PR Director and Charisse Huff as PR Manager to bolster its corporate PR team.

Both longtime members of Mohegan are focusing on external communication strategies and overseeing media relations for Mohegan’s properties, primarily in the Northeast. Additionally, in April Mohegan Sun appointed David Fausel as its director of advertising. With over two decades of experience in the advertising industry, Fausel will lead the company’s advertising and marketing strategy and provide strategic guidance for the “All in for Mohegan” ad campaign.

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Tesla and Native American gaming tribes are getting creative to provide more economic opportunity for the nearly-trillion dollar company as well as tribes that operate as business entities in some respects. They are bypassing antiquated auto dealer-protective laws at the state level to sell electric vehicles directly to consumers.

What happens in Vegas might or might not stay in Vegas, but what happens on sovereign tribal land is, for the most part, outside the purview of state lawmakers or law enforcement officials regardless.

Cutting Out the “Middle Man”

In many states, automobile makers are only allowed to sell electric vehicles to consumers through licensed (third-party) auto dealers. The laws, in more than two dozen states, either ban direct sales or greatly limit them and were designed to keep manufacturers from trying to bypass established dealerships with what used to be a novel product. Direct sales are banned outright in almost 20 states.

Industry stakeholders like the Electrification Coalition, a purportedly nonpartisan, nonprofit organization, say the laws are outdated and they would seem to hinder the organization’s goal of making it easier for consumers to get their hinds around the wheel of an EV. The coalition works with lawmakers and others at the state and federal levels.

“EVs are not well suited for the dealership model. There is a lot more information to convey for EVs during the sale process; questions on things like range, how and where to charge, and available incentives. Learning these details and answering questions for each potential new buyer costs dealers time,” the Electrification Coalition notes in a section of its website, titled: “EVs and Consumer Choice”.

Among the states with outright bans on direct sales of EVs to consumers is Connecticut – wherein the Mohegan Tribe’s reservation land is situated. On that reservation is Uncasville where the Mohegan Sun casino complex is located.

According to a 2021 (subscriber only) article in “The Day”, the resort “attracts 9 million visitors a year, many of them drawn by the performers who play Mohegan Sun Arena, which opened in 2001. The arena has hosted some 3,000 paid events that have drawn more than 13.5 million guests. Twenty-seven major acts have launched tours at the arena“.

The tribe intends to partner with Elon Musk’s Tesla to open a “state-of-the-art Tesla Electric Vehicle showroom” sometime this fall. As the casino resort is not located “in Connecticut” but rather on sovereign tribal soil, state laws such as the ban on direct EV sales do not apply there.

In addition to serving as a delivery center for online Tesla sales pick ups, there will be a full-service showroom inside the retail center known as The Shops, where visitors can shop for cars, kick the tires, and even test drive one or purchase one to drive off the site from the valet area of nearby Sky Tower.

Jeff Hamilton, president and general manager of Mohegan Sun said, “We’re really excited about this new Tesla EV Showroom opening this fall at Mohegan Sun.

“This endeavor with Tesla marks an electrifying milestone in Mohegan Sun’s commitment to fostering impactful relationships, promoting environmental sustainability, and offering cutting-edge experiences for our millions of annual guests.”

Not The First Tesla/Tribal Partnership

In June, the Oneida Nation announced a partnership with Tesla to open a showroom at the tribe’s sprawling Turning Stone Resort Casino in Upstate New York. Tesla has also opened a showroom in New Mexico via an agreement with the First Nation of Nambe Pueblo. The tribe operates the Buffalo Thunder Resort Casino nearby.

In addition to more than a dozen subsidiaries in the gambling business in the US, the Mohegan Tribal Gaming Authority d/b/a Mohegan Gaming & Entertainment also has ventures internationally including Inspire Integrated Resort Co., Ltd. in the Republic of Korea, MGE Niagara Entertainment Inc. in Ontario (Canada), and MGE Hellinikon B.V. in The Netherlands

Non-gaming assets include about half a dozen franchises in the Jersey Mike’s sandwich chain as well as the Mohegan Holding Company also owns interests in sustainable energy resources, manufacturing, and digital technologies.

Source: Tesla Continues Partnering With Tribal Casinos for Vehicle Showrooms, CDC Gaming Reports, July 26, 2023

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