An agreement between Gov. Ned Lamont and Connecticut tribal nations has opened the door for the state to compete with its Northeast neighbors in legalized sports betting.
Lamont announced the 10-year deal — with a five-year extension option — with the Mashantucket Pequot and Mohegan tribes to modernize gaming options through the Connecticut Lottery Corp., saying the agreement will generate “tens of millions of dollars” in new revenue.
“Connecticut is on cusp of providing a modern, technologically advanced gaming experience for our residents, which will be competitive with our neighboring states,” Lamont said.
The tribes have had exclusive rights to casino gambling in the state since the early 1990s. Mashantucket and Mohegan operate Foxwoods Resort and Mohegan Sun casinos, respectively, in the state’s southeastern corner.
A taxation compromise helped break a logjam. The deal, which the General Assembly and the U.S. Department of the Interior must approve, includes a 18% tax rate for the first five years on new online commercial casino gambling or “iGaming” offerings, followed by a minimum 20% rate for at least the next five. The rate on sports wagering will be 13.75%.
Connecticut Lottery will have the right to operate 15 retail sports betting locations, as well as operate an online sports betting skin. The Lottery will open retail sportsbooks in Hartford and Bridgeport, while both tribes agree to halt development of an East Windsor casino throughout this agreement.
Within New England, Rhode Island and New Hampshire already have legalized sports betting. Connecticut stands to become the third northeast state with online casino gambling, behind New Jersey and Pennsylvania.
Lee Igel, a clinical professor at New York University’s Tisch Institute for Global Sport, said Connecticut is “keeping up with the northeast Joneses, and some others along the eastern seaboard, all the way to Florida.”
“The Connecticut agreement has been evolving for a while, but is even more interesting to consider as nearby spots, from Queens to the Catskills and Poconos to Atlantic City, keep aiming to up their gaming game,” he added.
In New York, Gov. Andrew Cuomo and the legislature have less than two weeks to finalize a budget agreement that could include sports betting mechanisms, although the governor and lawmakers are at odds over limited-operator vs. multi-operator proposals.
An X factor is Cuomo’s political clout. The governor is facing an impeachment investigation and multiple calls to resign amid accusations of sexual misconduct and covering up data on COVID-19 related nursing home deaths.
Connecticut and its subdivisions stand to receive about $10 billion as part of the $1.9 trillion American Rescue Plan that President Boden signed. The state government itself will receive roughly $2.6 billion, with a separate $142 million for capital projects.
Cities and towns stand to receive about $870 million. The state will redirect a further $691 million in county aid to municipalities because county governments don’t exist.
