An agreement has been reached with the Mashantucket Pequot tribe, which operates the Foxwoods casino, that will allow the state to modernize gaming options available to Connecticut residents, including allowing for sports wagering and online gaming.
A similar agreement was reached with the Mohegan tribe, which operates Mohegan Sun, earlier this month.
According to Gov. Ned Lamont, the agreement will generate tens of millions of dollars in new revenue for the state, while keeping Connecticut competitive with gaming currently being offered or considered in neighboring states.
The agreement also provides the inclusion of the Connecticut Lottery Corp. (CLC) as a partner in the effort to modernize the state”™s gaming landscape.
Key components of the agreement include:
- An 18% tax rate for the first five years on new online commercial casino gaming (or “iGaming”) offerings, followed by a 20% tax rate for at least the next five years.
- A 13.75% tax rate on sports wagering.
- CLC shall have the right to operate 15 retail sports betting locations, as well as operate an online sports betting skin.
- CLC will have the right to sublicense locations to Sportech, the state-licensed parimutuel operator.
- CLC will undertake new retail sports betting venues in Hartford and Bridgeport.
- License agreement will be for 10 years with a five-year extension option.
- Expansion of iLottery and Keno through the CLC, including the sale of draw tickets online.
- Both tribes agree to halt development of an East Windsor casino through the duration of the agreement.
“Our state”™s tribal partners have worked with my administration thoughtfully, deliberately and in a constructive fashion for the past few months, and we have achieved an agreement that is best for Connecticut residents and their respective tribal members,” Lamont said. “We will work to see it ratified and look forward to doing so through a collaborative effort, to include working with elected leaders in the General Assembly.”
“This will allow Connecticut to generate tax revenues from sports and online gaming that are competitive with other states, to the benefit of both state and local municipal budgets, as well as our tribe”™s members,” Mohegan Tribal Council Chairman James Gessner Jr. said. “We look forward to continued work with the General Assembly on this topic, especially the many dedicated legislators who have partnered with and supported Connecticut”™s tribes throughout this process.”
“We”™re proud of this landmark agreement with the state of Connecticut that cements a historic moment for our tribal nation,” Mashantucket Pequot Tribal Chairman Rodney Butler said. “This agreement bolsters the state”™s economic development and growth and allows us to develop a stable economic foundation for the future of our tribal community.”
Sportech, which had lobbied hard to play a major role in iGaming and an increased presence in sports wagering ”“ it operates the Bobby V”™s in Stamford, among other venues ”“ indicated after the Mohegan announcement that it was considering taking the matter to court.
“Sportech supports expanded gaming in the state; however Federal and State law mandates a level playing field,” the company said in a statement this morning. “Today”™s announcement does not appear to offer that level playing field; Connecticut consumers will be deprived of a healthy competitive betting marketplace and the Connecticut jobs that Sportech supports will be at risk.
“We continue our dialogue with the Administration in pursuing gaming expansion that does not contravene laws and discriminate against not only our employees, but all Connecticut consumers,” it concluded.
