Sports betting, online gambling get nearer
One step closer to starting in Connecticut after legislative committee approves emergency regulations
HARTFORD — With the National Football League season starting in nine days, a key legislative committee approved emergency regulations Tuesday to allow sports betting and online gambling for the first time in Connecticut.
The normally low-profile Regulation Review Committee approved 82 pages of regulations for the largest expansion of gambling in Connecticut history — ending years of negotiations and debates over the future of wagering in the state.
The committee voted 9 to 4 with four Republicans raising questions about the need for emergency regulations so that sports betting could begin by Sept. 9 — the first day of the professional football season, which traditionally generates a high volume of betting. Democrats, however, said the state needs to move forward as officials had worked behind the scenes to write the updated rules for a complicated industry.
While four Republicans raised objections, the measure passed on a bipartisan basis as two Republicans — co-chairwoman Nicole Klarides-ditria of Seymour and Rep. Christie Carpino of Cromwell — voted in favor.
Sports betting is now one step closer after years of delays since a landmark ruling by the U.S. Supreme Court in May 2018 that allowed each state to determine legalized wagering. The measure still requires approval by federal Bureau of Indian Affairs at the U.S. Department of Interior, which oversees the Native American tribes that operate Mohegan Sun and Foxwoods Resort Casino.
“We expect action from the federal Department of Interior within the next two weeks on the compact amendments submitted in late July, and it is our understanding that once that approval comes, the state Department of Consumer Protection will issue master wagering licenses,’’ said Rodney Butler, chairman of the Mashantucket Pequot Tribal Nation. “With the NFL season kickoff fast approaching, we are working to launch online gaming and sports betting as soon as we are legally allowed to do so.”
The emergency regulations that were approved Tuesday will be studied further and will be subject to a vote on final regulations early next year after the legislative session starts in early February.
Gov. Ned Lamont, who struck a landmark deal with the tribes and the Connecticut Lottery Corporation after negotiations had stalled repeatedly in the past, hailed the committee’s vote. He said the state “has crafted nation-leading legislation which will position our state as a leader’’ in the expanded gambling landscape as sports betting has already spread to multiple states,
Problems with gambling payments
One of the biggest issues Tuesday was payment of gambling debts because legislators are concerned that problem gamblers could end up spending too much money and eventually become bankrupt. As such, the law will allow for the use of one credit card at a time, which is supported by Lamont.
State Sen. Cathy Osten, a Sprague Democrat who strongly supports the tribes who run two casinos in her district in southeastern Connecticut, said the legislature should not “limit our possibilities” on payments “which are regularly used by many, many people.”
Those payments include methods such as Apple, Venmo or Paypal, which are currently not allowed because they are not specifically included in the regulations.
State consumer protection commissioner Michelle Seagull said the department will continue studying the issue to determine whether it might require a change in state law “if the state decides it wants to go in that direction.”
After the committee’s approval, Osten said, “Today is the culmination of years of hard work to bring Connecticut up to speed with modern betting practices and to give our tribal partners, who are some of the largest employers in the state and who have contributed billions of dollars to our economy, a more modern and expanded approach to the gaming portion of their entertainment, retail and restaurant business here in Connecticut.’’
In another concern, Sen. John Kissel, an Enfield Republican, raised questions about gambling payments made through joint accounts, particularly with broken marriages and disputes in divorces. Kissel called for blocking the use of joint accounts because one partner might be addicted to gambling and the other partner was not.
“It puts these relationships at much greater risk of running into trouble,” Kissel said, adding that one partner might find out after the fact that their joint nest egg “has vanished.”
But officials said the language blocking joint accounts had already been deleted recently as the regulations were being crafted through various drafts. As such, joint accounts would be allowed, at least in the short term.
Seagull said casual gamblers who only have joint accounts would not be able to pay for gambling if joint accounts were blocked.
“People who have a significant [gambling] problem are going to find ways around it,” Seagull said. “We’re not doing Venmo. We’re not doing Paypal.”
The issue of payments was not resolved Tuesday and is subject to further review by the legislature over the next six months before final regulations are approved, which requires public hearings.
For years, gamblers have been blocked legally from using credit cards to pay for lottery tickets, officials said. But now, credit cards will be able to be used to pay for online gambling.
“The law of the state has been that you couldn’t gamble on credit,” Seagull told the committee.
Kissel said he voted against the emergency regulations because he saw no need to rush the vote on the regulations to get them completed before the NFL season.
“The Land of Steady Habits. I’d rather get it right,” Kissel said. “I don’t want Connecticut to turn into Pottersville . ... Someone can lose their entire life’s savings in their cellar overnight . ... I think it’s a dangerous thing . ... I don’t view this as wonderful for the state of Connecticut.”
Emergency regulations, Republicans said, are normally limited to issues like public safety or health, rather than gambling.
“I’m not here to relitigate or reargue the original bill,” said Rep. David Rutigliano, a Trumbull Republican who voted against the regulations. “I just didn’t think it was an emergency. It’s a little transparent that we’re trying to beat the kickoff to the NFL season, which I think is outrageous. We have twisted and turned the state government and all its power to beat a deadline that didn’t need to be beat. ... I don’t think we needed to rush.”
Regulations review normally operates in obscurity at the Capitol and escapes the attention given to the high-profile committees like judiciary, appropriations, and finance, among others.
“I believe we have a lot more people watching this meeting than usual, so welcome to those who have not watched a regs review meeting,” said Sen. James Maroney, a Milford Democrat who co-chairs the bipartisan committee.
Despite Republican concerns, Maroney strongly supported the regulations.
“These had to be done quickly,” Maroney said. “They seem to have gotten them right. We know that we are setting up a major industry for the state, and we all know that businesses need certainty.”