Sports betting in state likely to start in October
Final hurdle cleared with federal approval of state-tribal compacts
Federal officials have approved changes in the compacts between Connecticut and the tribal owners of Foxwoods Resort Casino and Mohegan Sun, clearing the way for long-awaited sports betting and expanded online gambling in the state.
Gov. Ned Lamont and tribal officials on Thursday announced the decision by the U.S. Department of the Interior. The governor and tribal officials said sports betting and online gambling will likely be available in October.
“This critical step in the process of modernizing our gaming landscape here in Connecticut ensures that our state will have a competitive, nation-leading marketplace for wagering both in-person and online,” Lamont said.
State Sen. Cathy Osten, D-sprague, said the final step is the issuance of gambling licenses by the state Department of Consumer Protection.
“That will be the final piece of the puzzle,” she said.
The law approved by the legislature opens the door to in-person and online options.
In addition to sports betting at the casinos, the Connecticut
Lottery is working with Sportech, which already runs off-track betting outlets in the state, to operate up to 15 retail gambling venues across the state.
The retail sites will be at 10 Sportech sites in Hartford, Manchester, Milford, New Britain, New Haven, Norwalk, Stamford, Torrington, Waterbury and Windsor Locks. Five more sites, including an additional location in Hartford and one in Bridgeport, will be announced at a later date. Hartford’s XL Center is a possible location for the Hartford gambling venue.
There will also be multiple online options. Foxwoods and Mohegan Sun are working with online sports betting operators Draft Kings and Fanduel, respectively. The lottery announced Aug. 12 it will partner with Chicago-based Rush Street Interactive to run an online sportsbook.
Rodney Butler, chairman of the Mashantucket Pequot Tribal Nation, said the federal decision “begins an exciting new chapter for the Mashantucket Pequot Tribal Nation.”
Tens of millions of dollars in revenue are expected in the coming decade from sports betting and access to gambling on phones, tablets and laptops. The Mashantucket Pequots will “enhance investments” in support of the tribe, contribute more revenue to the state and provide a “new level of entertainment,” Butler said.
Mohegan Tribal Council
Chairman James Gessner Jr. called the federal action a “milestone achievement” for the state and tribes.
“This is not just a regional issue,’ he said. “It will have a statewide impact as Connecticut works to meet critical needs as it recovers from the pandemic.”
Changing the compacts had been a critical step to bringing sports betting to Connecticut.
The state and the tribes agreed that Connecticut was losing sports betting revenue to other states. But the two sides split on how to rewrite the compacts that have given the Mashantucket Pequots and Mohegans exclusive gambling rights in exchange for a 25% tax on slot revenue that has brought billions of dollars to state coffers since the early 1990s.
Then-gov. Dannel P. Malloy began negotiating with tribal officials in 2018 after the U.S. Supreme Court lifted a federal ban on state authorization of sports betting, Talks foundered and he left office in January 2019. Lamont, who succeeded Malloy, sought a broader update of Connecticut’s gambling rules to adapt it to digital technology.
The legislation he signed into law May 27 imposes an 18% tax 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. It also establishes a 13.75% tax rate on sports wagering