Q&A: 9 things you need to know about the gambling deal
Gov. Ned Lamont reached a deal Thursday with Mohegan and Mashantucket Pequot tribes for online gaming and sports betting. Here are answers to key questions about what it means for Connecticut residents and taxpayers.
What would the deal allow
me to do?
If approved by the General Assembly, people physically located in Connecticut could bet on sports events online and at locations across the state, and wager on other casino games online.
Who would run the online and sports wagering operations?
Mohegan Sun or a related Mohegan tribal business, and Foxwoods resort casino or a related tribal business, would separately hold master contracts with the state. The Connecticut Lottery Corp. would be allowed to operate 15 retail sports betting locations and run an online sports book. The Lottery Corporation would be allowed to sub-license some of those locations to Sportech, which owns and operates the Winners off-track betting locations in Connecticut, including at the large Bobby V’s locations in Stamford and Windsor Locks.
How much would the state get as a cut of the action?
Connecticut would charge an 18 percent tax rate on new online gaming, or iGaming, for five years, the the rate would rise to 20 percent. The state would charge a 13.75 percent tax on sports betting. The tax would be charged on the “revenue,” which is the gross winnings by the operators before expenses — not on the total
amount bet. Estimates are not yet available but Lamont’s budget assumes $47 million in added revenue for the state in two years. By comparison, New Jersey, which has dozens of online gambling companies, charges a 15 percent tax on revenues.
When would the new gaming start?
Approval by the General Assembly could happen quickly but lawmakers might try to change some of the provisions. The session ends at 11:59 p.m. on June 9. Federal regulators might also have to sign off on it. Once approved, the operators have said they could start within days. However, the state Department of Consumer Protection, which regulates gaming in Connecticut, will need time to turn the newly adopted law into published rules. It’s unclear how long that would take.
Which sports games would I be able to play?
The exact roster of games would depend on the companies
offering bets. But the sky’s the limit. DraftKings, for example, one of the largest sports betting providers, has a long list of sports and leagues on its websites, even darts. Companies such as DraftKings (which has an agreement with Foxwoods) often join with local gaming companies to offer a betting product. And the options within a sport are seemingly endless. For the Boston Celtics-Los Angeles Clippers NBA basketball game Tuesday night, for example, betters could wager on the overall point spread and the total number of points scored, not just for the whole game but for each quarter.
What about casino games?
New Jersey casinos offer slots, online poker, table games and other options. Most operators work on multiple platforms including mobile apps.
Would Bridgeport and other cities receive special consideration?
The deal between Lamont and the Mohegan and Mashantucket Pequot tribes allows the Lottery Corp., a quasi-public company, to open “new retail sports betting venues” in Hartford
and Bridgeport. That’s a far drop from the $675 million casino that MGM Resorts International proposed for Bridgeport Harbor in 2017, a project no one is now pushing. But as one Bridgeport lawmaker said, it’s a start.
Would this deal affect the state’s current gambling revenues?
Not directly. All of these companies pay a share of revenues to the state, or a tax, and those formulas would not change. For example, Foxwoods and Mohegan Sun pay 25 percent of slot revenue, a minimum of $160 million a year in total. It’s possible that online gaming and sports betting would affect the revenues of existing operations. And it’s possible that Foxwoods would claim the deal violates its agreement with the state, jeopardizing those payments.
Would gambling addiction programs be bolstered?
The short answer is yes but details were not announced Tuesday. Advocates for prevention and treatment of addiction have been a part of most hearings and public discussions at the legislature.