ConnecticutGov. Ned Lamont has filed legislation that could make CT sports betting a reality this year.
Lamont included sports betting revenues in his budget on Wednesday. To make that happen, he also filed a bill to expand state tribal gaming compacts to include sports betting and online casino.
Mar 05, 2021 Sports betting revenue would be taxed at 13.5% while iGaming gets a 20% tax rate. The Mohegan Indians get one skin. The tribe signed Kambi as a sports betting partner nearly two years ago. The Connecticut Lottery also gets an online sports betting skin. That’s in addition to 15 retail locations that can allow sports betting. In 2019, the first full year of legalized sports betting since the Supreme Court invalidated a federal law that prohibited its legalization, approximately $13 billion was wagered in 11 states.
“Our neighboring states are moving forward with sports betting and i-gaming, and Connecticut should not leave these opportunities for other states to benefit from our inaction,” Lamont said in his budget address.
“My administration has been in active negotiations with our tribal partners to bring the state’s gaming economy into the digital age. And I am submitting legislation which reflects what I believe to be the best bet in ending this stalemate of inaction in a way which is in the best interest for the entire state.”
What it means for CT sports betting
Lamont appears to be essentially acquiescing to the CT tribes. They have long made it clear they won’t let Connecticut online sports betting happen without them in charge. They have exclusive gaming rights in Connecticut in exchange for 25% of slot revenue and claim those rights extend to sports.
After years of negotiation and legal opinions, Lamont is apparently accepting that.
The Governor’s budget proposal assumes $47.3 million in FY 2023 from the expansion of gaming.
Turnaround for Lamont?
As recently as last year, Lamont indicated support for competition in the Connecticut sports betting market. Spokesman Max Reiss told the Hartford Courant:
“[Lamont] wants to sign a sports betting bill into law over the next few months,” Reiss said. “Any such proposal, however, must be designed to avoid and withstand endless legal challenges, include multiple, competing mobile platforms off the tribes’ reservations, and build upon the existing footprints of all of the state’s existing gaming operators.”
The stakeholders in the debate took part in another legislative hearing last month. That meeting produced seemingly as little progress as any over the years.
Rep. Kurt Vail said in that hearing:
“I know this: I’ve been up here seven years on this committee. We’ve talked about this over and over and we end up with nothing because everyone takes their ball, goes in the corner and refuses to give an inch.
“And here we have, again it’s what, 2021? 2015 we were talking about this and we have nothing. So somebody needs to give up something and I think there’s a way for everybody to win.”
The home stretch?
Even the inclusion of sports betting in the budget is a big deal.
“When gambling expansion is a line-item in the budget, it means Governor Lamont is committed to get a deal done,” said gaming industry lobbyist John Pappas.
“Throughout this entire process the tribes have made clear that retaining their exclusivity is a priority. I don’t think the proposed revenue will materialize unless that is part of the agreement. Internet betting in Connecticut is going to have to be a limited market to start, or no market at all.”
What’s next for CT sports betting?
CT legislators still need to approve a bill to actually legalize and regulate sports betting. However, that is already in motion via SB 146, which has 17 sponsors from both chambers. There is a competing bill, SB 570, that lacks the clout of SB 146.
On the face of it, the big winners appear to be DraftKings and Kambi.
DraftKings has a deal to run betting for the Mashantucket Pequot Tribal Nation, the owner of Foxwoods Resort Casino. Meanwhile, Kambi has a deal with the Mohegan.
As it stands, the two would have the market of around 3.6 million people to themselves.
Gov. Ned Lamont took a risk when he announced a Connecticut sports betting agreement with just one tribal partner instead of both.
That’s left some key parties pretty upset.
Lamont’s office announced an agreement for expanded gaming with the Mohegan Tribe Tuesday. The announcement came after a joint Public Safety and Security Committee hearing where hopeful CT sports betting operators weighed in on the issue.
Rodney Butler, Chairman of the Mashantucket Pequot Indians, said he doubted a two-sided announcement would come with his tribe still in negotiations at the hearing. When the announcement finally did come, Butler and legislators that support the tribe both spoke out about the deal.
Legislators, Butler slam Connecticut sports betting announcement
Butler said a two-sided announcement “goes at the heart of this deal,” so he was a bit frustrated late Tuesday. Butler told local media it was “extremely disrespectful” the governor’s office moved forward with an announcement:
“After months of closed-door negotiations, it’s offensive that Governor Lamont would announce an agreement with only one of the two Tribal Nations that have been a party to the negotiations, despite full knowledge that both sovereign Nations are needed to implement any agreement.
“We have participated in these discussions in good faith and consider today’s events extremely disrespectful in terms of process and substance. Now that the Governor Lamont has laid bare the confidential terms of our negotiations, you can see the significant and substantial concessions made by both Tribes. Just permitting Lottery to participate in full sports betting, absent tax or revenue share, is a major allowance.
“We have one remaining point of contention that is easily resolved if some sense of mutual respect is afforded for the specific needs of our tribal community. We remain open to discussions and hope this is resolved quickly for the benefit of the entire state of Connecticut.”
A delegation of 17 legislators from Eastern Connecticut also spoke out in a letter to the governor’s office:
“We remain committed to the future and to the modernization of gaming in Connecticut. However, we cannot accept this agreement as it is incomplete. It is necessary that the agreement include both the Mohegan Tribe and the Mashantucket Pequot Tribal Nation. Unless an agreement includes both tribes, the eastern Connecticut delegation simply cannot support it.”
Connecticut sports betting details
The announcement between the governor’s office and the Mohegan Indians finally gave insight into expanded gaming in the state:
- Sports betting revenue would be taxed at 13.5% while iGaming gets a 20% tax rate.
- The Mohegan Indians get one skin. The tribe signed Kambi as a sports betting partner nearly two years ago.
- The Connecticut Lottery also gets an online sports betting skin. That’s in addition to 15 retail locations that can allow sports betting.
- New Lottery-run sports betting venues would be built in Bridgeport and Hartford.
- The Lottery can sub-license some of those retail operations to Sportech, but Sportech won’t get an online license.
Can You Bet On Sports In Connecticut
Sportech threatens to sue
Sportech is the state’s exclusive parimutuel wagering operator and has lobbied for its inclusion for years. The company is included in the plans, but only if the Connecticut Lottery allows it.
Sportech isn’t taking its place in the proposed expanded gaming agreement too well, according to a statement:
“One year ago, Governor Lamont stated he would seek a fair resolution regarding gaming expansion involving existing gaming operators that ‘must be designed to avoid and withstand endless legal challenges.’ Regretfully, the Governor’s announcement this afternoon, that principally excludes Sportech from expanded gaming, leaves us with little option but to pursue legal recourse on behalf of our 400 Connecticut employees.”
Sports Betting In California
Sportech’s main argument is that sports betting is not a casino game. That means it shouldn’t be only awarded to the two tribes, which have exclusivity over casino gaming in the state.