Sports Betting, Online Gaming Deal Reached In CT, Lamont Says

CONNECTICUT — The state has reached a deal with the Mohegan Tribal Nation that could generate tens of millions of dollars in new revenue for Connecticut, and allow for sports wagering and online gaming.

The state will claim a 20 percent tax on new online gaming offerings, and a 13.75 percent tax rate on sports wagering. The move will place Connecticut on even footing with the gaming changes currently being offered or considered in neighboring states, according to Gov. Ned Lamont.

As part of the deal, the Connecticut Lottery Corporation will operate new sports-betting operations in Bridgeport and Hartford, have the right to operate up to 15 retail sports betting locations, and operate a distinct online sports betting brand, or "skin." The Lottery will also have the right to sub-license some of those brick-and-mortar locations pari-mutuel operators.

The state's two tribal nations, the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians have exclusive gaming rights in Connecticut, in exchange for a 25 percent cut of the slots revenue. The deal has brought in more than $8 billion to the state since it was first cut in the early 1990s, according to the Connecticut Mirror.

"This agreement represents months of hard work and dedication to getting a deal that’s best for the residents of Connecticut and moves our state forward when it comes to the future of gaming," Lamont said in a news release. "We are incredibly fortunate to have such a devoted partner in these efforts like the Mohegan Tribe, as they have been open to negotiation, honest discussion, and a positive path forward that is beneficial for both their tribe and the State of Connecticut."

A "sticking point" related to revenue-sharing is preventing the Mashantuckets from signing on to the new deal with the state, according to The Day. On Wednesday, a bipartisan group of 17 lawmakers from eastern Connecticut announced they will oppose the deal unless the second tribe signs on to it.

Paul Mounds, Lamont's chief of staff, responded: "The administration agrees that the Mashantucket Pequot Tribal Nation must be a party in any agreement, and that this agreement is best for the entire state, especially Eastern Connecticut, where the tribes employ thousands of people and contribute significantly to local economies and communities. This expansion of gaming in Connecticut is a financial benefit to both tribes and will provide long-term stability for both sovereign governments. Governor Lamont is urging the Mashantucket Pequot Tribal Nation to join this agreement immediately, and Eastern Connecticut legislators should do the same."

In his State of the State address in January, Lamont foreshadowed today's agreement, and last month's decision to try and legalize the use of recreational marijuana for adults.

"Sports betting, internet gaming and legalized marijuana are happening all around us," Lamont said. "Let’s not surrender these opportunities to out-of-state markets or even worse, underground markets."

The license arrangement to which the parties agreed is for ten years with a five-year extension option.

"The Mohegan Tribe is proud to have reached this agreement with Governor Lamont and the State of Connecticut," Mohegan Tribe Chairman James Gessner Jr. said. "This path will allow Connecticut to generate tax revenues from sports and online gaming that are competitive with other states, and help keep Connecticut with those states when it comes to growing our economy and benefiting the state budget. We’re thankful to Governor Lamont and his team, and we look forward to continued work with the General Assembly as this process continues."

See also: Retired Connecticut State Trooper Killed In Las Vegas

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