Mashantucket Pequots Announce Support For Online Gaming

MASHANTUCKET, CT — In advance of a highly anticipated U.S. Supreme Court decision regarding the Professional and Amateur Sports Protection Act which may allow states to legalize sports betting, the Mashantucket Pequot Tribal Nation reaffirmed its support for legalized sports betting and regulated online gaming.

Its support was given at a public hearing before the Connecticut General Assembly’s Committee on Finance, Revenue and Bonding in consideration of SB 540: An Act Authorizing Sports Wagering and Online Lottery Draw Games in the State, according to a release.

On behalf of the Tribe’s flagship property, Foxwoods Resort Casino, Executive Director of Online Gaming Seth Young explained how combining these opportunities and continuing to recognize the Mashantucket Pequot and Mohegan Tribes as exclusive gaming operators would be of great benefit to the State of Connecticut.

“We estimate Connecticut can collect $40 million in new revenue over five years through legalized sports betting, starting at $6.5 million in year one and escalating to $9 million by year five,” Young said in a release. “But the greater opportunity is in combining online gaming and sports betting operated by the state’s exclusive gaming partners, the Mashantucket Pequot and Mohegan Tribes, which would generate a massive $127.7 million in revenue to the state over the course of five years—more than double the opportunity for sports gambling and daily fantasy sports combined. It would also offer Connecticut the best chance at capturing the existing black market.”

Young also cautioned that SB 540, as drafted, would allow sports leagues the power to determine whether or not Connecticut will be allowed to recapture revenue currently wagered in an illegal black market.

“The demands of the sports leagues make supporting this bill, as written, a vote for the continued success of the unregulated black market, a vote against revenue enhancement to the state, and a vote against common sense,” Young said.

Officials said online gaming became a major contributing factor in the turnaround of Atlantic City, helping to increase new customer visitation to land-based properties and drive incremental revenue. In 2013 online gaming represented 0.3 percent of New Jersey’s net gaming revenue, but by 2017, revenue had grown to 10 percent.

“Connecticut has a similar destination style gaming market as New Jersey," Young said, "and with competition building in Massachusetts similar to what happened to Atlantic City, we believe online gaming will be a major contributing factor to stability and future growth for our state.”

Officials said today’s iGaming technology also helps to ensure the safety of online gaming. Regulated operators can safeguard against money laundering, fraud, cheating, and unauthorized access by minors, and can effectively ‘geo-locate’ their customers, ensuring legal compliance within the borders of the operational jurisdiction.

Regulated operators can also manage responsible gaming programs.

“Legalized online gaming is not only safe," Young said, "it also means job growth and innovation, and would help to reduce the state’s budget deficit while encouraging tech industry growth and development.”

Mashantucket Pequot Chairman Rodney Butler co-authored a written testimony with Mohegan Chairman Kevin Brown to assert both Tribes’ positions as the state’s exclusive gaming partners for more than 25 years.

The chairmen also conveyed the Tribes’ willingness to work with the state to develop a regulated and appropriately taxed Sports Betting and iGaming market and reaffirmed their gaming exclusivity, which would be at risk should the state change its laws to allow gaming by someone other than the Tribes.

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