Sports & Online Betting Deal Reached Between CT, Casino Tribes

CONNECTICUT — Gov. Ned Lamont, and the operators of the Mohegan Sun and Foxwoods casinos, announced on Thursday that Connecticut and the two gaming entities had reached an agreement to "modernize gaming options available to state residents, including allowing for sports wagering and online gaming."

Earlier this month, Lamont and Mohegan Sun announced a sports betting and online gambling deal, but Foxwoods was not a part of it. That prompted an outcry from legislators in the eastern part of the state that they would oppose it unless Foxwoods also was involved. In December, Foxwoods announced its own sports betting deal with DraftKings.

Foxwoods is operated by the Mashantucket Pequot Tribe, and Mohegan Sun is operated by the Mohegan Tribe. The respective chairs of the tribes, Rodney Butler and James Gessner Jr., joined Lamont in the announcement Thursday.

State officials claim the new agreement will generate tens of millions of dollars in revenue for Connecticut, while keeping the state competitive with gaming currently being offered or considered in neighboring states.

Additionally, the deal allows for the Connecticut Lottery Corporation to be a partner in the effort to modernize the state’s gaming landscape.

"Connecticut is on cusp of providing a modern, technologically advanced gaming experience for our residents, which will be competitive with our neighboring states," Lamont said in a statement. "Our state’s tribal partners have worked with my administration thoughtfully, deliberately, and in a constructive fashion for the past few months, and we have achieved an agreement that is best for Connecticut residents and their respective tribal members."

As spelled out by the state, the agreement includes the following key elements:

• An 18 percent tax rate for the first five years on new online commercial casino gaming (or "iGaming") offerings; after that period, the tax rate will increase to 20 percent for at least the next five years
• A 13.75 percent tax rate on sports betting
• Connecticut Lottery shall have the right to operate 15 retail sports betting locations in the state, two of which will be in Bridgeport and Hartford. Additionally, the lottery system will be able to operate an online sports betting skin, and have the right to sublicense locations to the state-licensed parimutuel operator
• License agreement to be for ten years with a five-year extension option
• Connecticut Lottery Corporation's iLottery and Keno games can be expanded to include the sale of draw tickets online
• Both tribes agree to halt development of an East Windsor casino through the duration of this agreement

The agreement still needs to be ratified by the Connecticut General Assembly, and Lamont said his administration and the tribal operators will work to gain the support of legislators.

"The Mohegan Tribe is very thankful to our partners in government, both the Mashantucket Pequot Tribal Nation and the State of Connecticut, for reaching collective agreement on a path forward for modernizing our state’s gaming entertainment industry," Gessner Jr. said. "This will allow Connecticut to generate tax revenues from sports and online gaming that are competitive with other states, to the benefit of both state and local municipal budgets, as well as our tribe’s members."

Butler also thanked Lamont and the Black and Puerto Rican Caucus, among others for supporting the effort.

"We’re proud of this landmark agreement with the State of Connecticut that cements a historic moment for our Tribal Nation. This agreement bolsters the state’s economic development and growth, and allows us to develop a stable economic foundation for the future of our tribal community."