Legal sports betting has yet to begin in Connecticut, but already there has been a major shift that could be summed up as Kambi out, FanDuel in.
FanDuel Group and Mohegan Gaming & Entertainment (MGE) announced a partnership on Wednesday that, pending licensing and regulatory approvals, will see FanDuel provide retail and online sports betting using MGE’s access to the Connecticut market.
“Sports bettors and fans across the state of Connecticut will have access to FanDuel’s industry-leading online and mobile betting experience this fall with wagering options available for professional football, basketball, baseball, hockey, and more,” a press release said. “Additionally, FanDuel will supply an online casino experience under the Mohegan Sun brand and will operate daily fantasy sports in Connecticut.”
Wednesday’s news follows last week’s announcement that Mohegan Sun-owner MGE and Malta-headquartered sports betting services provider Kambi Group plc had amended a Connecticut-related arrangement.
Kambi had agreed in 2019 to provide its online and retail sportsbook technology to Mohegan Sun. The new deal allowed MGE to work with other parties for its wagering plans and for Kambi to still get paid.
"While we had been looking forward to supporting MGE become a sports betting leader in the Connecticut market, the amicable discussions between both parties have found a positive conclusion, with MGE respecting Kambi's financial interests for the duration of the original agreement,” said Kristian Nylén, chief executive officer and co-founder of Kambi, in a press release.
A heavyweight matchup
However, the latest news also suggests that sports betting in Connecticut is shaping up to be a battle of industry heavyweights. And given the relatively smaller size of Connecticut compared to some other states, it could turn out to be a fight in a phone booth.
Connecticut Gov. Ned Lamont signed a bill in May to legalize retail and online sports betting in his state. That legislation stemmed from a gaming agreement Lamont’s administration struck earlier in the year with the Mohegan Tribe and Mashantucket Pequot Tribe that allows them, as well as the Connecticut Lottery Corp., to offer sports wagering, online gaming, and fantasy contests.
While the agreement still requires approval from the federal government, the tribes and the lottery have been preparing themselves for launch.
The CT Lottery put out a request for proposals for a sports betting partner but has yet to announce a winner. Meanwhile, the Mashantucket Pequot Tribe, which owns and operates Foxwoods Resort Casino, has partnered with DraftKings Inc. on online sports betting and daily fantasy sports (DFS).
Lamont recently announced that the Connecticut Department of Consumer Protection had issued provisional DFS licenses to wholly-owned affiliates of the Mashantucket Pequot, the Mohegan, and the CT Lottery. DraftKings and FanDuel have contracted with the tribes’ affiliates to offer daily fantasy sports.
“This short-term step allows for the continuation of fantasy sports in Connecticut as we continue to move forward to modernize our gaming landscape in Connecticut,” Lamont said in a press release.
More broadly, FanDuel’s entrance now means that at least two of the bigger names in sports betting will have a presence in Connecticut, and will have to try to outdo each other to gain and keep market share.
GAME CHANGER: Mohegan Sun Casino and FanDuel have teamed up to set up a retail and online sports betting location in Connecticut. #Mohegansuncasino #Connecticut https://t.co/FgOd31Drth
— News12CT (@News12CT) July 7, 2021
The deal between FanDuel and MGE also extends to the retail sports betting experience inside the Mohegan Sun. A temporary sportsbook will be placed inside the casino with four live-betting windows and 16 self-service wagering terminals, according to the press release. A permanent sportsbook location is expected to be opened this winter.
“Mohegan Sun is an iconic casino and entertainment destination in the Northeast, and we are excited to announce our first tribal gaming partnership with one of the leading tribal operators in the United States,” said Amy Howe, president of FanDuel Group, in the release. “We have some incredible plans for the retail space at Mohegan Sun, with the potential to be the largest FanDuel Sportsbook in the United States. When we combine the retail sports betting experience with the opportunity for online sports betting and iGaming, Connecticut is going to be a key state for us as we look towards the start of football season.”
