Connecticut Governor Ned Lamont has signed a bill into law that will legalize online gambling and sports betting in the state — but only if there’s a thumbs-up from Washington first.
House Bill 6451 received bipartisan support and was recently passed by Connecticut's House of Representatives and Senate, sending the legislation to Lamont for final approval.
The gaming-related bill includes mobile and retail sports betting that could be provided by the Mashantucket Pequot and Mohegan tribes, as well as the state lottery.
With H.B. 6451 signed, Lamont and the two tribes now need the United States Department of Interior to approve a change to the state’s compact with the Mashantucket Pequot and Mohegan. If and when that’s received — a decision that could come this summer — the sports betting can begin.
“By signing this bill into law, Connecticut is now on the cusp of providing a modern, technologically advanced gaming experience that will be competitive with our neighboring states and positions us for success into the future,” Gov. Lamont said in a press release issued on Thursday. “I am confident that the federal government will see fit to approve these amendments to our compact, and in the coming months we can launch a modernized, 21st century gaming experience in Connecticut.”
Connecticut’s move to legalize sports betting would add it to the roster of more than 20 states that have done the same following a landmark 2018 decision by the U.S. Supreme Court that made it all possible. The “Constitution State” is also aiming to have its sports-wagering infrastructure in place for football season, one of the most popular times of the year for bettors.
'More than a business'
H.B. 6451 allows the Mashantucket Pequot, who own Foxwoods Resort Casino, and the Mohegan, who own the Mohegan Sun casino, to conduct in-person sports betting on their lands.
The legislation also provides one “skin,” or brand, to the tribes that they can use to offer online sports wagering. The bill allows them to partner with a licensed online gaming operator to help provide that service, such as via the partnership already struck between DraftKings Inc. and the Mashantucket Pequot.
“Gaming is more than a business to our tribe, it is the way we fund our government, pay for our children’s education, care for our elders, and provide healthcare to our members,” Mashantucket Pequot Tribal Chairman Rodney Butler said in Thursday's release. “The agreement not only ushers in a new modern era of gaming, but it solidifies our tribal/state partnership for years to come.”
The Connecticut Lottery Corp. (CLC) will be able to conduct online sports wagering too— and with a partner, which it is currently in the process of selecting — in addition to taking bets at up to fifteen brick-and-mortar facilities. The CLC could partner with another business, such as an off-track betting facility, to help provide that retail betting.
Both the lottery and the tribes would pay a 13.75 percent tax on their gross gaming revenue from online sports betting. Another US$500,000 would have to be paid annually by each tribe and US$1 million from the CLC to fund problem-gambling programs.
“These frameworks are subject to several conditions, principally that the governor must first enter into specific contractual agreements with the Mashantucket Pequot and Mohegan tribes,” a May 21 analysis of the bill notes. “These agreements must then be approved by the U.S. Department of Interior (DOI) secretary and published in the Federal Register, pursuant to the federal Indian Gaming Regulatory Act (IGRA) and its implementing regulations.”
A fantasy shutdown?
Lamont and the tribes announced their new agreement in March, saying it would generate “tens of millions of dollars” in additional revenue for the state.
However, the same bill setting up a new framework for sports betting also does so for online casino gambling, keno and fantasy contests.
"The bill generally authorizes the tribes and the Connecticut Lottery Corporation (CLC) to operate these games subject to specific requirements, including limiting the authorizations to an initial 10-year period with an option for a five-year renewal," the analysis noted.
Yet the fantasy-related provisions have caused a bit of a stir, as H.B. 6451 requires all “online gaming operators” that contract with the tribes or the lottery to provide internet games, such as fantasy sports, to obtain a license.
This legislation “could result in the shutdown of paid fantasy sports in Connecticut for a significant period of time, possibly through the NFL season,” the Fantasy Sports and Gaming Association warned on May 20.
“On behalf of all fantasy sports players in the state, the Fantasy Sports & Gaming Association (FSGA) strongly urges the General Assembly to make the necessary changes to the legislation to ensure Connecticut residents can continue to participate in the fantasy sports contests they know and love.”
No such accommodations for the fantasy industry have been made yet. For now, though, the proponents of the bill remain enthusiastic about the opportunity it provides.
"The advantages of these changes will be felt statewide, to the benefit of Connecticut residents and our tribal members, at a time when our governments are collectively working to recover from the pandemic and provide vital services," Mohegan Tribal Council Chairman James Gessner Jr. said in Thursday's release.
