Connecticut Online Sports Betting Could Be Sooner Than Expected
Connecticut online sports betting has taken a positive twist. This is after the recent meeting between Governor Ned Lamont and the Mashantucket Pequot tribe came to an agreement to finalize an agreement.
This deal will allow the Foxwoods Casino operator to propel a statewide mobile iGaming and sports betting action. The Mohegan Tribe, of the Mohegan Sun, recently announced their own digital gaming deal earlier in the month.
Details Surrounding the Bill
The Pequots, Mohegans and even the state lottery will now be able to operate online sportsbooks whenever lawmakers push legislation through. DraftKings has their name down in a deal with the Pequots, Kambi has a partnership with the Mohegans, and the Connecticut Lottery could potentially land a third party partnership deal with another sportsbook brand.
The state would deliver a tax of 13.75 percent of online sportsbooks’ gross gaming revenues. This is a rate that is higher than the 10 percent of the national median average.
Online casinos would have a tax rate of 18 percent of revenues within the first five years of the launch. Then, it moves slightly higher at 20 percent for the next five years after that.
The lottery will also have the option to open as many as 15 retail sportsbooks, and some of those can land in either Hartford or Bridgeport. If it wanted, they could sublicense a handful of these to Sportech Ventures, which operates the state’s off-track betting facilities.
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Both tribes have agreed to stop the progression for a new joint casino in East Windsor for around 10 years. This deal includes a five year extension option.
Moving forward, this deal has the potential to generate tens of millions of dollars to the state. Connecticut could be successful while being the third New England state with legal sports betting, after Rhode Island and New Hampshire, but it would be the first with multiple legal operators at play.
Connecticut has a lot on the table with being able to legalize sports betting ahead of New York. Connecticut would also be an attractive option with their iCasino gaming, while being the third one to have it in the Northeast after New Jersey and Pennsylvania.
Moving Onto the Next Steps
As the steps continue to be outlined, various deals with the state’s largest gaming stakeholders should make a nice path towards a fairly easy legalization effort. For such a delayed effort all of this time, it is nice to see a positive step forward.
Since it carries both of the state’s largest tourism and economic factors, the tribes would have a large amount of political backing. This deal in part with a Democrat governor should spark the legislative framework to go hand in hand with the Democrat controlled legislature.
This deal also takes care of any concerns previously held up in the proposed effort of the East Windsor casino, since it had divided lawmakers and altered legislative support. Now with a 10 year horizon, there is little to worry about legalization for the time being.
Piecing it Together
Gaming is a rather small aspect of the state’s legislative plans for this year. This means it could take several weeks before the bill even has a chance to pass through to the General Assembly.
After it runs through there, then you have to factor in regulation and licensing the sportsbooks which could then take several more months. Having an online sportsbook by summer of 2021 is a very best case scenario.
There is still hope to have the best of both worlds. The progress is already in the works and Connecticut could have sports betting by the end of 2021.