State on verge of sports betting deal; tribes hint at hope for casino in East Windsor

Mar. 3—Sports betting and online gambling are one step closer to fruition with the announcement Tuesday of a deal with one of the state's two Native American tribes and indicators that the other is nearly ready to come on board.

At the same time, the tribes' joint venture MMCT, created when they were pursing the now-stalled East Windsor casino project, hinted it could be willing to resurrect the project when society rights itself post-pandemic.

Gov. Ned Lamont's administration reached an agreement with the Mohegan Tribe on sports betting and online gambling, including provisions that would allow the Connecticut Lottery Corp. to operate 15 retail sporting sites and take online sports bets.

SPORTS BETTING DEAL

STATE LOTTERY: Would be allowed to operate 15 retail sporting sites, take online sports bets, and open sports betting facilities in Hartford and Bridgeport.

TRIBES: Deal reached with Mohegan Tribe on Tuesday, head of the Mashantucket Pequot Tribe said a similar agreement is likely to be struck with the state soon.

EAST WINDSOR CASINO: The Tribal Winds Casino is still a possibility in the future, once it is deemed economically viable.

CT Lottery also would open new sports betting facilities in Hartford and Bridgeport.

Tuesday's announcement comes after years of failed negotiations between the state and tribes that have stymied legislative attempts to expand gambling in Connecticut.

Rodney Butler, chairman of the Mashantucket Pequot Tribe, said Tuesday during a public hearing before the legislature's Public Safety and Security Committee that his tribe is not far behind in reaching a deal with the administration.

"We are all in agreement now as far as the rights and who should be operating what," he said, telling committee members, "all of you will be incredibly pleased."

He said the last sticking point has been a "a rounding error" to the state, but has a more significant financial impact to his tribal budget.

The agreement with the Mohegans also includes a 20% tax on new online games and a 13.75% tax on sports bets.

"This agreement represents months of hard work and dedication to getting a deal that's best for the residents of Connecticut and moves our state forward when it comes to the future of gaming," Lamont said in a written statement. "We are incredibly fortunate to have such a devoted partner in these efforts like the Mohegan Tribe, as they have been open to negotiation, honest discussion, and a positive path forward that is beneficial for both their tribe and the state of Connecticut."

Mohegan Tribal Chairman James Gessner noted the agreement is expected to generate tens of millions of dollars in revenue, which Lamont is counting on to balance his two-year budget.

"This path will allow Connecticut to generate tax revenues from sports and online gaming that are competitive with other states, and help keep Connecticut with those states when it comes to growing our economy and benefiting the state budget," Gessner said.

The Public Safety and Security Committee is hearing testimony today on legislation that would legalize sports betting, online casino games and lottery games, and online keno.

While the joint tribal venture MMCT has halted progress at its Tribal Winds Casino in East Windsor, Butler said Tuesday that the project hasn't been completely scrapped.

"That is a good project. That is still a good project. It's just not viable at this point in time," he said.

Butler said there is still a market for brick and mortar casinos due to a social aspect not provided over the internet, but added that the COVID-19 pandemic has limited in-person gambling.

"I think when the time is right, we should absolutely continue to look at East Windsor and other opportunities around the state that make sense economically," he said.

Rep. Kurt Vail, R-Stafford, said there is wide support among lawmakers to pass an expanded gambling bill, efforts that have been thwarted in the absence of an agreement between the state and tribes, which had previously asserted they hold the exclusive rights to gambling in the state.

"I don't think that we've hit roadblocks because people are against gaming," Vail said. "We see the future. The roadblock is the people who are involved in it. They can't come to any kind of agreement, and then who loses out in the end are the citizens of the state of Connecticut."

He noted that Sportech, which operates off-track betting facilities in the state, is already in the gambling business and should also be included in the discussion.

"I don't think that they should just be dismissed," Vail said.

Following the announcement that the state reached an agreement with the Mohegan Tribe, Sportech issued a written statement saying that it would sue the state for excluding it in the deal.

"Regretfully, the governor's announcement this afternoon, that principally excludes Sportech from expanded gaming, leaves us with little option but to pursue legal recourse on behalf of our 400 Connecticut employees," the company said.

Lamont's Chief of Staff Paul Mounds said during the public hearing that the administration had been in communication with Sportech, but wouldn't comment further at that time because the official announcement with Mohegan had not yet been made.

Mounds did say, however, "We are well aware of the position of Sportech."

Committee members were largely supportive of the proposal to expand gambling, but critics argued that not enough is being done already to address gambling addiction.

Among those with concerns is Sen. Daniel A. Champagne, R-Vernon, who said that enabling people to place bets without leaving their homes could create more gambling addicts, "This is one of my major concerns.

"I fear that this is going to be a problem," he adding, stating that more funding should be directed to address problem gambling.

Other critics argued that determining which entities are entitled to gambling rights in the state should be determined by an open market, not a gubernatorial administration.

Department of Economic and Community Development Commissioner David Lehman said that while New Jersey's overall gambling revenue declined 20% in 2020, online gambling revenue doubled last year, with 92% of the state's total gaming revenue coming from online bets.

"The future of gaming is now," he said. "It's really time that Connecticut address that."

During session, Eric can be found at the Capitol in Hartford, reporting the information that readers want and need to know. For insights and updates on legislation, politicians, committees, and commissions that affect the entire state of Connecticut, follow Eric on Twitter: @BednerEric.