A Mitigated Risk
Online gambling is more over than under for state, municipalities, and tribes
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vershadowed by the recent marijuana legislation, the legalization of online gambling was certainly a controversial topic in its own right. But with the passage and arrival of online gambling, the State and the Tribal Nations are seeing more pros than cons. Like so many other areas of industry, gambling or gaming is no longer tethered to the craps table, but accessible to individuals through their computers and mobile devices. What was lacking, was a way to regulate this industry in a way that would benefit everyone. Governor Lamont, Mohegan Tribal Council Chairman James Gessner Jr., Mashantucket Pequot Tribal Chairman Rodney Butler and the legislative leaders worked on an agreement that would equitably share the benefits of this new industry, as well as allowing the Connecticut Lottery Corporation to partner in these efforts. The details of the plan per the Governor’s press release include: • An 18 percent tax rate for the first five years on new online commercial casino gaming (or “iGaming”) offerings, followed by a 20 percent tax rate for at least the next five years • A 13.75 percent tax rate on sports wagering • Connecticut Lottery shall have the right to operate 15 retail sports betting locations, as well as operate an online sports betting skin • Connecticut Lottery shall have the right to sublicense locations to the state-licensed parimutuel operator • Connecticut Lottery will undertake new retail sports betting venues in Hartford and Bridgeport • License agreement to be for ten years with a five-year extension option • Expansion of iLottery and Keno through the Connecticut Lottery Corporation, including the sale of draw tickets online
Mashantucket Pequot Tribal Chairman Rodney Butler
• Both tribes agree to halt development of an East Windsor casino through the duration of this agreement While one of the main fears is that this would lead to increased gambling addiction, both tribes as well the Connecticut Lottery have agreed to allocate $2 million towards gambling addiction services in Connecticut. According to the Mayo Clinic, gambling triggers the brain “much like drugs or alcohol can.” There is no proven treatment, but educational programs seem to be helpful. While there is risk in any behavior becoming addictive, there is hope that the pros will far, far outweigh the cons.
Chairman Butler said “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 provider healthcare to our members. The agreement not only ushers in a new modern era of gaming, but it solidifies our tribal/state partnership for years to come.” This is of course true for the rest of the state, as Chairman Gessner notes: “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.”
AUGUST 2021 | CONNECTICUT TOWN & CITY | 9
