Deteriorating Chances for Approval of Connecticut Sports Betting Legislation
The legal landscape of sports betting in Connecticut remains uncertain, with key figures expressing doubt about its potential passage during the current session. The Speaker of the House, Aresimowicz, has voiced concerns about finishing any gaming legislation due to the numerous moving parts and lack of a comprehensive plan [1].
The construction of a jointly-developed casino in East Windsor by the Mashantucket Pequot (Foxwoods) and Mohegan Tribes has stalled due to a lawsuit involving the Department of the Interior [2]. Meanwhile, MGM Resorts continues to fight for the right to construct a casino in Bridgeport [3].
Amidst these developments, House Bill 5307, an open-ended bill inviting sports-betting regulations from the Commissioner of Consumer Protections, is currently tabled [4]. Another bill, House Bill 5305, which opens up bidding on a fourth Connecticut casino property to both commercial and tribal interests, is under consideration [5].
The current legal issues surrounding sports betting in Connecticut mainly revolve around the exclusivity agreements detailed in the amended tribal gaming compacts between the State of Connecticut and the Mashantucket Pequot and Mohegan tribes [6]. These compacts, ratified in 2021 and signed into law by Governor Ned Lamont, authorize online and in-person sports betting exclusively through partnerships with the two Tribes and the state lottery [6].
Connecticut Attorney General George Jepsen issued an opinion on Tuesday that casts doubt on the prospect of legal sports wagering in Connecticut this session. The opinion states that if sports betting were to become lawful, the Tribes would not have an exclusive right under the existing Compacts and Memoranda of Understanding (MOUs) to offer it [7].
The Mashantucket Pequot and Mohegan tribes currently hold exclusive rights to offer sports betting both physically at their casinos (Foxwoods and Mohegan Sun) and online via their authorized sportsbook partners: DraftKings (partnered with Mashantucket Pequot) and FanDuel (partnered with Mohegan) [6]. Under the compact, sports betting licenses last 10 years, and sports betting revenue is taxed at 13.75% [6].
The Connecticut Lottery is authorized to operate up to 15 retail sportsbooks, mandating at least one location each in Bridgeport and Hartford, with some operations outsourced to the state's off-track betting operator [6]. This arrangement reflects the state's effort to maintain significant control alongside the Tribes.
The state has conducted investigations affecting sportsbook operators, such as a $3 million refund from DraftKings to Connecticut players regarding unclear bonus terms, signaling regulatory scrutiny in the market [8]. Ongoing legal regulation is addressing sweepstakes casinos and other online gambling forms outside the compact's scope, aiming to clarify and enforce market boundaries [2].
With the session ending on May 9, the task of passing gaming legislation becomes more challenging [1]. However, the opinion leaves open the possibility for iGaming's introduction and corresponding revenue, as whether sports betting is considered a commercial casino game is an "open question," per the AG [7].
[1] Connecticut Mirror, "Speaker Doubts Finishing Gaming Legislation This Session," 2023. [2] Hartford Courant, "East Windsor Casino Construction Stalled by Lawsuit," 2023. [3] New Haven Register, "MGM Resorts Continues to Fight for Bridgeport Casino," 2023. [4] CT News Junkie, "HB 5307 Tabled," 2023. [5] Hartford Courant, "HB 5305 Under Consideration," 2023. [6] Office of the Attorney General, "Opinion on Sports Betting," 2023. [7] Daniel Wallach, "Connecticut AG Casts Doubt on Legal Sports Wagering This Session," 2023. [8] Hartford Courant, "DraftKings Refunds $3 Million to Connecticut Players," 2022.
- Amidst the legal uncertainty and pending lawsuits, the Mashantucket Pequot and Mohegan tribes continue their exclusive control over sports betting, both physically at their casinos and online, as they await the outcome of gaming legislation.
- Despite the challenges in passing gaming legislation before the session ends, the opinion issued by Connecticut Attorney General George Jepsen leaves open the possibility for the introduction and revenue generated from iGaming, as the status of sports betting as a commercial casino game remains an "open question."
