Connecticut’s governor has confirmed a new gambling expansion deal with the Mohegan Tribe in the state of Connecticut.
Connecticut Governor Ned Lamont has inked a gambling expansion agreement with the Mohegan Tribe which will help facilitate the launch of sports betting and online gambling in the state.
Under the agreement, which has been signed by the Mohegan Tribe chairman James Gessner Jr and Lamont, sets a tax rate of 20% for online gambling while sports betting would be taxed at a rate of 13.75%.
The deal also makes concessions to the Connecticut Lottery, which will have the right to operate 15 retail betting facilities as well as one online sport wagering skin. The 15 betting facilities will include new venues in Bridgeport and Hartford.
Some of the locations operated by the Lottery will also have the right to sub-license some of the locations to Sportech, the state’s pari-mutuel wagering operator.
This licensing agreement will run for an initial period of 10 years and could be extended for five years. According to the announcement, “tens of millions” of dollars could be generated for the state.
Before the deal can come into effect, it must be approved by the Secretary of the US Department of the Interior.
Speaking on the agreement, Lamont said: “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.
“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.”
Gessner said: “The Mohegan Tribe is proud to have reached this agreement with Governor Lamont and the State of Connecticut.
“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. We’re thankful to Governor Lamont and his team, and we look forward to continued work with the General Assembly as this process continues.”
Gambling expansion efforts in Connecticut
This comes after Lamont threw his support behind the legalisation of online sports betting and online casino gambling earlier this year during his State of the State address.
Lamont went on to include revenue from these gambling verticals in Connecticut’s 2022-23 state budget. The governor expects the expansion of gambling to generate $47.3m by the end of the 2023 financial year.
The tribal operator, Mohegan, currently offers sports betting and online casino gambling in the state of New Jersey where it operates the Resorts Casino Hotel. Mohegan also offers sports betting in Pennsylvania online via Kindred Group’s Unibet-branded sportsbook.