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Connecticut’s Sportsbooks Showdown Edges Closer
By Jeff Osienya Jul 11, 2021 IndustryThe Nutmeg State’s recently okayed gaming expansion laws have come into effect, officially opening the retail and online sports betting market plus iGaming. However, locals have to hold on until September as operators finalize preparations.After months of legislative lobbying and tribal-state negotiations, Connecticut’s regulated online sports betting and iGaming legislation, HB 6451, came into effect on July 1st. Governor Ned Lamont of the Nutmeg State signed the gaming expansion bill into law on May 27th, just two days after the state senate had given the measure the green light.
HB 6451 allowed the Connecticut Lottery Corporation and the state’s two federally recognized tribes – the Mashantucket Pequot Tribal Nation and Mohegan Tribe, to run retail and online sports betting operations. Further, the new regulation also authorizes the two tribal nations and the Ct lottery to offer daily fantasy sports (DFS) services and online casino gaming.
But then, even though the doors for regulated online sports betting and iGaming have been open since July 1st, sports bettors in the state have to be patient for a little longer before they can enjoy the expanded gaming market. The two tribes and the state lottery are still dotting the i’s and crossing the t’s before they can finally serve the eagerly waiting market.
FanDuel and Mohegan Gaming & Ent Join Forces
Mohegan Gaming & Entertainment (MGE) and FanDuel Group confirmed last week, on Wednesday, July 7th, that they have penned an agreement to bring retail and online sports betting to Connecticut. Through Mohegan’s license, sports fans in the Nutmeg State are poised to relish the FanDuel Sportsbook, one of the most prominent operators in the USA’s sports betting scene. In addition, FanDuel will also be powering Mohegan’s online casino gaming and daily fantasy sports operations through the new deal.
Following the arrangement, the President of FanDuel Group, Amy Howe, said:
Quote“Mohegan Sun is an iconic casino and entertainment destination in the Northeast, and we are excited to announce our first tribal gaming partnership with one of the leading tribal operators in the United States. We have some incredible plans for the retail space at Mohegan Sun, with the potential to be the largest FanDuel Sportsbook in the United States. When we combine the retail sports betting experience with the opportunity for online sports betting and iGaming, Connecticut is going to be a key state for us as we look towards the start of football season.”
The duo will now open a temporary retail Mohegan Sun-FanDuel Sportsbook facility inside the Mohegan Sun Casino in Uncasville. This temporary retail sportsbook scheduled to launch operations in September, will feature 16 self-service betting terminals and four live betting windows. Meanwhile, the two companies will secure regulatory approvals to finalize their plans of opening a permanent sportsbook elsewhere in Connecticut this winter.
Ray Pineault, the President, and CEO of Mohegan Gaming & Entertainment, also chimed in to say:
Quote“We’re excited to work with FanDuel, one of the leading sports-tech entertainment companies in the US, to bring the brand’s innovative sports betting and iGaming solutions to Mohegan Sun Connecticut. Our partnership is a priority for Mohegan Digital, as we look to grow and enhance our casino, sportsbook, and online operations in Connecticut – and beyond. We’re confident that FanDuel will deliver a best-in-class digital and in-person experience for our loyal guests.”
MGE’s deal with FanDuel Group comes a week after Kambi disclosed that it wouldn’t be powering Mohegan’s sportsbook per the agreement they had inked in 2019. Kambi will, however, still receive its projected 5-year revenue from the partnership they had discussed.
Meanwhile, DraftKings, FanDuel’s most formidable rival in the USA’s sports betting world, will enter the state via a Mashantucket Pequot license. This DraftKings powered sportsbook will launch at the tribe’s Foxwoods Resorts Casino. Connecticut’s state lottery, the only other entity with authority to run retail and online sportsbook operations in the state, hasn’t yet disclosed a partner to launch the services.
Connecticut’s New Law Finally Fixes DFS Loophole
Before Connecticut’s expanded gaming law came into effect on July 1st, daily fantasy sports had been active in the state under a gray area as a game of skill. However, with HB 6451, lawmakers introduced a clause that required daily fantasy sports operators to acquire a gaming license from the Department of Consumer Protection (DCP) similar to other forms of gaming.
To stay on the safe side of the new law, DraftKings and FanDuel moved swiftly before they were taken offline by piggyback on daily fantasy sports licenses issued to the state’s two tribes. The DCP announced that the Mashantucket Pequot Tribal Nation and the Mohegan Tribe subcontracted their daily fantasy sports licenses to the two daily fantasy sports juggernauts. These licenses are to last until September 30th or until the tribes procure a final license. The Connecticut lottery also received its provisional license but hasn’t contracted it to any DFS operator to date.
Further, the DFS operators were also required to pay back fees to compensate for previously operating in the Nutmeg State. According to the DCP, DraftKings paid the state $832,383.45, whereas FanDuel had to part with $325,914.91 as back fees.
Like online sportsbooks, the new regulation only allows a maximum of three DFS platforms to operate in the state by entering into a ‘Contract with one of the tribal casinos or the Connecticut Lottery Corporation.’ Therefore, all other DFS operators that used to serve the Connecticut market, including Underdog Fantasy, Bally’s Money Knife Fight, Yahoo Fantasy Sports, and PrizePicks, have automatically been shut out. As a result, there’s only room for one more DFS operator – expected to strike a deal with the Connecticut Lottery.
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