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Mohegan Tribe and Gov. Lamont Agree on Gaming Expansion in Connecticut
By Jeff Osienya Mar 04, 2021 IndustryConnecticut’s Mohegan Tribe and state Governor Ned Lamont have reached an agreement that will permit sports betting and online gaming. The Mashantucket Pequot Tribe, the other tribe in the state is yet to conclude negotiations.The state of Connecticut through Gov. Ned Lamont and the Mohegan Tribe, the owners and operators of Uncasville’s Mohegan Sun casino, have penned a landmark agreement to let non-tribal gambling operators offer gambling services for the first time in the history of legal gaming in the state.
According to the official announcement made on Tuesday by the governor’s office, the new agreement paves way for gaming expansion in the state, effectively allowing for the introduction of new gaming options in Connecticut, including online gambling and sports betting.
After the state disclosed the new developments, Governor Ned Lamont came forward to underscore the importance of the gaming expansion agreement in generating more tax revenue for state coffers. He said that the agreement will assist the state in collecting tens of millions of dollars in revenue, funds that are much needed to boost the economy.
Gov. Lamont also thanked the Mohegan Tribe for their corporation through the lengthy discussions to unlock the state’s gaming future in the following statement;
Quote“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.”
Highlights of the New Connecticut Gaming Expansion Agreement
From the gaming expansion announcements, the government of Connecticut also broke down some of the key elements of the agreement it had with the Mohegan Tribe. For starters, the revenue from sports betting activity in the state would have a taxation rate of 13.75% whereas taxation for iGaming is 20%.
The Connecticut lottery has been permitted to operate up to 15 retail sports betting locations, and one online skin will also be allowed to offer internet sports betting to locals in the state. On top of that new sports betting, venues run by the state lottery will be launched in Hartford and Bridgeport.
Another very specific part of the agreement is the fact that the state lottery has been given the mandate to sub-license some of the retail sports betting operations to Sportech. However, a clause in the arrangement exclusively prevents Sportech on its own from launching its own operations or an online skin to take sports bets from Connecticut residents.
Mohegan Tribe Chairman James Gessner Jr. expressed his satisfaction with the agreement in a press briefing saying;
Quote“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.”
It appears that the Mohegan Tribe had been preparing for this particular moment for nearly two years as it signed Kambi as its sports betting operations partner back in March 2019. The Lamont-Mohegan agreement now awaits approval by the General Assembly.
Mashantucket Pequot Tribal Nation Left Out of the Equation
But then, as momentous as the announcement was for the Nutmeg State, The Mashantucket Tribal Nation, the operator of Foxwoods, the oldest casino in the state isn’t too thrilled about the announcement. The Mashantucket Tribe felt rather sidelined as it expected the announcement to be made after they too had completed discussions in the state – it is the only other federally recognized tribe in Connecticut.
According to the Mashantucket Tribe, the overall gaming expansion arrangement was a three-sided negotiation with two tribes; Mohegan and Mashantucket, and the state. Thus, a legally recognized deal couldn’t possibly exist without both tribes as it wouldn’t be in line with federal tribe-state compacts that were inked in the ’90s to grant the tribes gaming exclusivity in exclusivity rights for a 25% tax revenue of slot machines.
Rodney Butlery, the Chair of the Mashantucket Pequot Tribal Nation voiced his displeasure in the move in a strongly-worded statement saying;
Quote"After months of closed-door negotiations, it's offensive that Governor Lamont would announce an agreement with only one of the two Tribal Nations that have been a party to the negotiations, despite full knowledge that both sovereign Nations are needed to implement any agreement. We have participated in these discussions in good faith and consider today’s events extremely disrespectful in terms of process and substance."
However, while the Mashantucket Pequot Tribe was clearly offended by the governor’s move, the tribe is still willing to play ball as its negotiations with the state continue. Butlery, the tribe’s chairman indicated so in part of his statement as follows;
Quote“Now that the Governor Lamont has laid bare the confidential terms of our negotiations, you can see the significant and substantial concessions made by both Tribes. Just permitting Lottery to participate in full sports betting, absent tax or revenue share, is a major allowance. We have one remaining point of contention that is easily resolved if some sense of mutual respect is afforded for the specific needs of our tribal community. We remain open to discussions and hope this is resolved quickly for the benefit of the entire state of Connecticut.”
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