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Connecticut Governor & the Mohegan and Mashantucket Pequot Tribes Agree on a New Gaming Compact
By Jeff Osienya Mar 22, 2021 LegalityGov. Ned Lamont and the two tribal nations in his state operating Mohegan Sun and Foxwoods Casino resort have penned a new gaming expansion arrangement. From the look of things, legal sports betting and iGaming could be live in Connecticut by end of year.Connecticut and the two federally recognized tribes in the state; Mohegan and Mashantucket Pequot tribal nations have finally reached an agreement that will dictate the introduction of legal sports betting and online gaming in the state moving forward. The new tribal-state compact announced on Thursday is a 10-year arrangement that is aimed at further opening up the gaming market in the Nutmeg State for a much-needed revenue boost for state coffers and the creation of employment.
It’s worth pointing out that earlier in the month, the Mohegan Native American tribe had already completed its negotiations with Governor Ned Lamont but the arrangement wasn’t well-received by the Mashantucket Pequot counterparts and a section of lawmakers alike. As a result, the trio – the state and the two tribes, had to go back to the drawing board to iron out a handful of details that would adequately appease the Mashantucket Pequot tribal nation in particular.
With the new gaming expansion compact in place Governor Lamont voiced his satisfaction with the successful negotiations in a statement saying;
Quote“Connecticut is on cusp of providing a modern, technologically advanced gaming experience for our residents, which will be competitive with our neighboring states. Our state’s tribal partners have worked with my administration thoughtfully, deliberately, and in a constructive fashion for the past few months, and we have achieved an agreement that is best for Connecticut residents and their respective tribal members. We will work to see it ratified and look forward to doing so through a collaborative effort, to include working with elected leaders in the general assembly.”
Now that the tribes and the governor are in agreement, the amended tribal-state gaming compact will have to pass through the standard approval procedure before it is official state law. The next phase of approval will involve the Connecticut General Assembly and after state legislators okay it, the compact will move on to the U.S. Department of Interior for final authorization to pave way for the launch of iGaming and sports betting in the state.
What Changes Have Been Introduced in Connecticut’s Gaming Compact?
The amended tribal-state compact will allow Nutmeggers to enjoy retail and mobile sports betting and online casino gambling services from Mohegan’s Mohegan Sun Casino and Mashantucket Pequot’s Foxwoods Resort Casino. Thankfully, state residents will not be limited to gambling inside the physical tribal gaming facilities alone, the new tribal-gaming compact allows betting on online sports and playing online casino games such as poker and online lotto anywhere within the stateliness.
Most of the stipulations for the expanded gaming market remain the same as they were when Gov. Lamont first announced his agreement with the Mohegan Tribal Nation. The biggest change that was driven by the Mashantucket Pequot tribe was the slight reduction in taxation for online casino gaming. The new deal puts the tax rate of online casino gaming at 18% for the first five years then bumped up to 20% thereafter, instead of 20% right out of the gate. Taxation for online sports betting will however stay at the original 13.75% as had been negotiated by the Mohegan tribe.
Moreover, given the introduction of new forms of gaming that will bring in more revenue for the state, all other forms of gaming in the state will see a slim drop in the tax revenue collected compared to what had been agreed upon in the last tribal-state compact back in the early ’90s. The tribes have been paying 25% of slot machine revenue from their casino facilities to the state in exchange for gaming exclusivity rights, but the details of the new taxation plan for previously allowed forms of gaming haven’t been disclosed. The other key element of the renewed tribal-state compact is that both tribes have agreed to shelve plans of their collaboration East Windsor Casino project for the next decade.
Connecticut Tribal Leaders Chime in On the Landmark Agreement
This new gaming compact is a milestone for the Nutmeg State as it is the first overhaul of gaming laws in three decades. According to the governor, the latest tribal-state compact will help the state collect millions of dollars in tax revenue especially since Nutmeggers are avid sports fans.
James Gessner Jr, the Mohegan Tribal Council chairman was glad that the Mashantucket Pequot Tribal Nation was finally on board, expressing his contentment in the following statement;
Quote“The Mohegan Tribe is very thankful to our partners in government, both the Mashantucket Pequot Tribal Nation and the state of Connecticut, for reaching collective agreement on a path forward for modernizing our state’s gaming entertainment industry. 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. We look forward to continued work with the general assembly on this topic, especially the many dedicated legislators who have partnered with and supported Connecticut’s tribes throughout this process.”
Rodney Butler, the Mashantucket Pequot Tribal chairman also voiced his approval of the new gaming compact now that the tribe’s grievances had been heard. He said;
Quote“We’re proud of this landmark agreement with the state of Connecticut that cements a historic moment for our Tribal Nation. This agreement bolsters the state’s economic development and growth, and allows us to develop a stable economic foundation for the future of our tribal community.”
The General Assembly of the Nutmeg State will be adjourning at the end of the federal budget year in June. Should the newly negotiated compacts get greenlighted by then, Nutmeggers will likely be enjoying online sports betting and iGaming legally by the end of 2021.
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