The Connecticut Legislature’s Joint Public Safety and Security Committee, after a long hearing, last week moved along HB 7331 that would authorize mobile sports betting and allow it to be offered by casinos, OTBs and the lottery. The catch is that the Mohegan and Mashantucket Pequot tribes, which run the Foxwoods and Mohegan Sun casinos, must agree to negotiate new compacts allowing it.
This is something the tribes have so far said they won’t do because they maintain that sports betting is already reserved to them in the compacts that give them a monopoly on casino gaming.
The bill would take a new approach towards the “integrity fee” that professional sports leagues have sought by requiring the Commissioner of Economic and Community Development to “seek partnerships” with the leagues (MLB, NBA, NFL et al) “to promote sports activities and economic development in this state.” This reflects the desire on the part of some lawmakers to get something in return for the fees.
If adopted, Connecticut would be the first state to adopt a version of the integrity fee that the leagues have unsuccessfully sought with every other state that is mulling sports book legislation.
Under the bill, sports betting adjusted gross revenue would be taxed at 9.89 percent; that money would go to the general fund with 0.5 percent directed to the Regional Behavior Health Action Organization. Licenses would cost $100,000. State officials said sports betting could generate $100 million in revenue, with the state receiving $8 million-$20 million.
No state has included this fee or royalty in its sports betting legislation. However, the Connecticut law would give the leagues 0.25 percent of the state’s total sports betting handle in return for the leagues funding a joint venture with the state Department of Economic Development to bring more sports to the state.
The legislation reads, “The Commissioner of Economic and Community Development shall seek partnerships with professional sports leagues and governing bodies to promote sports activities and economic development in this state. The commissioner shall contact representatives of Major League Baseball, the Professional Golfers’ Association, the Ladies Professional Golf Association, the National Basketball Association, the National Hockey League, the National Football League, Major League Soccer, the National Women’s Soccer League and any other professional sports league or governing body the commissioner identifies.”
Besides authorizing mobile wagers anywhere in the state, the law would require bettors to register in person at a casino, OTB or lottery office. Some other states allow remote registration, although Rhode Island is the only New England state to offer sports betting at this time.
Under HB 7331 there would be a 9.89 percent tax rate and a $100,000 application fee for providers, with no limit set on the number of licenses. Money raised would go into the general fund, with .5 percent set aside for treating problem gambling.
Betting, which would be regulated under the Commissioner of Consumer Protection, would be allowed for both college and pro games.
Governor Ned Lamont has said that he supports legalized sports betting.
