DFS Operators Forced Out of Connecticut

All but two daily fantasy sports operators were forced to leave Connecticut when they couldn’t forge partnerships with a casino or the lottery. DraftKings and FanDuel are still around.

DFS Operators Forced Out of Connecticut

Some daily fantasy sports operators were forced to leave Connecticut because the new sports betting law, effective July 1, requires partnerships with a tribal casino or the Connecticut Lottery.

DraftKings and FanDuel avoided this fate by securing partnerships that gave them provisional licenses good until September 30. A maximum of three DFS providers will be allowed to operate.

It’s now legal to play DFS in the state for anyone over 18 and yes, they require age verification. Mashantucket Pequot Tribal Chairman Rodney Butler declared, “Currently, the fantasy sports market in Connecticut is north of 100 to 150,000 people already playing.” He added, “Right now there’s sort of a lull in the sports season. We’ll get the tail end of the baseball season. The Olympics I think people will probably look at that from a fantasy sports perspective.”

DraftKings partnered with the Mashantucket Pequot Tribe, the owner of Foxwoods Casino. FanDuel will be operating through a partnership with the Mohegan Tribe, operator of the Mohegan Sun. They will be operating DFS, sports betting and iGaming.

Governor Ned Lamont commented, “This short-term step allows for the continuation of fantasy sports in Connecticut as we continue to move forward to modernize our gaming landscape in Connecticut.

“Thanks to our partnership with the Mohegan Tribe, the Mashantucket Pequot Tribe, and the Connecticut Lottery Corp., our state will have a competitive and nation-leading model for wagering both in-person and online.”

DFS companies that were forced to vacate the state, at least temporarily, included Underdog Fantasy, based in New York State; PrizePicks, Monkey Knife Fight, now owned by Bally’s.

The Fantasy Sports & Gaming Association issued this statement: “We’re disappointed Connecticut fantasy sports players will not be able to continue to play in many of the contests they’ve grown to love and hope the state can find a solution to allow more operators to offer contests.” It continued, “It’s encouraging that some of our members companies will be able to offer contests without interruption in the meantime.”

DFS companies continuing to operate in Connecticut will be required to pay back taxes on their past operations. DraftKings was assessed $832,283 and FanDuel paid $325,914.91.

Meanwhile, the tribes and the Connecticut Lottery are preparing to open sportsbook operations by September, just in time for the NFL season.

FanDuel has partnered with Mohegan Gaming & Entertainment (MGE) to bring retail and online sports betting, iGaming and DFS to the Mohegan Sun. A temporary retail sportsbook will operate four live betting windows and 16 self-service kiosks.

Ray Pineault, president and chief executive officer of MGE issued this statement: “We’re excited to work with FanDuel, one of the leading sports-tech entertainment companies in the U.S. to bring the brand’s innovative sports betting and iGaming solutions to Mohegan Sun Connecticut.” He added, “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.”

Amy Howe, president of FanDuel Group, added, “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.”

MGE originally announced a sports betting partnership with Kambi earlier in the spring. An amended agreeing between the two no longer includes Kambi as branded sportsbook operator.

Kambi CEO Kristian Nylén said in a statement: “While we had been looking forward to supporting MGE become a sports betting leader in the Connecticut market, the amicable discussions between both parties have found a positive conclusion, with MGE respecting Kambi’s financial interests for the duration of the original agreement.”

Kambi and MGE had signed an agreement in 2019 to offer retail and online sports betting.