Concurrent with and deeply intertwined with the Connecticut legislature’s discussions of a third casino tribal casino is the issue of sports betting, and the Mohegan and Pequot tribes’ strongly asserted contention that its existing compacts give it exclusive rights to offer the wagers.
Those who want a piece of the action, including racetracks, note that sports betting was never mentioned in the compacts because it was banned by the federal government.
There are two sports betting bills, S 17 and S 665, for which the Joint Public Safety and Security Committee held 11 hours of hearings last week. The bills are largely shell bills, without any details.
Testifying before the committee was Pequot Chairman Rodney Butler, whose tribe operates Foxwoods and Pay Pineault, president and general manager of the Mohegan Sun.
Pineault projected that the tribes could put $8 million in sports book taxes into the state’s coffer the first year of operation and as much as $20 million once the industry matures.
Butler explained that his tribe believes that sports betting is a casino game, and therefore falls under the existing compacts. He added that since both tribal casinos slots revenues have trended down in recent years that they need the additional revenue.
Committee co-chairman Rep. Joe Verrengia said he doesn’t consider sports book to be a casino game since it resides almost exclusively on mobile platforms in most states. He argues that tribes shouldn’t have exclusive rights to offer it. “I believe that there are other stakeholders that should be part of this. To what degree and how that all shapes out, I’m not sure.”
Butler responded that he was willing to have that conversation. “It’s been a great partnership and, in our culture, we treat those with respect who treat us with respect. It’s been a respectful relationship up to this point, and hopefully moving forward, so we were absolutely open to that conversation.”
What position was taken by lawmakers largely determined on what part of the state they represent. If they represent district near existing Indian casinos, they tended to take the tribal position. If not, they leaned toward widening the availability of sports betting.
Also happening concurrently with these discussions are talks with the recently inaugurated Governor Ned Lamont and the tribes.
The issue of the “integrity fee” that sports leagues have so far unsuccessfully sought from state legislatures debating has resurfaced. The Connecticut legislature could be the first to grant that fee.
At the same Joint Public Safety and Security Committee hearings Rep. Joe Verrengia, the committee’s chairman proposed a 0.25 percent handle integrity fee of which a share would go to the Connecticut Department of Economic Development which would be used to pro exhibition games to the state, and support youth sports.
“I think there’s a distinct difference here in looking to partner with professional sports teams, and in return they would get up to a certain amount of revenue with the understanding that they would create more of a presence here in the state,” said the chairman.
He came up with the idea after sounding out NBA senior vice president Dan Spillane on his receptiveness for such a partnership.
His bill would also authorize the state’s tribal casinos and any commercial casinos, off-track betting to offer sportsbook. It would be offered on mobile platforms and online with remote registration. Professional and college sports bets would be allowed. Prop bets and in-game wagers would also be allowed.
