The state of Connecticut and the Mohegan and Mashantucket Pequot Tribe’s have reached an agreement regarding the modernisation of gaming in the Constitution State.
With plans slated to include the allowance of sports wagering and online gaming, the agreement is praised as posing the potential to generate tens of millions of dollars in new revenue for the region, while keeping it competitive with neighbouring jurisdictions.
“Connecticut is on cusp of providing a modern, technologically advanced gaming experience for our residents, which will be competitive with our neighbouring states,” explained Ned Lamont, Connecticut governor.
“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.”
Including a provision to include the Connecticut Lottery Corporation as a partner, key components of the collaboration will see an 18 per cent tax rate for the first five years on new igaming offerings, followed by a 20 per cent tax rate for at least the next five years. A 13.75 percent tax rate will be applied to sports wagering.
The Connecticut Lottery will gain the right to operate 15 retail sports betting locations, with venues in Hartford and Bridgeport to be undertaken, as well as operate an online sports betting skin.
“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,” James Gessner Jr, Mohegan Tribal Council chairman.
“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.”
The licence agreement will be for a ten year period with a five year extension options, and also sees both tribes agree to halt development of an East Windsor casino through its duration.
“We’re proud of this landmark agreement with the state of Connecticut that cements a historic moment for our Tribal Nation,” added Rodney Butler, Mashantucket Pequot Tribal chairman.
“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. “