Foxwoods joining pact makes sports betting near certainty in CT
Paul Schott
A gambler uses a video gaming machine at Foxwoods Resort Casino in Connecticut.
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Foxwoods Resort Casino in Ledyard, Conn.
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Jason Guyot Foxwoods Resort Casino's new president and chief executive officer. He had served as interim CEO since April 2020.
Contributed photo / Foxwoods Resort CasinoShow MoreShow Less
Gov. Ned Lamont's administration announced Thursday a comprehensive deal with the operators of Foxwoods Resort Casino and Mohegan Sun resort for sports betting and online gambling, a pact that was widely anticipated after the state reached a Mohegan-only agreement earlier this month.
With the new deal, Connecticut aims to generate tens of millions of dollars in new revenues, while keeping the state competitive with gaming being offered or considered in neighboring states. Among its key provisions are an 18 percent tax rate for the first five years on new online commercial casino gaming, followed by a 20 percent rate for at least the next five years. There would be a 13.75 percent tax rate on sports wagering.
In addition, the Connecticut Lottery will have the right to operate 15 retail sports-betting locations, as well as an online sports-betting "skin." The lottery will also have the right to sublicense locations to the state-licensed parimutuel operator and be able to open retail sports-betting venues in Hartford and Bridgeport. At the same time, iLottery and Keno would be expanded through the Connecticut Lottery, a provision that would include the sale of draw tickets online.
"We're proud of this landmark agreement with the state of Connecticut that cements a historic moment for our Tribal Nation," Mashantucket Pequot Tribal Chairman Rodney Butler said in a statement. "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. We thank Gov. Lamont, members of the southeastern delegation, the Black and Puerto Rican Caucus, and the many members of the General Assembly who have supported us continually throughout this journey. We are grateful for their friendship and look forward to working together as this proposal moves forward."
If approved, people physically located in Connecticut would be able to bet on sports events online and at locations across the state, and wager on other casino games online or on mobile apps. The roster of games would depend on the companies offering bets.
DraftKings, one of the largest sports betting providers, has an agreement with Foxwoods and would most likely join with local gaming companies to offer different options. The agreement would also likely raise funds for the prevention and treatment of gambling addition.
"Connecticut is on cusp of providing a modern, technologically advanced gaming experience for our residents, which will be competitive with our neighboring states," Lamont said in a statement. "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."
To be enacted, the plan will also require the state legislature to approve supporting legislation. State Sen. Cathy Osten, D-Sprague, whose district include the Foxwoods and Mohegan establishments, is among the legislators optimistic about the prompt passage of such a bill.
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"It should happen, I'm hoping, within the next week or two," Osten said in an interview Thursday. "This is something that could happen very quickly."
Federal regulators might also have to approve the framework.
Significant support — but also concerns — about new deal
The new deal encompasses a license agreement for 10 years with a five-year extension option. In addition, both tribes have agreed to halt development of an East Windsor casino through the duration of the agreement.
Pressure for the state to reach a deal with the Mashantucket Pequots grew significantly after the announcement about two weeks ago of the unilateral deal with the Mohegans. Mashantucket Pequot leaders had criticized the Mohegan-only deal. They had said that such an agreement could not exist without the participation of both tribes because it would affect 1990s compacts between the state and the tribes — which are under federal control.
"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," Mohegan Tribal Council Chairman James Gessner Jr. said in a statement. "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."
Launching sports betting and online gaming in Connecticut has long hinged on the tribes' involvement in those operations and the role of other gaming operators in the state such as the Connecticut Lottery; Sportech, the operator of the state's off-track betting outlets; and outside commercial-gaming companies such as MGM.
In a statement Thursday, Sportech officials reiterated the concerns that they have expressed since the announcement of the unilateral Mohegan deal. As the state's sole pari-mutuel operator, the company operates 11 locations around the state, with licenses for a total of 24. The firm's regional headquarters are in New Haven.
"Sportech supports expanded gaming in the state; however, federal and state law mandates a level playing field," the statement said. "Today's announcement does not appear to offer that level playing field; Connecticut consumers will be deprived of a healthy competitive betting marketplace and the Connecticut jobs that Sportech supports will be at risk. We continue our dialogue with the administration in pursuing gaming expansion that does not contravene laws and discriminate against not only our employees, but all Connecticut consumers."
The tribes have long claimed exclusive ownership of sports betting and online gaming in the state under their separate compacts, which give their casinos sole rights to "casino games" in exchange for 25 percent of slot machine revenues. Those payments have totaled more than $8 billion since Foxwoods opened in Ledyard in 1992, followed by Mohegan Sun's launch in Uncasville in 1996.
Foxwoods and Mohegan Sun comprise two of the largest, minority-owned businesses in Connecticut, cumulatively employing thousands of state residents.
"These two businesses are two of the largest businesses in the state of Connecticut — they're in the top 10 in the number of employees they hire," Osten said. "They are an anchor and economic driver in the state. And it keeps us on par with other states (in sports betting and online gaming)."
Among other developments this week, both Foxwoods and Mohegan announced chief executive changes. Foxwoods has named Jason Guyot as its permanent CEO and president. He had served as its interim chief executive since last April. Mario Kontomerkos, CEO and president of Mohegan Gaming & Entertainment, will step down at the end of the month. He has held the position since October 2017.
Includes previous reporting by Ken Dixon and Dan Haar.
pschott@stamfordadvocate.com; twitter: @paulschott
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Paul Schott is a business reporter at Hearst Connecticut Media, writing about the issues affecting small- and medium-sized businesses and large corporations based in southwestern Connecticut, with a focus on Stamford and Greenwich. He previously covered education for Greenwich Time and general assignments for the Westport News. Paul welcomes readers' ideas and suggestions and strives to cultivate a robust dialogue with Hearst Connecticut Media's audience.