Connecticut Makes New Steps towards Legalizing Sports Wagering

Connecticut is again considering the idea of legalizing sports betting in the state, as lawmakers are currently to run the rule over several new bills. House Bill 5168, sponsored by Representative Joseph Gresko, aims to permit both tribes and other operators to apply for certificates which would enable them to offer these services in the state.

Should the Bill into law, the body in charge of processing license applications would be the state’s Commissioner of Consumer Protection. The legislation depends on whether Governor Ned Lamont will reach agreements with the Mashantucket Pequot and Mohegan tribes.

The introduction of this HB…

…comes as two other sports betting bills were also put forward in Connecticut’s Senate. Senate Bill 00021 and 00212 both set out plans to approve this form of wagering, as well as online gaming, internet lottery, online keno, entertainment facilities and a new gambling location in Bridgeport.

Should either of the proposals progress into law, they would come into effect from July 1, 2020. Both House Bills are now with the t Committee on Public Safety and Security.

Details of the Proposal

As far as suggested, operators would gain permission to offer both online and mobile sports wagering without having a physical presence in the state. However, land-based activities would still be limited to venues located on tribal territories.

With a validation period of 5 years…

…license would cost an initial $100,000 in a non-refundable application fee, in addition to a further $750,000 should the certificate be issued or if it is renewed.

Moreover, the state would also have to make sports wagering vendor licenses so that operators could cooperate with a third-party to offer betting in the state. Applicants would again pay the initial $100,000, as well as $300,000 when the approval is issued and every five years to renew it.

Among other requirements, licensees would be required to tie the knots with a recognized sports data provider and reporting suspicious betting activity to the state’s Department of Consumer Protection.

Gross revenue from the activity would be taxed at a rate of 10% on land-based wagering, and 14.75% on revenue from betting on online or mobile platforms.

Only consumers located inside the state would be able to place wagers, with only those at 21 years of age allowed to bet. Moreover, punters should have the opportunity to exclude themselves from betting or set deposit limits.

Agreements with Tribes

The destiny of the Bill depends on the Governor’s agreement with an agreement with the Mashantucket Pequot and Mohegan tribes. At the time being, these tribes, which have recently reported a drop in revenue for 2019, hold exclusive right to offer gambling in the state. Should any modifications happen, they would need to adhere to the Indian Gaming Regulatory Act.

In case a deal is reached…

…the proposals would allow each federally recognized tribe that runs Class III gaming on its Indian lands in the Nutmeg State to operate one online skin for sports wagering online or via a mobile application, as well as one skin for online casino.

The bills also seek to permit a tribally-owned company to run a new casino gaming hub in the city of Bridgeport, provided that the business in question commits to spending at least $100m on the project.

Source:

“Connecticut to consider new sports wagering bills”, Rob Fletcher, igbnorthamerica.com, February 20, 2020.