The Mohegan Tribe in Connecticut and Governor Ned Lamont have reached an agreement that would allow sports betting and online gaming. Announced on Monday this week, the new agreement is expected to raise millions of dollars boosting the state’s economy and budget.
Gov. Lamont Reaches Agreement with the Mohegan Tribe
The Mohegan Tribe and the state of Connecticut reached an agreement that would allow gaming expansion to sports betting and online wagering. The agreement between the owners of Mohegan Sun casino in Uncasville and Connecticut Governor Ned Lamont was announced on Monday.
According to the Governor, the agreement will result in “tens of millions of dollars” in revenue for the state. In a statement, he said that the agreement represents significant efforts and dedication over months. Furthermore, Lamont added that the agreement is what’s “best for the residents of Connecticut“, and it also moves the state forward in terms of the future of gaming.
Governor Lamont stressed that the state is incredibly fortunate to have such a devoted partner as the Mohegan Tribe. He did not miss saying that the Tribe has been open to negotiation and honest discussion. Last but not least, Lamont said that the path forward will be beneficial for both the Tribe and the State of Connecticut.
Gaming Tax to Boost the State’s Economy and Budget
James Gessner Jr., chairman of the Mohegan Tribe, also shared his excitement in a statement. Furthermore, he outlined that the Tribe is proud to have reached the agreement with Governor Lamont and Connecticut State. According to Gessner, this will result in tax revenue which will boost Connecticut’s economy and state budget. In conclusion, he expressed gratitude to the Governor and his team and said that the Tribe is looking forward to working with the General Assembly soon.
“We’re thankful to Governor Lamont and his team, and we look forward to continued work with the General Assembly as this process continues.”Mohegan Tribe chairman James Gessner Jr.
The agreement features a 20% tax rate on newly introduced online gambling activities. On the other hand, sports betting in Connecticut would be taxed at 13.75%. According to the Governor’s office, the agreement is effective for 10 years. Furthermore, an extension for 5 years is also possible. Under the agreement, up to 15 retail sports betting locations are going to be operated by the Connecticut Lottery. Furthermore, the Lottery is also going to open retail sports betting locations in Bridgeport and Hartford.
Mashantucket Pequot Tribe Is Yet to Agree to the Deal
For nearly three decades, the Mohegan Tribe and Mashantucket Pequot Tribe had exclusive rights over online gaming and sports betting. This was thanks to a compact that dates back to the 90s’ which granted the Tribes exclusive rights in exchange for 25% tax revenue on slot machines. Since then, the revenue which Connecticut received has reached $8 billion.
Although Mohegan Tribe has already agreed on the deal, this is not the case with the Mashantucket Pequot Tribe. According to Mashantucket Pequot’s chair, Rodney Butler, the negotiations are yet to move forward from the “one-inch line“. Furthermore, he stressed that currently, the Mashantucket Pequot Tribe has not agreed to the terms of the new deal. However, Butler added that he is certain that the Tribe “will get there” and this is likely to happen soon.