Connecticut Moves Closer to Online Gambling Services as Tribal Compact Amended

Earlier this week, Connecticut Governor Ned Lamont announced that the Class III gaming compact of the Mohegan Tribe was amended to include online gambling along with retail mobile and sports betting. Revenue sharing details have been provided and it won’t be long before the state is the latest to start offering iGaming options in the US.

Details of the Agreement

With the new compact, the tribe will pay a 20% tax on online gross gaming revenues. Sports betting revenues will provide 13.75% to the state. The changes to the compact are good for 10 years and include the possibility to extend the agreement for another five years.

Governor Lamont commented on the new compact, stating that it represents months of hard work and dedication to create the best deal for the state. It now moves Connecticut forward when it comes to the future of gaming.

The governor stated further that the state is fortunate to have a devoted partner like the Mohegan Tribe. The tribe was open to negotiating the compact and provided honest discussion on the matter. The Mohegan Sun is one of two tribal casino operators in the state.

Mashantucket Pequot Tribal Nation Deal

The second tribal operator in the state is the Mashantucket Pequot Tribal Nation. The group operates the Foxwoods Casino. For many years, the gaming compacts of both tribes have been the same. However, this time, the state is working to create separate deals as the gaming industry expands.

Rodney Butler is the Chair of Mashantucket who recently commented on the process by stating that the tribe is on the one-inch line of signing a revised deal. The Foxwoods facility will also be allowed to provide online gaming and sports betting services. Butler says the tribe will be there soon when it comes to completing the compact negotiations.

Each of the tribes have seen a drop in slot win over the past few years, and this has caused a decrease in the share of money provided to the state. The losses are due to the continued competition from neighboring states. In the past, gamblers had to travel to Connecticut to the tribal casinos to find games nearby. Now, they have access to casinos in Rhode Island, Massachusetts, and New York State.

With online gambling, the tribes would actually have a leg up on most neighbors as bordering states do not offer online gambling. Only Rhode Island provides mobile sports betting.

With the changes, the tribes will now no longer have a monopoly in the Connecticut gambling industry. The lottery will now be allowed to offer up to 15 retail sports betting locations. The lottery will also be allowed to provide one online sportsbook in the state.

Foxwoods already has its partner when it comes to sports betting and iGaming, having signed a deal with DraftKings. For the Mohegan Sun, they will need to find a third-party operator. It is expected the tribe will announce its online interactive gaming partner soon.

It will be interesting to see how the tribes offer service and how well they will be received by players.

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Conor Stack
Conor is one of our main writers on USGS focusing on a wide range of industry coverage across sports, casino and poker.