Governor Ned Lamont has come to an agreement with the Mohegan Tribal Chair James Gessner Jr over a gambling expansion deal which will allow legal sports betting and iGaming in Connecticut
Connecticut are now a step closer to legal sports betting and legal online gambling after an agreement was reached between Governor Ned Lamont and the Mohegan Tribal Chair James Gessner Jr.
“The Mohegan Tribe is proud to have reached this agreement with Governor Lamont and the State of Connecticut,” Gessner said in a written statement.
“This path will allow Connecticut to generate tax revenues from sports and online gaming that are competitive with other states, and help keep Connecticut with those states when it comes to growing our economy and benefiting the state budget. We’re thankful to Governor Lamont and his team, and we look forward to continued work with the General Assembly as this process continues.”
The Democratic Governor’s Chief of Staff, Paul Mounds, addressed the General Assembly’s Public Safety Committee on the same topic, and it now looks like there will be rapid movement on Connecticut opening up for legal sports betting, with a proposed tax rate of 13.75%.
Online gambling will also be included in the proposed gambling expansion deal and the tax rate for iGaming will be set at 20%.
These figures are slightly higher than those in Wedge Index topper New Jersey, which places an 8% tax on sports betting and 15% on iGaming. Michigan, who currently occupy second spot on the Index, impose an 8.4% tax on sports betting and between 20% and 28% on online gambling.
It is, therefore, unlikely that Connecticut legal sports betting or Connecticut online casino gambling will see it challenge those bigger states but it is a strong move from one of the union’s more affluent members.
The proximity of Connecticut to New York will also increase the pressure on the Governor Andrew Cuomo to accelerate legal gambling in the Empire State. Once Connecticut passes their gambling expansion bills it means New York will be bordered on all sides by legal gambling states and the revenue drain will become even more marked.