Connecticut hands over the bill for online gambling and sports betting

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Outside of federal government interference, online poker and sports betting are coming to Connecticut.

Late Tuesday night, the Senate passed a bill that allowed the Mohegan and Mashantucket Pequot tribes to offer both online gambling, including poker, and sports betting, as well as allowing the Connecticut lottery to offer sports betting.

The bill passed the upper house of parliament overwhelmingly by 28-6 votes after a short debate on the bill. It comes less than a week after the House passed the same 122-21 bill.

The bill is now on the desk of Governor Ned Lamont, who has said he will sign it into law. It was Lamont who brought the two tribes who own two Las Vegas-style casinos in the state to the negotiating table earlier this year and agreed to an online gambling deal in March.

The legislation updates the existing gaming arrangement between the state and the tribes. Tribes will be able to offer online gambling in the state while adding both online and retail sportsbooks to their offerings.

In exchange for expanding online casino operations, the lottery will also have the rights to offer both online and retail sports betting.

Since the legislation concerns an existing gaming agreement between a tribal entity and the state government, it is subject to approval by the Department of the Interior. Once approved, Connecticut will become the seventh state to legalize online poker. It joins Nevada, New Jersey, Delaware, West Virginia, Pennsylvania and Michigan.

It becomes the third state in New England to legalize sports betting, joining Rhode Island and New Hampshire. However, betting on collegiate athletic events in the state will not be allowed.

The bill does, however, include a 10-year hiatus in the development of a proposed East Windsor casino that would be owned by both tribes to compete with MGM Springfield. Despite the regulations, both tribes had already agreed to put the project on hold.

Online gambling revenue will be taxed at 18% for the first five years and 20% thereafter. Sports betting will have 13.75% of revenue tax. Early estimates by the Office of Fiscal Analysis indicate that these provisions collectively generate $27.9 million in new tax revenue.

A timetable for launching the new market has not yet been determined.

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