Connecticut Sportsbook is another state that needs to partner with tribal casinos to handle anything related to gambling. However, with revenues declining due to coronavirus governor Ned Lamont, he announced his desire to work with the tribes to get both sports betting and iGaming up and running to help fund the state.
Comments from Governor Lamont
These comments were made available after a biennial budget address on February 10th. In addition to endorsing sports betting and iGaming, Governor Ned Lamont is also putting laws before the State Congress that he believes will benefit everyone involved.
We have seen that the governor's support for sports betting and iGaming can massively improve a state's ability to legalize. Both New York and Arizona appear to be in the fast lane for mobile sports betting thanks to support from a state governor.
Connecticut Sportsbook and Tribal Casinos
Negotiations are currently ongoing on how to proceed. It seems that tribes will surely be a part of this gaming expansion when it happens; However, exclusivity is the real question. We have seen in other states that often a government simply distributes skins, also known as betting licenses, to the tribes who can then partner with non-state sports betting.
There is no reason Connecticut could not do this and still have a thriving online gaming scene as they could simply issue multiple licenses to the casinos. The only concern, however, is that many will go unused.
As of now, one of the two main tribes responsible for gambling, Foxwoods already has a partnership with DraftKings, a leading provider of sports betting in the country. DraftKings is hands down one of the biggest and best sports betting. If Connecticut goes down this avenue, expect DraftKings to be one of the first to open its online casino and bettor sports betting in the state.
Can iGaming & Sports Betting Really Solve the Budget?
The short answer is no. However, IGaming and sports betting could go a long way in increasing the state's revenue. Connecticut is a fairly wealthy state, with a respectable three and a half million residents. The numbers it could bring in for sports betting and online casinos could be very decent.
However, Connecticut needs to take a smart approach to this and ensure that revenue is maximized, much like what Tennessee did in their state. If Connecticut takes the Colorado or New Jersey approach, it won't help the 2021 budget. These states are too weather-friendly and have too low tax rates to really get a real boost to Connecticut's budget right away.
There is now New York, which will charge a one-time license fee of $ 12 million for sports betting when current legislation goes into effect. Obviously, this would immediately bring an enormous inflow of money to the state. However, Connecticut would have a tough time doing this while it continues to pair up with tribal casinos.