A bipartisan group of state lawmakers has proposed legislation that would legalize sports betting and authorize the state’s two casino-operating tribes to open gaming facilities in Bridgeport and East Windsor.
With no 2019 legislative special session in sight, the lawmakers, who hail from districts mostly tied to existing or proposed casino sites, unveiled a bill Wednesday that seeks to resolve in one fell swoop a number of stalled gambling initiatives.
However, the bill may not check all the boxes for Gov. Ned Lamont, who expressed concerns during the legislative session about the potential for prolonged litigation if the state awarded a Bridgeport casino license to the Mashantucket Pequots and Mohegan tribes — which pay 25 percent of their slot machine revenue to Connecticut under a longstanding compact — rather than opening it up for competitive bidding, or coming to some other grand bargain with MGM and the tribes.
In early June, in the final hours of the regular session, lawmakers placed a similar arrangement on the table, but Lamont opposed it. During a press conference Wednesday morning, Lamont recalled that proposal, saying it “felt half baked.”
Lamont did not commit to supporting or opposing the newly announced legislative deal.
“There is a solution that will avoid litigation and that’s my priority,” Lamont said.
MGM did not immediately respond to a request for comment Wednesday morning.
Sen. Cathy Osten (D-Sprague), whose among the coalition proposing the bill, said Wednesday she’s holding out hope for a 2019 special session in which the proposal will be discussed.
“[The tribes] are not asking for taxpayer dollars and are asking for support from the state of Connecticut,” Osten said. “I think Connecticut should be supporting Connecticut companies and move forward with companies that have jobs and revenue at risk.”
According to the bill unveiled Wednesday, the measure would allow the tribes to build the state’s third tribal gaming operation in Bridgeport. The Mashantucket and Mohegan tribes would be required to provide a minimum investment worth $100 million for the total $300 development. No taxpayer money would be used for the proposed project.
Construction of the facility is expected to create at least 1,000 jobs and another 500 permanent positions when the casino debuts.
The bill also allows the tribes to move forward on an already approved plan to build the $300 million Tribal Winds casino in East Windsor.
Sports wagerings would be taxed at 8 percent and internet gaming would be taxed at 10 percent, state officials said Wednesday.
In total, the Bridgeport casino would generate an estimated $15 million for the state of Connecticut. In its first five years, sports wagering is expected to generate $33 million and internet gaming would collect another $87 million over that time.
Also, the sweeping legislation would allow the tribes and the Connecticut Lottery to offer online and app-based lottery ticket sales.
The lottery would also be allowed to offer iKeno, generating an estimated $40 million for the state over five years. However, the proposal does not call for the lottery to take sports bets, which is something its leaders have lobbied for in recent years.
Asked for comment on the proposal Wednesday, lottery CEO and President Greg Smith issued the following statement: “We have seen the latest bill and saw similar proposals this past spring that seemed to favor tribal exclusivity. The CT Lottery expects to remain part of the conversation going forward.”
The bill would also allow for retail sports wagering and e-sports facilities known as “entertainment zones” in Hartford and two other cities selected by the two tribes. Those facilities are expected to create 100 jobs.
The Bridgeport casino will also contribute 10 percent of the table game revenues to the state’s tourism marketing fund, which has been significantly lowered in recent years.
The two tribal casinos in a joint statement Wednesday said they were “extremely grateful” that the proposed bill has received bipartisan support from members of the House of Representatives and the State Senate.
“We’ve long believed that the best way forward for the state is to protect and preserve the historic partnership with our two Tribes, one that’s generated more than $8 billion in revenue for Connecticut,” according to the statement from Mashantucket board chairman Rodney Butler and interim Mohegan board chairman James Gessner.
They continued: “The draft legislation takes us one step closer to that goal, and we look forward to continuing our discussions with the governor and legislative leadership in the near future.”
This story has been updated
