While Sportech Venues Inc. has the exclusive license to offer off-track betting in Connecticut, that hasn’t stopped out-of-state and online operators from taking wagers from state residents.
According to the company, the practice not only deprived it of revenue, but also meant lost tax revenue for the state.
Gov. Ned Lamont’s recently approved budget package includes language aimed at discouraging the practice. Any advanced-deposit wager, including by telephone or electronic device, placed from within Connecticut shall be considered to be made exclusively in the state. Only the state-authorized operator may accept off-track or advance deposit wagers from within Connecticut, according to the statute. If anyone violates these rules, it will be a violation of state unfair trade practice and professional gambling law.
Lora Rae Anderson, a spokesperson for the state Department of Consumer Protection, said it is currently illegal for off-track betting facilities in other states to take bets from those in Connecticut — by phone, online or any other method.
“The change would make taking those bets a violation of the Connecticut Unfair Trade Practices Act [CUTPA],” Anderson said. “The motivation for the update was that based on Sportech’s research, other states with similar laws have seen increased compliance.”
Violations of CUTPA can lead to restraining orders, damage awards and civil penalties issued against offenders.
The new language takes effect on Oct. 1.
Sportech Venues Inc. is a division of Sportech PLC. It operates 16 wagering venues and sports bars, including on Long Wharf Drive in New Haven, under the brands “Winners” and “Bobby V’s Restaurant & Sports Bar.” It offers legal online betting on sports racing, with a portion of wagers going to the Connecticut General Fund and municipal tax funds.
According to the company, the legislation helps prevent unlicensed online operators from taking wagers from state residents.
Ted Taylor, president of Sportech Venues Inc., said the company has invested heavily in its Connecticut business on the basis of its license here, and it is pleased with the legislation.
“We are the only ones legally licensed in the state to provide these services,” Taylor said. “With a lot of business going online, our business has declined because a lot of money is being bet online with companies not licensed in Connecticut. This meant Connecticut’s tax receipts were going down.”
According to Taylor, cease-and-desist letters to out-of-state companies accepting wagers were largely ignored because Connecticut’s law “wasn’t strong enough.”
“This was a good result for both Sportech and for the people of the state of Connecticut,” Taylor said. “If money is bet with a licensed operator, the state will get its tax money, and we will be able to have a thriving business in Connecticut.”
Department of Consumer Protection statistics show a decrease in transfers to the general fund from off-track betting in recent years. It was at $5.1 million in 2006, for example, but declined to $3.7 million in 2012 and $3.4 million in 2017.
