The legislature’s passage of a bill authorizing a third Connecticut casino adds an additional level of uncertainty to the future of the state’s off-track betting (OTB) operator, Sportech Venues.
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The legislature's passage of a bill authorizing a third Connecticut casino adds an additional level of uncertainty to the future of the state's off-track betting (OTB) operator, Sportech Venues.
Last fiscal year, Sportech raked in $164 million in revenues, on par from a year earlier but down from $255 million in 2005, according to figures provided by the Department of Consumer Protection.
Expanded casino gaming is a potential threat to Sportech, which once hoped lawmakers might designate one of its dog and horse-racing betting parlors as the third casino site.
It's unclear whether Sportech, which has invested millions of dollars in new and renovated facilities, would have a relationship with a third casino jointly operated by the tribes that own Foxwoods and Mohegan Sun. Sportech has provided management services for Mohegan's racebook for years.
Besides expanded gaming and entertainment options, OTB revenues face a variety of other headwinds.
For example, Connecticut residents can bet on races through a variety of offshore websites, which skirt the law.
The industry is also up against an overall decline in interest from gamblers.
A Plainfield greyhound-racing track that drew more than 1 million spectators in the late 1970s closed in 2005 after attendance dipped to 90,000.
In addition, many states have banned greyhound racing, citing concerns over cruelty or inhumane treatment of dogs.
While an East Windsor casino could potentially skim revenue from Sportech's nearby facilities in Windsor Locks and Hartford, lawmakers also threw the company a bone last week.
The House narrowly passed an amendment to the casino expansion bill that would increase the number of OTB facilities in the state from 18 to 24. The Senate approved the measure by a vote of 22-14 hours before the session officially ended last week.
Sportech currently operates 15 facilities, with another slated to open this month in Stamford.
The company, which pays approximately 2 percent of its revenues to the state, expected to hit the 18-facility cap as soon as year's end.
The bills passed by both chambers  also instruct the Department of Consumer Protection to create state regulations for sports betting, which, if ultimately enacted, could be a boon for Sportech.
– Matt Pilon
[Editor's note: This story has been updated to reflect a Senate vote approving the House amendment, which took place shortly after the HBJ's print edition went to press.
