Just days ago, officials at Connecticut’s off-track betting operator Sportech were feeling hopeful about getting a piece of a legalized sports-betting market in the state.
By Tuesday night, Sportech was threatening to sue the state, following an announced deal on sports betting and online casino gaming between Gov. Ned Lamont’s office and the Mohegan tribe, which Sportech claims could leave it out in the cold.
Under the deal, which has not yet been agreed to by the Mashantucket Pequot tribe that operates Foxwoods, the Connecticut Lottery Corp. would be in charge of 15 brick-and-mortar sports-betting locations and would also operate an online sports-betting site.
The lottery would be allowed to sub-license “some” of those locations to Sportech for 10 years, with a five-year extension option, but it’s unclear how many sublicenses there might be, or if Sportech would have to pay the state a percentage of the proceeds on top of a 13.75% tax on sports betting that’s already envisioned by the deal.
Lamont’s statement Tuesday was silent on Sportech getting any online sports-betting rights.
In an interview with the Hartford Business Journal on Wednesday morning, Sportech Venues President Ted Taylor said the online piece is crucial.
“Just being given bricks-and-mortar sports betting is kind of like being given a Blockbuster and being asked to compete with Netflix,” Taylor said, estimating that online sports betting would represent 75% to 85% of the market.
“Right now there’s a little bit of exasperation,” he added.
Taylor declined to comment on what legal grounds Sportech might sue the state if the final deal doesn’t go its way.
“It’s the last thing we want to do,” he said of filing a potential lawsuit.
He said Lamont’s announced deal lacks key details that he and his team are trying to nail down.
“More clarity is needed,” he said.
Sportech has closed several of its “Winners” off-track betting facilities during the COVID-19 pandemic, and is now down to 11, which are operating under the state’s pandemic restrictions on capacity. Taylor said the Bobby V’s Restaurant & Sports Bar locations in Windsor Locks and Stamford, which Sportech operates, have been harder hit by the pandemic.
“Anyone who runs a sports bar and restaurant… it’s been tough,” he said.
Sportech has been evaluating real estate options for expanded facilities in Hartford, New Haven and Bridgeport — three locations that Lamont’s deal with the Mohegans says will include sports-betting facilities.
While the lottery and the two casinos bring far more revenue to state coffers than off-track betting, Taylor said Sportech and its 400 employees shouldn’t be ignored.
“Over the last 10 years we have never taken a penny out, we’ve brought money in, we’ve kept things going when times were hard because we’ve been hoping to benefit from this long-term opportunity,” he said of the potential for legalized sports betting.
Lamont’s office did not immediately respond to a request for comment Wednesday morning, though it released a statement before noon urging the Mashantucket Pequots and their eastern Connecticut representatives to support the deal.
“The administration agrees that the Mashantucket Pequot Tribal Nation must be a party in any agreement, and that this agreement is best for the entire state, especially Eastern Connecticut, where the tribes employ thousands of people and contribute significantly to local economies and communities,” Lamont’s Chief of Staff Paul Mounds said. “This expansion of gaming in Connecticut is a financial benefit to both tribes and will provide long-term stability for both sovereign governments. Governor Lamont is urging the Mashantucket Pequot Tribal Nation to join this agreement immediately, and Eastern Connecticut legislators should do the same.”
