The newly disclosed multi-channel partnership between the tribal operation Foxwoods Resort Casino and fantasy sports provider DraftKings has paved the way for legal sports betting in the Constitution State. Sean Scanlon, a member of the Connecticut House of Representatives, is positive the state will legalize sports wagering in 2021.
Representative Scanlon lamented the missed opportunities for legalization from previous years and insisted the introduction of a legal sports betting industry is among his greatest priorities for 2021. Connecticut lawmakers have attempted to draft a bill allowing sports wagering on previous occasions but to no avail. Each attempt was struck down by Connecticut’s compacts with tribal operations like the Mohegan Sun and Foxwoods.
Tribal casino operators claim they have exclusive rights over gambling in the Constitution State. Commercial sports betting operators, on the other hand, are not keen on being shut out of the local market, threatening to take legal actions. Connecticut Governor Ned Lamont backs the idea of further gambling expansion but says this would be possible only after further negotiations with the tribal operators.
DraftKings’ collaboration with the Mashantucket Pequot tribe that operates Foxwoods will allow the betting and gaming operator to expand its presence in the tri-state area. After it launches on December 13, 2020, via its Foxwoods partnership, DraftKings will be able to offer online contests, promotional incentives, and other integrated online experiences that aim to improve the users’ engagement. The brand presently offers mobile sports wagering in ten states.
Tribal Chairman Rodney Butler says the newly announced deal with DraftKings reinforces the tribe’s leading position in the local gambling and entertainment industries. A longstanding agreement with state authorities enables the Mashantucket Pequot and the Mohegan nations to exclusively operate gaming within state borders.
Connecticut Could Pocket $175 Million from Online Betting
In exchange for this exclusive right, the tribal nations contribute 25% of their slot machine revenue to the state coffers. Connecticut has collected over $8 billion from this arrangement over the last three decades. According to forecasts, the state could pocket $175 million in extra revenue from virtual gaming and sports betting over the following five years.
Rodney Butler, leader of the Mashantucket Pequot tribe, is even more optimistic. Connecticut would collect between $40 million and $60 million annually, Mr. Butler said. The figures would be twice as high if the state legislature approves online lotteries and keno games, the Mashantucket Pequot Chairman believes.
Foxwoods Resort Casino relaunched its operations at the beginning of June after being closed for over ten weeks. The gambling operator reported revenue of around $36 million, which corresponds roughly to a 20% decline compared to the previous year. The entire region suffered from the pandemic and its associated lockdown, shedding 12,000 job positions from October 2019 to November 2020, as was reported by the Connecticut Department of Labor.
This year’s legislative session was disrupted by the pandemic but Mr. Butler is confident that 2021 will finally see the passing of a sports betting bill. The Mashantucket Pequot Chairman believes legal sports betting could help undo the damage the state economy has suffered as a result of the pandemic and fill in the gaps in revenue.
