A framework for what sports betting would look like was presented to lawmakers over a month ago based on Gov. Dannel Malloy’s administration’s discussions with the state’s two casino-operating tribes, the Mashantucket Pequot and Mohegan Tribal Nations.
The agreement included a new structure for sports wagering in the state which would include a combination of reservation based wagering and commercial sites in existing locations where wagers are already being placed on horse racing. There were also specific provisions being discussed on how to handle wagers on UConn and other Connecticut state universities’ sporting events.
No agreement was ever struck between Malloy’s staff and the tribal nations and no terms were ever decided. The negotiations reached a point where the Malloy administration felt input was needed from the leaders of the General Assembly’s four caucuses.
According to five sources with knowledge of the negotiations or close to the discussions, Republicans were the ones who walked away from even considering a final agreement, even after the framework’s details were presented.
The Mohegan and Mashantucket Pequot tribes, and the Malloy administration would not comment on the details of their negotiations. House and Senate Democrats and Republicans would also not comment on the closed door negotiations.
The core of the framework was the creation of two tiers of sports betting. One tier would be exclusively for wagers placed on reservation land at Mohegan Sun and Foxwoods, and the other for wagers placed in locations like Sporttech, Bobby V’s, and existing Off Track Betting locations.
Wagers made on Mohegan or Mashantucket land would be more wide-ranging than off the reservations. Players could bet on the various outcomes of sporting events, like winners and the combined score of a given event in both tiers of gaming.
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The tier for tribal land would allow for “exotic” or “prop” bets. These kinds of wagers include those on events already in progress, long-term wagers on teams or individuals, and quirky bets like the length of the National Anthem sung before the Super Bowl.
Venues like Sporttech and Off Track Betting would be exclusively for outcome-based wagering.
There was also discussion of some kind of a mobile betting option, allowing for only outcome-based bets to be placed, but it was not clear what that structure would look like.
The issue of amateur sports was also discussed, and there was an informal agreement that UConn Husky and other state university sporting events would be off-limits for in-state wagering.
There were very early conversations on how to handle larger sporting events which have UConn as participants, like the Men and Women’s NCAA Basketball Tournaments, but no conclusion was reached.
One source said of the framework, “this was never any kind of final deal. This was more of what could be presented to the Bureau of Indian Affairs and what could be approved.”
Republicans informed the governor that their caucuses were not inclined to meet in the middle of the 2018 campaign season and preferred to wait until the next General Assembly and governor are seated in January when the issue can be addressed the most broadly.
“Sports gambling would pass in the purest possible way outside of a General Session when we have no idea what other issues this will get tacked on to,” one source close to the discussions said.
Timing was also a consideration.
If lawmakers met in a special session before the end of the year and approved some kind of a regulatory structure for sports wagering, the program would be active, possibly, during the first half of 2019.
By waiting, the issue could be on ice for the next year. Lawmakers meet in January and adjourn in June, and two sources said they would expect the sports gambling issue to be attached to a finance package for the state budget which would not see action until the end of the legislative session. Any decision from the BIA would not be expected for up to 90 days, meaning sports wagers could not be placed until the fall of 2019 at the earliest.
“The real concern is the length of time to get it passed,” one source said. “This is something we have to have sooner or later. It’s a matter of when.”
Conservative estimates show Connecticut could add about $20 million annually in new revenue to its state budget. Pennsylvania, New York, and Rhode Island all have legislation on sports gambling and could put them into effect by next year. New Jersey is currently the only state in the Northeast that offers sports gambling.
