Connecticut Gov. Lamont signs sports betting bill that now awaits federal approval

Connecticut Gov. Ned Lamont on Thursday signed legislation that finally legalizes sports wagering and online gambling, the last step before the U.S. Department of Interior is asked to sign off on an amended gambling compact between the state and the Mashantucket Pequot and Mohegan Tribes.

By signing the bill into law, Lamont ended years of debate and failed negotiations with the state’s two federally recognized tribal nations, who have exclusive rights to certain forms of gambling in the state. They own and operate Mohegan Sun and Foxwoods Resort Casino in southeastern Connecticut.

Under the agreement Lamont and his administration reached with tribal leaders, both sovereign nations will be allowed to offer sports betting, online gambling and online fantasy sports, on and off their reservations, in return for providing the state a share of the revenues.

The legislation also allows the quasi-public Connecticut Lottery Corporation to offer online sports wagering and retail sports betting at 15 locations, including ones specifically located in Hartford and Bridgeport.

For internet gambling, the state's tax rate on gross revenues will be 18% for the first five years and then 20% for the next five years, with an option to continue for another five years. The tax rate on sports betting and fantasy contests will be 13.75%.

The deal also includes the expansion of iLottery and Keno through the Connecticut Lottery Corporation, including the sale of draw tickets online, and an agreement that the tribes halt development of an East Windsor casino.

The new law expected to generate tens of millions of dollars in revenue for the state, is the culmination of negotiations that stretch back years to a 2018 U.S. Supreme Court decision that lifted a federal ban on state authorization of sports betting. While other states like New Jersey and Rhode Island moved ahead with sports betting, Connecticut sat on the sidelines as officials tried to reach agreement with the state’s two federally recognized tribes who argued they should have exclusive rights to sports betting.

"I am confident that the federal government will see fit to approve these amendments to our compact, and in the coming months we can launch a modernized, 21st century gaming experience in Connecticut," said Lamont in a statement.