Connecticut Gambling Regulation

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Gambling Legislation imageHome of Yale University and ESPN, Connecticut is the third-smallest state in the US and also one of the most prosperous. It ranks second in personal income per capita after the District of Columbia, with an average income of $79,000 per resident. Residents’ high incomes, the state’s dense population, and its relatively lenient attitude toward gambling combine to make Connecticut a small hotbed for wagering activities.

Residents of the Nutmeg State have access to various legal forms of gambling. State-operated lotteries, casino gaming, pari-mutuel wagering, social and charitable gaming all enjoy legal status here. Two tribal casinos call the state their home: the Mohegan Sun in Uncasville and Foxwoods Resort Casino in Mashantucket.

The two tribal gambling businesses provide employment to more than 24,200 Connecticuters and annually contribute over $768 million in taxes and tribal revenue-share payments. Recent legislative changes paved the way for an expansion of gambling in the state.

Locals can now wager on sports at retail locations as well as remotely via licensed sportsbook apps and websites. Online casino games are also regulated and legal in Connecticut, with players enjoying a broad selection of games, including slots, blackjack, baccarat, and roulette. Participating in daily fantasy contests is another option for Connecticuters who want to gamble remotely.

Landbased Gambling Laws in Connecticut

Land-based gambling activities in Connecticut are regulated by several pieces of legislation, including the Connecticut General Statutes, Public Act 17-89, and Public Act 17-161. The Indian Gaming Regulatory Act is the primary statute that governs casino gaming on tribal lands within the state. The Gaming Division within the Department of Consumer Protection oversees most forms of legal gambling in the Nutmeg State and enforces state gambling laws.

Connecticut General Statutes
Mashantucket Pequot Compact
Mohegan Tribe Compact
The Indian Gaming Regulatory Act (IGRA)
Public Act 17-89
Public Act 17-161

Tribal Gaming Compact Terms and Requirements

Commercial casinos remain unavailable in Connecticut, and that situation is unlikely to change soon now that the Tribal Winds project is officially on hold. Accordingly, no licensing structure is in place for commercial gaming in the state. The Mohegan and Mashantucket Pequot tribes therefore operate under the terms of their respective compacts.

Terms of Mohegan Compact
Terms of Mashantucket Pequot Compact

Legal Status of Online Gambling

casino laws imageAfter several false starts, the Connecticut Legislature finally legalized online gambling in May 2021 when HB6451 passed into law as Public Act 21-23. The legislation marked the first major update of local gaming laws since Foxwoods Resort Casino and the Mohegan Sun opened their doors in the 1990s. It ushered in a new era of interactive gaming, bringing legal online sports wagering and online casino games to Connecticuters.

Public Act 21-23 authorized the issuance of three master licenses, one each for the Mohegan Tribe, the Mashantucket Pequot Tribe, and the state-sanctioned Connecticut Lottery Corporation (CT Lottery). Each entity can operate no more than one online sports wagering skin. The Mohegan Tribe teamed up with FanDuel, the Mashantucket Pequot partnered with DraftKings, and the CT Lottery entered into a partnership with SugarHouse.

Locals can bet on sporting events via websites, dedicated mobile applications, retail locations, or designated betting kiosks at the tribal casino resorts. Bettors who want to place wagers remotely may do so only while located within state borders, although visitors to the Nutmeg State can join the action as well. Geolocation technology verifies each bettor’s location. The minimum age requirement matches the legal drinking age: 21 years old.

Daily fantasy sports also became available to Connecticuters thanks to Public Act 21-23. The act contains restrictive provisions that prohibit sportsbooks from accepting wagers on collegiate events if the participants are from Connecticut colleges or universities. Taking action on high-school games is off-limits as well.

The two tribal operators received authorization to offer regulated interactive casino games, including roulette, baccarat, blackjack, video poker, keno, and slots. The state lottery operator, however, is not permitted to offer remote gaming. Amendments were introduced to the two tribal compacts to allow for the new forms of gambling created by the 2021 legislation.

Gambling Taxes in Connecticut

1Exclusivity Fees

The two sovereign nations pay exclusivity fees for offering casino-style gaming in Connecticut. Each tribe must set aside 25% of the net revenue generated from slot machines for tax purposes. Online slots and table games run by the Mohegan and Mashantucket Pequot tribes are taxed at 18% of gross revenue.

2Sports Betting Taxes

Connecticut directs the tax money collected from the two tribal nations to the State General Fund. The state then returns roughly $135 million of these payments to the Mashantucket Pequot and Mohegan Fund. Retail sports betting at tribal sportsbooks is taxed at 13.75%, while the tax rate on online wagering revenue is 18%.

3Initial License and Renewal Fees

The Mohegan Sun and Foxwoods Resort Casino do not pay license fees. However, companies that supply online gaming platforms to master licensees must pay an initial licensing fee of $250,000 and an annual renewal fee of $100,000.

Entities contracting with master licensees to provide retail betting systems and equipment are charged an initial application fee of $20,000, with the same amount due each year for license renewal. Connecticut sports wagering laws do not require integrity payments to professional sports leagues.

4Allocation of Tribal Gambling Revenue

Under IGRA requirements, the Mashantucket Pequot and the Mohegan Tribe must use gambling funds to support their communities and promote the development of the tribal economy.

A portion of the revenue is donated to local charitable organizations, while the remainder goes to local government agencies. Foxwoods also supports addiction prevention and treatment programs such as the Connecticut Council on Problem Gaming.


Responsible Gambling Policies in Connecticut

The minimum age for gambling in Connecticut is the same as that for purchasing alcoholic beverages. Accordingly, Mohegan Sun and Foxwoods cannot admit anyone under 21 to their gambling facilities. Online players face the same restriction and must undergo mandatory age and identity verification during registration. The compact terms also allow both tribal casinos to serve complimentary alcoholic beverages to their patrons.

Responsible Gambling Policies
Advertising Policies and Restrictions

Gambling Regulators in Connecticut

regulation imageThe Gaming Division of the Department of Consumer Protection is the main watchdog that oversees gambling operations in Connecticut. The Division interacts with the two authorized tribes to ensure all gaming employees have obtained the necessary permits to conduct casino-style games. It also supervises the Connecticut Lottery Corporation to maintain the integrity of state-sanctioned lotteries.

Additionally, each sovereign nation has established its own tribal gaming agency. The Mohegan Tribal Gaming Commission (MTGC) watches over the Mohegan Sun. It is responsible for ensuring all gaming within the tribe’s reservation is conducted in line with the terms of the Mohegan compact. The Mashantucket Pequot Tribal Nation Gaming Commission (MPTNGC) exercises regulatory oversight over all gambling operations conducted by the Mashantucket Pequot Tribe. Each gaming agency must report to its respective tribal council.

And finally, there is the National Indian Gaming Commission (NIGC), created under the provisions of IGRA. The NIGC is an independent oversight body that works with the US Departments of the Interior and Justice. The agency oversees all gambling activities in the Class II category as well as certain aspects of Class III gambling.

It provides training and technical assistance to the individual tribal commissions. All tribes must submit their councils’ gaming ordinances to the NIGC for assessment and approval before they can operate any gambling facilities.

Conclusion

Connecticut offers somewhat limited options for land-based gambling, with no commercial casinos and only two tribal casino resorts. On the positive side, the Nutmeg State has expanded online gambling thanks to recent changes in legislation that allow for the legal and regulated provision of remote casino games, sports wagering, and daily fantasy contests. Judging by initial results, Connecticut is set to become a strong competitor on the interactive gambling scene. The state collected $1.7 million in tax revenue during the first month of regulated online sports betting and casino gaming alone.