Connecticut makes its first deal to take online casinos live
Connecticut Gov. Ned Lamont has made an agreement with the Mohegan Tribe that would allow online casinos to operate in the state.
The agreement sets a 20% tax rate for online gaming.
The license agreement will run for ten years with an option to extend for an extra five years afterward.
What does CT stand to gain?
Gov. Lamont has stated that this agreement has the potential to generate “tens of millions of dollars in new revenue for the state.”
“This agreement represents months of hard work and dedication to getting a deal that’s best for the residents of Connecticut and moves our state forward when it comes to the future of gaming. We are incredibly fortunate to have such a devoted partner in these efforts like the Mohegan Tribe, as they have been open to negotiation, honest discussion, and a positive path forward that is beneficial for both their tribe and the State of Connecticut.”
Initial estimates are that Connecticut could see up to $47.3 million by the end of 2023 thanks to the legalization of online gaming.
The majority of the revenue generated is expected to go towards funding for education targeting lower-income families to afford community college.
Why is this happening now?
COVID-19 has hit every state around the country hard in almost every business sector. Because of this, governments are seeking out new means of revenue to help fund necessary programs like infrastructure and education.
In his State of the State address, Gov. Lamont personally cited legalizing online casinos as one of the best avenues to take to help Connecticut recover from the economic fallout of the pandemic.
Other states like New Jersey, Pennsylvania, and now Michigan have already seen massive returns on investment from having done so.
And Connecticut is not alone in moving towards legalization. Indiana and Illinois are both making moves to do the same.
Is this a sign of a possible federal movement? Only time will tell.