Requests for Qualification filed
As Connecticut prepares to enter the online and retail sports betting world, a total of 15 companies have shown interest in offering services in the state. The Connecticut Lottery Corporation (CLC) announced this week that it received 15 Request for Qualification (RFQ) responses; operators had until April 23 to turn in requests.
must approve the agreement before the new industry can move forward
Last month, the state signed a deal with the Mohegan Tribe and Mashantucket Pequot Tribe to legalize sports betting in retail and online formats. The state’s General Assembly and the US Department of the Interior must approve the agreement before the new industry can move forward.
Sports betting partnership
The Connecticut Lottery Corporation will now review the RFQs. Officials will choose which companies to invite to present their formal business plans. The Lottery will issue a timeline to the interested companies to turn in the requested information.
Connecticut Lottery Corporation chairman Rob Simmelkjaer stated that the Lottery is pleased to have seen significant interest from companies looking to build a sports betting partnership in the online and retail market: “Our staff and board will now begin the process of carefully reviewing the qualifications of the submitting partners as we work towards choosing the right partner in this critical initiative for our state.”
The new industry will include an online and mobile platform. For the retail operations, there can be up to 15 locations. Bridgeport and Hartford will each be home to retail outlets.
Tribal compact negotiations
When March began, Governor Ned Lamont announced he had reached an agreement with the Mohegan Tribe to introduce sports betting and online gaming via the tribe’s casino in Connecticut. Not long after this deal, the governor announced an agreement with the Mashantucket Pequots.
Officials amended the two tribal compacts to add the new gaming options. According to Lamont, the change will provide tens of millions in new revenues to the state.
The negotiations created an 18% tax for the online gaming industry for the first five years of operation. The rate will then increase to 20% for another five years. Online and retail sports betting has a much lower tax rate of 13.75%.
A key component to the agreement was allowing an outside entity to offer sports betting in order to avoid a tribal monopoly. The decision was to allow the Connecticut Lottery to operate 15 retail locations. The Lottery is also allowed to offer one online betting skin.