Connecticut, Mohegan Tribe reach agreement on sports betting, online gambling markets

Connecticut is poised to join the sports betting business.

Gov. Ned Lamont announced Tuesday that the state had reached an agreement with the Mohegan Tribe that will lead to the launch of sports betting and online gambling markets.

The 10-year agreement will give the Connecticut Lottery the right to operate 15 retail sports betting locations, including at new venues in Hartford and Bridgeport, as well as an online sportsbook.

"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," Lamont said in a release announcing the agreement.

It's estimated that sports betting and online gambling will generate "tens of millions of dollars in new revenue for the state," according to the release from the governor's office. Online gambling revenues will be taxed 20% and 13.5% for sports betting.

No timeline for launch was provided Tuesday.

The state and tribes had struggled to come to an agreement in recent years, while surrounding states New Jersey, New York and Rhode Island launched sports betting markets.

"This path will allow Connecticut to generate tax revenue from sports and online gaming that are competitive with other states and help keep Connecticut with those states when it comes to growing our economy and benefiting the state budget," Mohegan Tribe chairman James Gessner Jr. said in the release.

According to the Hartford Courant, The Mashantucket Pequot Tribal Nation, which operates Connecticut's Foxwoods Resort Casino, is not a party to Tuesday's agreement, although discussions are ongoing.

Legal sportsbooks are currently operating in 20 states and the District of Columbia, with several more jurisdictions poised to launch sports betting markets as soon as this year.