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    Thursday, April 25, 2024

    Malloy prepared to call special session on sports betting

    Hours after a pivotal U.S. Supreme Court ruling Monday, Gov. Dannel P. Malloy announced he’s ready to call state lawmakers back into session to consider legalizing sports betting in the state.

    Hammering out who can provide such wagering promises to be a point of contention.

    As expected, the high court, ruling 6-3 in a New Jersey case, struck down the Professional and Amateur Sports Protection Act of 1992, clearing the way for most states to legalize wagering on professional and other sports. A number of states have been drafting legislation in anticipation of the ruling.

    “In the coming days, I plan to deliberate with legislative leadership regarding the impact of this decision on the state,” Malloy said in a statement. “As of today, I am prepared to call the General Assembly into special session to consider legalizing sports betting in Connecticut. It is incumbent on us to consider the question of legalized sports betting in a thoughtful way that ensures our approach is responsible, smart, and fully realizes the economic potential that this opportunity provides.”

    Senate Republican Leader Len Fasano, in a letter to the governor, expressed support for a meeting of legislative leaders prior to a special session. Fasano, of North Haven, asked that the Office of the Attorney General be included in discussions about "legal questions surrounding this issue," namely Attorney General George Jepsen's opinion that the Mashantucket Pequot and Mohegan tribes would not have the exclusive right to offer sports betting under existing agreements.

    Joe Aresimowicz, the House speaker, termed a special session to enact legislation “an appropriate and prudent response” to the Supreme Court decision.

    “We have a bill ready to serve as a foundation that was worked on extensively this session in concert with many stakeholders, including the NBA, MLB, the tribes, OTB and the lottery,” Aresimowicz, a Berlin Democrat, said in a statement. “As a state where gaming is an important sector of our economy, we need to look ahead and be ready for what is coming and act to keep us competitive with other states.”

    Late in the legislative session, Rep. Joe Verrengia, the West Hartford Democrat who co-chairs the Public Safety and Security Committee, and Rep. Jeffrey Berger, a Waterbury Democrat, co-authored a comprehensive version of the House’s sports-betting bill, which calls for the establishment of a Gaming Commission and for the governor to negotiate new gaming agreements with the Mashantuckets and the Mohegans, respective owners of Foxwoods Resort Casino and Mohegan Sun.

    While the tribes maintain that they would have the exclusive right to provide sports betting in the state, the bill would authorize other entities as well as the tribes to provide wagering, including the Connecticut Lottery Corp. and off-track-betting facilities.

    Verrengia said questions about whether the tribes would have the exclusive right to provide sports betting did not prevent a vote on the bill during the legislature's regular session.

    “We just ran out of time,” he said. “Many members had concerns about the speculative nature of the issue because the Supreme Court had yet to act. … Ideally, I would have liked the (Supreme Court) decision a week earlier while we were in session.”

    Verrengia said the bill authorizes the governor to negotiate new agreements with the tribes specifically in regards to sports betting. The new agreements would have to be approved by the legislature, he said.

    “We applaud the Supreme Court decision and look forward to working with the state of Connecticut to legalize and appropriately regulate sports betting,” Chuck Bunnell, the Mohegan Tribe’s chief of staff, said. “We think we’re in the best position to offer this casino-type game. We’re confident we can find a path forward that’s in the best interest of all the parties involved.”

    Mashantucket Chairman Rodney Butler, in a statement, said Monday was “a historic day for the gaming industry.”

    “Although legislation didn’t pass the Connecticut General Assembly this session, we look forward to continuing the sports betting conversation with the State to determine the most sensible and feasible approach for us, Connecticut, its operators and its constituents … within the structure of our current agreements,” Butler said. “Likewise, we look forward to offering Foxwoods’ guests a safe and exciting way to bet on sports.”

    Dozens of states are expected to at least consider legalizing sports betting. In Rhode Island, a Senate bill allowing sports betting at Twin River Casino in Lincoln and at a not-yet-open casino in Tiverton has been proposed. Gov. Gina Raimondo included potential revenue from sports betting in her proposed budget for the upcoming fiscal year.

    “I think it’s in the best interest of all the stakeholders to get something done sooner than later,” Verrengia said. “We don’t want to be behind the eight ball.”

    The Connecticut bill would impose a 9.89 percent tax on the revenue earned by sports-wagering operators. Verrengia said it’s projected that the state would get about $10 million in the first year of legalized sports betting and up to $30 million to $40 million in subsequent years.

    An important aspect of the proposed legislation, Verrengia said, is that it would establish a “joint venture” between the state and the professional sports leagues whose events would be subject to wagering. While Major League Baseball and the National Basketball Association have lobbied for a 1 percent fee on wagers, the Connecticut bill instead would impose a 0.25 percent “Sports Betting Right and Integrity Fee” on all wagers placed by operators and the lottery.

    A Joint Venture Events Commission could consider scheduling professional games in the state, Verrengia said.

    “I thought it was important that the state get a return on its investment (in sports betting),” he said. “For the leagues, it’s all about bringing their product to the state. … Possibly, we could get a Patriots exhibition game at Rentschler Field or an NBA game at one of our arenas.”

    The bill also calls for the hiring of a consultant to develop a strategic plan for the expansion of gambling in the state.

    b.hallenbeck@theday.com

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