In a recent development, Governor Ned Lamont of Connecticut has reached an agreement with the Mohegan Tribe to permit the operation of online casinos within the state.
The agreement establishes a tax rate of 20% for online gaming.
The license agreement is valid for a period of ten years, with the possibility of extending it for an additional five years thereafter.
What are the potential benefits for CT?
According to Gov. Lamont, this agreement holds the possibility of producing “tens of millions of dollars in fresh revenue for the state.”
The agreement symbolizes extensive effort and commitment to securing a beneficial deal for the people of Connecticut and advancing our state’s gaming future. We are extremely fortunate to have the Mohegan Tribe as a dedicated partner in these endeavors. They have shown willingness to negotiate, engage in honest discussions, and collaborate on a mutually beneficial path for their tribe and the State of Connecticut.
The initial projections suggest that Connecticut stands to earn approximately $47.3 million by the end of 2024 as a result of the legalization of online gaming.
It is anticipated that a significant portion of the generated revenue will be allocated to support educational opportunities for lower-income families, specifically enabling them to afford community college.
What is the reason behind this occurrence at this moment?
The impact of COVID-19 has been severe in every state across the country, affecting various sectors of the economy. Consequently, governments are exploring alternative revenue sources to support essential programs such as infrastructure development and education.
During his State of the State address, Governor Lamont personally emphasized that legalizing online casinos is among the most promising measures to aid Connecticut in its economic recovery from the pandemic’s aftermath.
States such as New Jersey, Pennsylvania, and now Michigan have already experienced significant returns on investment by implementing similar strategies.
Connecticut is not the only state progressing towards legalization; Indiana and Illinois are also taking steps in that direction.
Only time will reveal whether this indicates a potential federal movement.
