Connecticut is Ready to Join Sports Betting Population

Thanks to the hard work of Connecticut Gov. Ned Lamont and state lawmakers in Connecticut, Connecticut residents will be able to legally bet on sports at some time in the near future. The question on everyone's mind is exactly when will that be?

First and foremost, the start of the NFL season is the state's primary goal for a start date. With so much sports betting tax revenue associated with betting on NFL games, it's not something the state or even bookmakers want to miss out on. Of course, sports bettors are definitely pulling for the ability to bet on NFL games by the start of the regular season in September.

While this is clearly the goal, there are concerns that a lot still needs to get done before betting on 2021 NFL games becomes a reality. It is important to note that lawmakers in Connecticut have not yet approved online sports betting. All current efforts are focused on getting retail sportsbooks up and running.

What Needs to Get Done

Based on the way lawmakers have set up the Connecticut Lottery to run some of the sports betting operations, the first task at hand is picking a sports betting partner. As of today, the task is underway. It's noteworthy that DraftKings already has partnered with one of the Indian Tribes to offer sports betting on the Tribe's behalf. It is not clear whether or not DraftKings could also represent the Lottery's interest.

Along with selecting a sports betting partner, the Lottery still has a lot of logistical issues that need addressing. The list of to-dos includes the purchase of geolocation software for bettor tracking, implementing fraud safeguards, testing software products, the selection of retail betting locations, and the actual building of new retail betting locations. To meet the NFL target, all of this needs to get done in less than five months.

Since online sports betting is a goal for the future, all eyes are going to be looking at the states retail sports betting options. With that in mind, here is a list of the parties that will be working behind the scenes to bring retail sports betting to the residents of Connecticut:

• The Lottery will have control over as many as 15 retail sports betting locations
  
• Sportech (pari-mutual horse betting operator) is also entitled to 15 locations
  
• Two new retail sportsbooks in Bridgeport and Hartford under Lottery control
  
• The Mohegan tribe partnered with Kambi
  
• The Mashantucket Pequot tribe partnered with DraftKings
  
• The Lottery with a partner TBD (RFP has been floated)
  

As for additional information related to sports betting operations in Connecticut, the tax rate on betting revenue has been set at 13.75%.

While the Lottery is likely to go with one exclusive operator, it is not yet clear which direction they will go. The options would include William Hill, FanDuel, Caesars, Kambi, and DraftKings, though the latter two providers are already obligated to their respective Indian Tribes.