Connecticut Issues First Sports Betting Licenses: Mohegan Partners With FanDuel Sportsbook
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Some exciting news has come out of Connecticut as the Constitution State has seen its first provisional licenses for fantasy sports and sports betting operators issued. Governor Ned Lamont signed sports betting and Daily Fantasy Sports (DFS) into law earlier this year, with three licensors able to control the activities. Two federally recognized tribes – the Mashantucket Pequot and Mohegan – and the Connecticut Lottery Corporation got licenses. Those licenses allow them to partner with one sports betting operator and one DFS operator. The initial licenses are provisional and expire on September 30, 2021, at which point Connecticut must issue more comprehensive long-term licenses.
HB 6451 Passes
In May 2021, the state legislature approved HB 6451. Later that month, Governor Ned Lamont legalized sports betting by signing HB 6451 into law. This new bill amended gaming compacts with the Mashantucket Pequots and Mohegan Tribe to include retail and online sports betting. On July 1, HB 6451 officially became law and saw sports betting and iGaming legalized in the state. Connecticut was previously one of 20 states where it’s legal to operate traditional sports betting and DFS contests without any license or registration. However, that will now change as Connecticut goes from one of the easiest states for fantasy/sports betting startups to one of the most difficult.
Daily Fantasy Sports
Connecticut had had legal DFS for years before traditional sports betting became legal, but the new legislation will see a previously open market become much more restricted. DraftKings and FanDuel signed new licenses to operate in Connecticut that will last until September 30. They had to pay licensing fees – FanDuel paid $325,914.91, and DraftKings paid $832,383.45. Smaller operators such as PrizePicks, Underdog Fantasy, and Yahoo Fantasy Sports have ceased operations, but the Connecticut Lottery can still sign with one of them to provide DFS contests.
Sports Betting Partner Updates
Sports betting operators are well on their way to establishing operations in Connecticut, with partnerships on the way. The Mashantucket Pequot have partnered with DraftKings Sportsbook, while Mohegan announced on Wednesday they will be partnering with FanDuel. Ray Pineault, president and CEO of Mohegan Gaming and Entertainment, said they’re “confident that FanDuel will deliver a best-in-class digital and in-person experience for our loyal guests.”
The Mohegan had previously partnered with Kambi, a platform provider for sports betting, with plans to have their own sportsbook. However, Mohegan has since decided they want a partner with more brand recognition and an established consumer base such as FanDuel. Mohegan will still honor the initial agreement with Kambi and owe the company their projected revenue from the contract. It will cost the Mohegan a hefty chunk of change to amend the initial agreement, so FanDuel must be offering the tribe a ton of money.
The Connecticut Lottery is still set to agree to a partnership with a sportsbook, and it has reportedly received five bids, picking one to be the official provider. Such sportsbooks as BetMGM, WynnBet, William Hill, and PointsBet are among the likely contenders for this bid. Regardless of whoever earns the initial license through the Connecticut Lottery, it will be a precious short-term partnership with the launch of the Connecticut sports betting market being very closed-off and restricted.
