GAMBLING:  IN CONNECTICUT AND ON THE INTERNET


Online gambing a bad bet?
By Ed Jacovino, J-I
Published: Monday, January 9, 2012 4:58 PM EST

The Indian tribe that operates Mohegan Sun Casino in Montville wants a new deal with the state if Gov. Dannel P. Malloy and legislators allow online gambling in Connecticut.

“We believe that any new law that would allow Internet gambling here would require a separate agreement with the state, and for that reason, I have been in discussions with the governor’s office,” Bruce “Two Dogs” Bozsum, the Mohegan tribe’s chairman, said last week.

The Mohegans and the Mashantucket Pequots, the tribe that operates Foxwoods Resort Casino in Ledyard, have a compact with the state that gives them exclusive gambling rights, with the exception of lottery games. In exchange, the tribes pay the state 25 percent of the revenue they receive from video slot machines.

Last year, that revenue added up to about $360 million, or just under 2 percent of the entire state budget. The amount topped $400 million before the 2008 recession that took a big bite out of casino profits.

Malloy and lawmakers are considering expanding gambling amid looming casino competition in Massachusetts and New York and a change in federal policy that allows some online gambling. Malloy has been vague about his plans, but has said he’s working with the tribes to ensure they’re part of any deal.

Lt. Gov. Nancy Wyman heads an administration task force on gambling issues.

“This issue has certainly been part of discussions I have had with the governor and the tribes in recent weeks regarding gaming, but we have reached no conclusions on the matter,” Wyman said in response to Bozsum’s call for a new agreement. Wyman didn’t comment further.

Whether expanding gambling and lottery games online would affect the state’s deal with the tribes is a question that has vexed lawmakers and lawyers in recent years. In 1993, then-Gov. Lowell P. Weicker Jr. and the Mashantucket Pequots signed the gambling compact, which later was expanded to include the Mohegan Sun Casino. That agreement doesn’t account for online gambling, however.

Bozsum was unclear as to whether he believes online gambling would violate the contract.

“The compact between the Mohegan tribe and the state of Connecticut would not be directly impacted by Internet gambling here,” he said. “However, the compact does give the tribe the exclusive right to casino games in Connecticut.”

A spokeswoman for Foxwoods didn’t return a call for comment.

State officials have warned against efforts in Connecticut to start a state-sponsored Keno game or to move some aspects of the state lottery online, for fear such moves would violate the contract.

Attorney General George C. Jepsen, a Democrat, warned that the state could risk violating the compact when he opposed a bill before the legislature in March that would have allowed the Connecticut Lottery Corp. to offer “interactive online lottery games, including online video lottery games.”

Jepsen pointed to a clause in the compact that includes “video facsimiles” of casino games as items reserved for the tribes. It was unclear whether an interactive online lottery would fall under that definition.

“A prudent and reasonable course would be to consult with the tribes to determine whether they have any concerns,” and then seek to change the compact to ensure the state complied with the agreement, Jepsen wrote. The bill died in the legislature’s Public Safety and Security Committee, which oversees gambling.

The issue also surfaced in 2009, when then-Gov. M. Jodi Rell proposed Keno. The question was whether Keno was more like a lottery or like gambling. Keno involves players guessing several numbers and trying to match them with a list generated randomly by a computer.

“Concluding whether the proposed Keno is a lottery game would be more a guess than a legal analysis,” former Attorney General Richard Blumenthal said at the time. But he did warn the governor that launching Keno could jeopardize the state’s arrangement with the tribes.


Concern For Casino Jobs Fuels Malloy's Pursuit Of Online Gambling
Rick Green, Hartford Courant
8:36 PM EST, January 9, 2012

The all-out sprint for more gambling is on, with Gov. Dannel P. Malloy signaling he doesn't want Connecticut left at the starting gate.

We've got more than enough state-sanctioned opportunities for people to lose money, but Malloy is probably right when he says that outlook is irrelevant now that the federal Department of Justice has given the OK to turning computers and mobile devices into virtual casinos. It's hideous, but that won't stop it from coming to your local Internet connection.

Within a year, online gambling, up to now both illegal and popular, is likely to be everywhere, or at least in the many states that will likely choose to legalize it. This could mean logging on for blackjack, poker or slot machine-style games, not to mention making a trip to the convenience store for a lottery ticket kind of like buying an actual newspaper.

The more interesting question now becomes how aggressive will the Malloy administration be when it comes to growing gambling and protecting what are two of the world's largest and most profitable casinos. Having a substantial online operation will be essential for casinos to be successful in the future, industry insiders say.

As gambling expands in neighboring states in coming years, Connecticut will likely lose thousands of its bricks-and-mortar casino patrons from Massachusetts and New York, while the gambling meccas of New Jersey and Nevada move quickly into online gambling.

Malloy said Connecticut has to be prepared to move fast if it wants to remain a leader – and to keep attracting hundreds of thousands of visitors who travel annually to gamble at Mohegan Sun and Foxwoods Resort casinos.

"Everything has to be on the table,'' Malloy told me Monday afternoon after he announced at a morning press conference that online gambling is inevitable. "We've got to defend these two [casinos]. You can't go to sleep on thousands of jobs connected to those two facilities. That's our strength … We have to build them up.

"We have a stake in protecting that industry," Malloy said of the casinos, which employ 20,000 people and turn over $350 million annually to the state.

Asked if he would propose having Connecticut's two tribal casinos run online gambling here, Malloy said "of course that's what I'm thinking."

That's also how the state's two tribes, which have exclusive slots and table games agreements with the state, see it. Tribal leaders say the gambling compacts give them rights to casino games in Connecticut, a debatable point.

In the gambling industry, casinos can't afford to miss a trend that could allow the competition to steal customers.

"Online is everything. The future is the Internet,'' said Bruce "Two Dogs" Bozsum, chair of the Mohegan Tribal Council, owner of Mohegan Sun Casino. He estimates that the domestic online gambling market could be as large as $20 billion. Bozsum, who traveled to Europe to research legal online gambling, said the tribe has been aggressively preparing for Internet gaming.

"I don't want to see Atlantic City or Las Vegas get a leg up on the rest of the world,'' he said.

It isn't merely those destinations. Gov. Andrew Cuomo wants casino gambling in New York City. Rhode Island and New Hampshire may join Massachusetts in allowing casino-style resorts. Florida, Iowa, Illinois and California are expected to act quickly on online gambling. Nevada has already approved online poker.

"This has existed for a long time. It's been unregulated and untaxed. Think about how much tax revenue has been lost,'' said Dennis Farrell, a gaming analyst with Wells Fargo Securities.

"We are in an unprecedented time. The states that move quickly are going to have that first mover advantage,'' Farrell said. "It's foolish not work with your largest employer."

Much remains up in the air, such as how states will block users from states that have outlawed online gambling or how minors can be prevented from playing poker on the Internet. Gambling compacts among states, which could allow for large, lucrative interstate online poker games, are already being discussed.

The states with casinos and aggressive lotteries are expected to be first in line. I still agree with opponents, such as Sen. John McKinney, the Republican leader in the Senate, who says more gambling "isn't good for the state."

But Malloy, who has made a name for himself saying Connecticut has dozed while other states have taken our jobs, has an ace card to play.

We might not need more gambling, but we can't afford to lose the 20,000 jobs that Mohegan Sun and Foxwoods provide.

Copyright © 2012, The Hartford Courant


For those who might want to know who will be in charge of gambling in CT
Ken Flatto to join Malloy administration
CT POST
Published 10:25 a.m., Tuesday, March 22, 2011

FAIRFIELD -- First Selectman Ken Flatto is joining the Malloy administration as the Executive Director of the Division of Special Revenue.

The division is responsible for managing various special revenues and for regulating legalized gaming in the State of Connecticut, including the Lottery and Foxwoods and Mohegan Sun.

"Ken will bring his 30 years of experience as a financial and accounting manager to this integral position," said Governor Malloy. "Although we are trying to maximize revenue that comes into the state, we always need to be mindful that it does not come at the expense of our state's citizens."

"I am truly looking forward to helping Governor Malloy and his administration account for additional revenue and improve services for Connecticut citizens," said Flatto. "I thank the Governor for his confidence and I intend to achieve solid results in this position."


McKinney: Online Gaming Far from Inevitable
Hartford Courant
By DANIELA ALTIMARI
5:34 PM EST, January 9, 2012

Senate Minority Leader John McKinney is taking issue with Gov. Dannel P. Malloy's assertion that online gambling is inevitable in Connecticut.

"I'm going to be looking at what we can do to prevent this from happening,'' McKinney said late this afternoon.

Earlier, Malloy suggested that a recent Department of Justice legal opinion opening the door for online gambling will lead states across the nation to jump aboard.

"We're going to have Internet gambling in Massachusetts, in Connecticut, in Rhode Island, in California, in Nevada and Mississippi and Alabama and I could go through all 50 states because the Internet is the Internet,'' Malloy said. "You don't turn off the Internet at any state's borders," Malloy said.

McKinney said Congress could step in and prevent that. "We are talking about a legal opinion from an attorney in the Department of Justice,'' he said. "Certainly Congress could say were going to change our laws and make sure that’s not happening. I would encourage our members of Congress to do that.''

But even if Congress doesn't act and other states begin offering online gambling options, that doesn't mean Connecticut can't regulate it, McKinney said. "It's our job to stand up for the health and safety of our citizens. We can take a position,'' he said.

McKinney is directing his legal staff to research what options that state to regulate the online gambling offerings of other states. He notes, for instance, that some states permit their residents to purchase alcohol online and some do not.
McKinney said Malloy was advocating for a more robust state lottery well before the Justice Department opinion was released in late December. "This is an easy way for the governor to get more revenue,'' he said.

He said he expects the Malloy administration to put together a bill legalizing online gambling in Connecticut for the upcoming legislative session and "I'm going to be looking at ways we can stop it,'' he said.

Copyright © 2012, The Hartford Courant

Gov. Malloy: State Can't Stop Online Gambling
Hartford Courant
By DANIELA ALTIMARI
10:41 AM EST, January 9, 2012

Gov. Dannel P. Malloy is bristling at the suggestion that he's bringing online gambling to the state.


"I think there is a level of misunderstanding about online gambling and its prospects in the state of Connecticut," Malloy said during a brief press conference at the legislative office building earlier this morning.

"It is quite clear that Internet gaming is coming to Connecticut. Period. It's coming,''the governor said.

Malloy's remarks, which came at the end of a press conference about storm preparedness, were in response to a U.S. Department of Justice ruling made public last month.

The ruling eases the way for online lottery sales and online gambling.

In light of the ruling, Malloy says, Internet gambling is coming, regardless of what he does or doesn't do. The state of New Jersey is already drafting legislation to usher in online gaming and other states are expected to follow.

"We're going to have Internet gambling in Massachusetts, in Connecticut, in Rhode Island, in California, in Nevada and Mississippi and Alabama and I could go through all 50 states because the Internet is the Internet. You don't turn off the Internet at any state's borders," Malloy said.

"If it's allowed in any state, it will appear in every state,'' he added.

Malloy noted the irony of him being pegged as an online gambling proponent. He says he lost the backing of some Democrats from Bridgeport because of his stance on a casino in that city in the mid-1990s.

"I'm not bringing under any circumstances online gaming to Connecticut,'' he added, "it's a national decision that has largely already been made.''
Congress has show no inclination to stop the Justice Department ruling, Malloy said."Once it happens it's universally available in the United States and we have to decide what to do about it....Try and shut down AOL, try and shut down any service. You can't do it."


SPECIAL SESSION - ACTION JANUARY 6, 2003

Las Vegas Nights Are Gone;  Legislature Repeals Law; Rowland Expected To Concur

January 7, 2003 - By RICK GREEN, Courant Staff Writer

Alarmed at the growing likelihood of more Indian casinos, state legislators repealed the state's Las Vegas nights law Monday - despite claims their dramatic action will do little to block the spread of gambling in Connecticut.

The vote came at a special session after lengthy delay tactics by urban legislators who support Indian casinos, who talked for hours Monday afternoon and into the
evening in a futile effort to derail the bill outlawing Las Vegas nights. Supporters of the repeal say it will allow the two existing Indian casinos to operate while outlawing future casinos operated by other tribes; opponents say Connecticut must prohibit all forms of gambling if it wants to stop casinos.

"If this is so meaningless, why all the rhetoric and all the effort to stop this repeal from happening?" said Jeff Benedict, president of the Connecticut Alliance Against
Casino Expansion. "It isn't meaningless."

In the state House, legislators voted 83-59 to repeal the law, with most legislators from cities voting against. In the Senate, which convened in special session after hours of House debate, the tally was 25-10 to repeal. The vote came a dozen years after the legislature rejected an attempt to repeal the Las Vegas nights law, which could have blocked the opening of Foxwoods Resort Casino.

"I voted to repeal 12 years ago. It's nice to have a change this time around," said state Rep. Jefferson Davis, D-Pomfret. "Nobody can predict what the courts are going to say. It is the only step we have available to us now."

But legal experts say the legislature's action - and Gov. John G. Rowland's promise to quickly sign the bill - means little unless Connecticut moves against Foxwoods Resort and Mohegan Sun casinos. These casinos, among the largest and most profitable in the world, bring in about $400 million annually to the state treasury under a deal in which 25 percent of slot machine revenue is turned over to Connecticut. The bill repealing Las Vegas nights exempts Foxwoods and Mohegan Sun, but prohibits casino-style gambling for everyone else, including Indian tribes and charitable groups, that have held fund-raisers allowed under the law.

"They can't single out a tribe. That just doesn't fly," said Robert Anderson, law professor at the University of Washington and director of the school's Native American Law Center. "If a state permits such gaming, then it's open to the tribes," said Anderson, counsel to the federal Interior Department under President Clinton.

The showdown over Las Vegas nights is the latest skirmish in an escalating battle over casino gambling. The state's top political leaders are fighting the recent federal government ruling recognizing the historical Eastern Pequot tribe, which plans to open a casino in southeastern Connecticut. The Trumbull-based Golden Hill Paugussetts, who hope to open a casino in Bridgeport, expect to learn within days whether they will receive preliminary recognition. The Schaghticoke Indians were denied recognition in a similar ruling last month by the federal Bureau of Indian Affairs, but will likely appeal. A Massachusetts tribe interested in opening a casino in northeastern Connecticut, the Nipmuc Nation, is appealing the denial of its recognition petition.

While top politicians are lining up with citizen and business groups opposing casinos and these tribal recognition petitions, legislators from struggling cities say casinos may be their last option in a time of rising property taxes, unemployment and municipal budget shortfalls.  "It's a chance at a new job and a ray of hope," said state Sen. Bill Finch, D-Bridgeport.

The Golden Hill Paugussetts have been aggressively courting Bridgeport and political leaders from the state's larger cities, arguing that a casino will benefit a struggling city. The tribe, supported by shopping mall developer Thomas Wilmot of Rochester, N.Y., says its opponents are racially motivated. Most members of the Paugussetts are African Americans who trace their ancestry to the historic Connecticut tribe.

"We are not playing the race card. We are saying this is what it appears to be," said James Griffin, president of the Connecticut State Conference of NAACP Branches. "The fact that [the Paugussetts] are black plays heavily into this whole issue."

Paugussett adviser Edward Bergin, the former mayor of Waterbury who lobbied legislators during the long afternoon and evening, dismissed the legislature's vote.

"This is just stupid. It is not going to have an effect on the tribes. It is not going to stop future casinos. It is going to affect nonprofits," Bergin said, referring to charitable groups that have used Las Vegas nights to raise money.

Opponents, led by state Reps. Reginald Beamon, D-Waterbury, and Kenneth Green, D-Hartford, also blasted their colleagues for changing the rules just as Connecticut tribes are winning recognition - and the right to negotiate to open casinos here.

"Are we changing the rules tonight? Absolutely. We are changing the rules every day," responded state Sen. William Nickerson, R-Greenwich. "If we didn't change the rules, we'd have Prohibition still in effect. We'd have segregation still in effect."



LAND CLAIMS TO BE REVIVED (Sunday CT POST)
"...Quiet Hawk said he would file land claims in both state and federal court on the 720,000 acres. In the federal cases, he would argue that the land was taken in violation of the Federal Non-Intercourse Act of 1790. In state court, he would argue the land was taken in violation of state and colonial law...

"In a claim based on a violation of the Non-Intercourse Act, a tribe must prove that it is an Indian tribe, the land is tribal land, the United States never consented to alienation of the subject land and the trust relationship between the tribe and the United States has not been terminated or abandoned..."



Wednesday, November 20, 2002 - 3:41:38 AM MST

GOP rolls dice against casinos;  Growing support voiced for repeal of state Las Vegas night legislation
                    By KEN DIXON

                    HARTFORD - Republican lawmakers from southwestern Connecticut
                    suburbs are vowing to repeal a state law in an attempt to stifle future
                    casinos in the state.

                    And Attorney General Richard Blumenthal has drafted tentative legislation
                    he believes would block new casinos while assuring that two existing Indian
                    gambling destinations continue operations.

                    Majority Democrats in the General Assembly said Tuesday that it might be
                    relatively easy to repeal the law allowing the state's two casinos in
                    southeastern Connecticut.

                    But the courts may ultimately decide the issue, especially if another state
                    Indian tribe wins recognition and wants to build a casino.

                    Several tribes, including the Golden Hill Paugussetts of Trumbull and
                    Colchester, are seeking federal recognition.

                    A dozen GOP lawmakers, with an eye toward the legislative session in
                    January, issued statements this week promising to introduce legislation
                    overturning the so-called Las-Vegas- nights law that allows gaming.

                    Among them are Rep. Lawrence G. Miller, R-Stratford; Rep. Cathy C.
                    Tymniak, Rep. Carl J. Dickman and Rep. John Stone, all R-Fairfield; and
                    Sen. Judith G. Freedman and Rep. Ken Bernhard, both R-Westport.

                    They are particularly concerned about the environmental effects a Bridgeport casino could
                    present if the Paugussetts win recognition.

                    "An area Indian tribe has made it perfectly clear that it intends to pursue development of a
                    casino in Bridgeport when it gains formal recognition by the federal government," Miller said,
                    adding that a Bridgeport casino would affect car and rail traffic.

                    "It will require the addition of many more trains to Metro- North to accommodate the thousands
                    of gamblers that would flock to the city from New York

                    at a greatly increased cost to the rail line and the taxpayers who subsidize it," Miller said. "It
                    will put additional strain on southwest Connecticut's inadequate electricity transmission lines,
                    hike maintenance costs on our highways and bridges, further degrade air quality, increase the
                    crime rate, reduce property values and adversely affect our quality of life."

                    Similar legislation died of neglect in the General Assembly last year, but this year, there's a
                    growing sense of bipartisan urgency to repeal the Vegas nights law that allows nonprofit
                    organizations to stage games of chance.

                    "It would be irresponsible if we didn't try to do something," Freedman said. "This is only a first
                    step toward addressing the very complex issue of gaming and casinos in Connecticut,"
                    Tymniak said.

                    Blumenthal said Tuesday he's certain that whatever the General Assembly does, the issue is
                    bound for court. "But I think the law will survive because there are ways to frame it that will
                    withstand any constitutional attack or any other argument," Blumenthal said. "The major
                    concern is that the state continues to receive the revenue it needs from the existing casinos."

                    The casinos in Ledyard and Montville, under a compact with the state, contribute 25 percent of
                    their slot-machine revenue to the state. Last year the total was about $400 million. The state's
                    current deficit in the $13.2 billion budget is projected at about $500 million.

                    "There is a certainly a way to write the law so the two existing casinos will exist," Blumenthal
                    said. "And there's no constitutional right on the part of a federally recognized tribe to conduct
                    gambling, so that the Legislature can write a law in the public interest that protects its citizens
                    from excessive gambling."

                    Rep. Michael P. Lawlor, D-East Haven, co-chairman of the Judiciary Committee, said he
                    believes that whatever emerges for floor votes in the House and Senate, will be a committee
                    bill, not one sponsored by any particular lawmakers.

                    "It seems like a legislative 'no brainer,' and it won't be the hardest issue, by a long shot, that is
                    facing the Legislature," Lawlor said.