
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.