State legislature’s public hearing told that there is significant potential in Connecticut joining other US states in legalising online gambling
In Connecticut, a Public Safety and Security Committee hearing to consider gaming expansion possibilities Thursday was informed in a Foxwoods Resort tribal land casino submission that online gambling offers significant potential and represents the “strongest opportunity for the state.”
Foxwoods owners, the Mashantucket Pequot Tribal Nation, have some experience in online activity, as has neighbouring rivals the Mohegan Tribe, which operates a branded online casino in New Jersey, as well.
Seth Young, Foxwoods’ executive director of online gaming opined: “As we see it, the strongest opportunity for the state is in legalizing state-wide iGaming, another activity that is currently operating for Connecticut residents in the black market today.”
The casino executive highlighted the advantages to the state of potential tax revenue and jobs, illustrating his points with the continuing success achieved in New Jersey and predicting that the revenue opportunity for iGaming in Connecticut could be greater than the revenue opportunity for sports gambling.
“Based on our estimates coupled with a pragmatic tax rate, over the course of five years Connecticut stands to collect roughly $87 million in tax revenue from iGaming, at a rate starting at roughly $14.25 million in Year One, escalating to roughly $20 million in Year Five,” he said, adding that 3,374 full-time equivalent jobs were created in New Jersey directly or indirectly since the introduction of iGaming in 2013.
Young discussed the false threat of cannibalisation, producing empirical evidence and statistics showing that online gambling complements rather than cannibalises land revenues.
“iGaming has contributed to Atlantic City’s stabilization and turnaround in a market with new casinos right over the border in Philadelphia and other neighbouring states, in a similar destination-style market as we have here in Connecticut,” he said.
“With this in mind, we submit that iGaming is a valuable asset that can be leveraged, with the potential ancillary benefit of increasing slot revenue to the state.”
The full Foxwoods submission has been uploaded here: https://www.legalsportsreport.com/wp-content/uploads/2018/03/Written-Testimony-03.15.18-Foxwoods-Resort-Casino-Seth-Young.pdf
