Hartford Business Journal

8 Hartford Business Journal • September 7, 2020 • www.HartfordBusiness.com ARE YOU LOOKING TO MAKE A MOVE FOR YOUR BUSINESS? Would you like to provide your staff with an amazing new offi ce in a prime location? Do you manage the following business type: 340 Hebron Avenue Glastonbury, CT 06033 www.340Hebron.com ü ACCOUNTING FIRM ü LAW FIRM ü INSURANCE AGENCY Gottfried & Somberg is expanding in Glastonbury. We invite your inquiries to join us in our new location in early 2021. Nearby amenities include shopping, fabulous restaurants, easy access to nearby highways — all just minutes from Downtown Hartford. • Design your own Class A offi ce space • New, healthy, clean offi ce space By Joe Cooper jcooper@hartfordbusiness.com I n just six months, the COVID- 19-induced economic reces- sion has pushed Connecticut's unemployment rate up to 15% as the state budget deficit is also projected to top $2.1 billion in the current fiscal year. Looking for ways to jumpstart Con- necticut's economy — which never fully recovered from the 2008 finan- cial crisis — and minimize the need to cut services or raise taxes, some state lawmakers and advocates say there will likely be a groundswell of support for more "sin tax" revenue in the 2021 session, which begins Jan. 19. That could pave the way for sports betting, internet gaming and recreational marijuana legalization, which have been hot-button issues that have garnered millions of dol- lars in lobbyist spending at the state Capitol in recent years. "There's going to be a big need for revenue," said Sen. Paul Formica, an East Lyme Republican and ranking member on the General Assembly's Appropriations Committee, which leads the state budget-writing pro- cess. "I'm sure there is going to be a big discussion on sin taxes in the long session starting in January." Connecticut's two tribal casinos, Mohegan Sun and Foxwoods Resort Casino, have complained that neigh- boring states with sports betting, internet gaming, iKeno and iLottery have a competitive advantage with those new offerings. Reporting a 20% dip in July slot revenues, Foxwoods last month said those states — in- cluding New York, New Jersey and Pennsylvania — since 2018 have col- lectively generated nearly $100 million in tax revenue from those games. Recreational marijuana advocates also say Connecticut needs to revisit legalizing cannabis for those 21 years and older because the new in- dustry could generate total revenue up to $180 million in the second full year of retail sales. Estimates offered by state law- makers and marijuana-legalization advocates project that recreational pot sales could raise up to $60 mil- lion in tax receipts in the first fiscal year of adoption. But revenue from sin taxes, such as those on liquor, cigarettes and gambling, are volatile and difficult to project, according to a 2019 analysis by Pew Charitable Trusts, which means they won't be a panacea to the state's looming budget woes. Other states hit hard by the pandemic are also looking to recre- ational pot legalization. Pennsylva- nia's governor, for example, recently called for legalizing pot as part of his state's economic recovery plan. Paired with broad public support, according to recent polling, propo- nents say Connecticut could get out in front of two promising industries. "Every little bit helps in a $20-billion budget with a $3-billion deficit," said Formica, a restaurant owner whose 20th Senatorial district has a large population of casino workers. "We can learn from other states, both the good and the bad they have experienced." Uncertain rights to sports betting, online gaming While most lawmakers are well- versed on the pros and cons of legalizing sports betting, concerns remain on how online games might complicate passage of a comprehen- sive gambling expansion. Additionally, the casinos and Gov. Ned Lamont's administration have been at odds over sports betting, with the tribes arguing that their exclusive rights to casino games in Connecticut include sports betting if permitted. But off-track betting operators, the Connecticut Lottery Corp. and others are also vying to participate in the new potential offerings. The governor's office has ex- pressed interest in a bill that would legalize only sports betting, but with terms opposed by the tribal leaders, the Connecticut Mirror reported in early March. Sportech Venues Inc., which holds the exclusive license to offer off-track betting in Con- Sin Tax Allure As pandemic slams CT's economy, sports betting, recreational marijuana could gain momentum in 2021 A Supreme Court ruling in May 2018 cleared the way for states to legalize sports betting. However, Connecticut has been left on the sidelines while other nearby states have permitted and started regulating the industry. PHOTO | FLICKR/MARIT & TOOMAS HINNOSAAR

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