Hartford Business Journal

www.HartfordBusiness.com • September 7, 2020 • Hartford Business Journal 9 necticut, recently penned an op-ed that blamed the tribes for blocking sports betting legislation. George Henningsen, chair of the Mashantucket Pequot Gaming Commission, refuted those claims, stating that the tribes are willing to consider opening sports betting to other operators, but that they own exclusive rights to it. After all, the tribes argue they have made nearly $9 billion in gaming payments to the state's budget since 1993. Meanwhile, Mohegan and Fox- woods have teamed to jointly build a satellite casino in East Windsor but that project has been stalled by legal and zoning issues, and the city of Bridgeport has lobbied for its own casino, which the tribes and MGM have previously expressed interest in. Rep. Matt Ritter (D-Hartford) says negotiations surrounding gambling ex- pansion have not progressed in his four- plus years as House majority leader. "I'm kind of at my wits end with everything going on with our casi- nos," said Ritter, who would like to see sports betting and online gaming offered in Connecticut. "We need to move into the 21st century. The fact that we do not have sports betting is beyond silly." Ritter said he sees a path for both the tribes and other op- erators to have a piece of sports betting and online gaming, with the casinos taking home the largest share of the new revenue stream. "I fully support it, and at some point I'm not go- ing to negotiate behind closed doors for months on end," he said. "I will just put it on the floor, people can vote any way they want. At this point, I'm sick of having backdoor conversations." Officials from both Mohegan and Foxwoods did not respond to requests for comment. Connecticut Lottery Corp. CEO Greg Smith said he was optimistic that the governor's budget bill last session included internet lottery revenues, and that the virtual offering seemed to be gaining mo- mentum among state lawmakers before the pan- demic cut short the 2020 legisla- tive session. Smith says the Rocky Hill-based Lottery, which has recorded a 15% bump in sales over the last three months, would be the best handler of sports betting because it would return all profits to the state. The Lottery estimates that it would return to the state $45 million from iLottery sales in the first five years of operation, and $30 million in sports betting revenue after the inaugural debut. Both revenue estimates would grow over time, he said. "The idea of getting into a seri- ous conversation and figuring out what's possible, in my opinion, is the best approach," Smith said. Recreational pot facing many hurdles Similar to sports betting, there's an underground market for marijuana that has no public health or safety standards. Estimates show that roughly 12% of Connecticut's 3.5 mil- lion residents use the federally illegal drug in some way, advocates say. Adam Wood, a co-director of the Connecticut Coalition to Regulate Marijuana, a three-year-old chapter of the nationwide Marijuana Policy Project, said the state should be eager to regulate the sale of marijuana for both safety and economic reasons. "The fact that this regulation would not only bring public health and public safety benefits, but could provide jobs and revenue in a time when the state needs it the most, certainly makes the issue increasingly relevant," said Wood. But regulating marijuana is a complicated task. Just ask Mas- sachusetts and Illinois, which have both run into many regu- latory and supply challenges since adopting recre- ational cannabis use in recent years. Questions fac- ing its passage in Connecticut include: How would recreational sales be regulated?; How would produc- ers meet demand?; How would retail sales be taxed?; How would the state provide opportunities for minority- owned businesses?; Would the state expunge prior cannabis convictions? An official from Fine Fettle Dispensary, which has locations in Newington, Willimantic and Massa- chusetts, says the state has a strong medical marijuana program, but it's not large enough to supply products for a recreational market. In fact, no state has been prepared in the shift from medical to recreational pot use, the company says. "We need to be prepared in terms of supply to get all of the revenue they are hoping for, and be the premium pro- gram in the area, and keep prices low," a company spokesman said. "Those questions are really important." Connecticut lobbyist spending in 2019-2020 Casino industry Amount Mashantucket Pequot Tribal Nation $161,300 Mohegan Tribal Gaming Authority $174,650 Marijuana industry Curaleaf LLC $109,790 Connecticut Pharmaceutical Solutions Inc. $50,529 Sports industry National Football League (NFL) $149,180 Major League Baseball (MLB) $124,564 National Basketball Association (NBA) $138,207 Source: Connecticut Office of State Ethics There are four medical marijuana growers in Connecticut that sell products to 17 dispensary facilities. CTPharma and other medical growers are expanding in Connecticut. But some say the medical industry is not ready to supply products for a larger recreational market. PHOTO | CTPHARMA PHOTO | CTPHARMA bankatpeoples.com/simple Member FDIC/Member DIF Simple Enough. At PeoplesBank, we make everyday banking as simple as it possibly can be. Real. Simple. Banking.

• Cover