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Box 330, Congers, NY 10920-9894 www.copyright.com REPORTER'S NOTEBOOK OTB industry looks to bolster revenues The House's passage of a bill authorizing a third Connecticut casino adds an additional level of uncertainty to the future of the state's off- track betting (OTB) operator, Sportech Venues. Last fiscal year, Sportech raked in $164 million in revenues, on par from a year earlier but down from $255 million in 2005, accord- ing to figures provided by the Department of Consumer Protection. Expanded casino gaming is a potential threat to Sportech, which once hoped lawmak- ers might designate one of its dog and horse- racing betting parlors as the third casino site. It's unclear whether Sportech, which has invested millions of dollars in new and reno- vated facilities, would have a relationship with a third casino jointly operated by the tribes that own Foxwoods and Mohegan Sun. Sportech has provided management services for Mohegan's racebook for years. Besides expanded gaming and entertain- ment options, OTB revenues face a variety of other headwinds. For example, Connecticut residents can bet on races through a variety of offshore websites, which skirt the law. The industry is also up against an overall decline in interest from gamblers. A Plainfield greyhound-racing track that drew more than 1 million spectators in the late 1970s closed in 2005 after attendance dipped to 90,000. In addition, many states have banned greyhound racing, citing concerns over cru- elty or inhumane treatment of dogs. While an East Windsor casino could poten- tially skim revenue from Sportech's nearby facilities in Windsor Locks and Hartford, lawmakers also threw the company a bone. The House narrowly passed an amend- ment to the casino expansion bill that would increase the number of OTB facilities in the state from 18 to 24. Sportech currently operates 15 facilities, with another slated to open this month in Stamford. The company, which pays approxi- mately 2 percent of its revenues to the state, expected to hit the 18-facility cap as soon as year's end. The House amend- ment also instructs the Department of Consumer Protec- tion to create state regulations for sports betting, which, if ulti- mately enacted, could be a boon for Sportech. – Matt Pilon Sikorsky a hit with CT manufacturers, suppliers Congressman Joe Courtney likened it to "Sikorsky 101.'' More than 300 Connecticut precision man- ufacturers and subcontractors — including many from Greater Hartford — trekked to a Norwich hotel last week for a day-long supply-chain net- working session with Stratford civilian- military rotary-craft builder Sikorsky Air- craft. Dozens more who wanted in were turned away because the venue was too small and demand was so intense. Attendees were drawn to the event, say Courtney and Anne Evans, director of the federal Connecticut Export Assistance Cen- ter in Middletown, by the prospect of sharing in a sliver of the billions of dollars allocated by the federal government to buy rotarycraft for the Navy and Marines. The Marines have ordered 200 of Sikor- sky's CH-53 King Stallion helicopters for around $80 million each, Courtney said. Most of that production will be done in-state, offer- ing Connecticut suppliers a chance to con- tribute various parts and services. President Donald Trump's proposed 2018 defense budget increases allocations for defense spending, Courtney said, which includes not only Sikorsky helicopters, but Pratt & Whitney engines for the F-35 Joint Strike Fighter and the Air Force's new fleet of aerial refueling tankers. The current and projected defense budget also includes billions to build more subma- rines at Electric Boat's shipyards in Groton, and Bath, Maine. "It was folks from all over the state'' who attended the networking session, said Court- ney, the Second District Democrat and rank- ing member of the Seapower and Projection Forces Subcommittee who, with the Con- necticut Export Assistance Center, facilitat- ed the event. Accountants-consultants Cohn Reznick was a sponsor. This was the first such event since defense giant Lockheed Martin acquired Sikorsky from United Tech- nologies Corp. for $9 billion in late 2015. It also was the first since Connecticut stepped in late last year with $220 million in incentives to retain Sikorsky and around 8,000 jobs in the state through at least 2023. Sikorsky did not host but was invited as a keynote speak- er, said spokesman Paul Jackson. "Our Connecticut supply chain current- ly consists of hundreds of companies, so we're very aware of the high-quality manufacturing and other expertise available in this state,'' Jackson said via email. "Still, it is encouraging to know so many other potential suppliers are interested in possibly working with Sikorsky." One is Atlas Stamping, a 30-year-old fam- ily enterprise in West Hartford that is a long- time Pratt & Whitney supplier. Atlas, which attended the networking session, could not pass on the opportunity to diversify into the Sikorsky and Lockheed supply chain, said Richard Myers, Atlas' marketing-sales devel- opment manager. "We see growth opportunities in the mar- ketplace," Myers said. – Gregory Seay Congressman Joe Courtney Sikorsky's CH-53K King Stallion helicopter (shown above) is produced in Connecticut. An outdoor shot of the Winners off-track betting parlor in Hartford, owned by Sportech. P H O T O | C O N T R I B U T E D P H O T O | H B J F I L E Sportech Off-Track Betting Revenues in Connecticut * 2 0 1 7 I N C L U D E S F I R S T 7 M O N T H S ( J U L Y T O J A N . ) S O U R C E : S T A T E D E P A R T M E N T O F C O N S U M E R P R O T E C T I O N $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* OTB Revenues

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