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OLR Bill Analysis
sSB 146
AN ACT CONCERNING REVENUE FROM GAMING ACTIVITIES,
GRANTS IN LIEU OF TAXES FOR TRIBAL LANDS AND SALE OF
ALCOHOL BY CASINO PERMITTEES.
SUMMARY
This bill makes several changes related to existing and prospective
gaming in Connecticut. Principally, it expands (1) grants to
municipalities from the Mashantucket Pequot and Mohegan Fund and
(2) funding for the state’s debt-free community college program. These
expansions are contingent on the legalization of and revenue
generated from, respectively, (1) sports wagering and online casino
gaming outside of Indian lands and (2) online lottery draw games. The
bill itself does not legalize those games but conditions its revenue
provisions on certain executive actions and other legislation taking
effect.
Additionally, the bill increases the payment in lieu of taxes (PILOT)
reimbursement rate for certain tribal land, increases the amount of
money in the chronic gamblers treatment rehabilitation account, and
expands the hours of casino alcohol sales. It also makes other minor,
technical, and conforming changes.
EFFECTIVE DATE: July 1, 2021, except the repealer section and
provisions on the chronic gamblers treatment rehabilitation account
and hours of casino alcohol sales are effective upon passage.
§§ 1-5 & 14-16 — MUNICIPAL GRANTS AND TOURISM FUNDING
The bill makes several changes to existing state accounts, including
renaming the Tourism Fund as the Arts, Culture and Tourism Fund. It
also prospectively allocates funds received from sports wagering or
online casino gaming outside of tribal lands if they are authorized in
certain ways. Specifically, they must be authorized by (1) amendments
to the existing Mashantucket Pequot procedures, Mohegan compact, 2021SB-00146-R000395-BA.DOCX
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and related memorandums of understanding (MOUs) with each tribe;
new compacts with the tribes; or both; and (2) the general statutes or a
public or special act.
The bill requires funds received from authorized sports wagering
and online casino gaming operators to be deposited in the General
Fund. Then, beginning FY 24 and each fiscal year after, transfers must
be made annually from those deposited funds as follows:
1. $20 million to the statewide tourism marketing account;
2. $10 million to the Arts, Culture and Tourism fund; and
3. a variable amount to the Mashantucket Pequot and Mohegan
Fund.
Under current law, the Mashantucket Pequot and Mohegan Fund
receives transfers from the General Fund each fiscal year, based on
deposits from tribal casino video facsimile revenue that the state
receives pursuant to MOUs with each tribe. The transfers must equal
the amount appropriated for specific grants to municipalities. Money
from the fund must then be distributed to municipalities according to
various statutory formulas or amounts and grant criteria.
The bill sunsets the current transfer and distribution methodologies
associated with the Mashantucket Pequot and Mohegan Fund as of
June 30, 2023. Beginning FY 24 and each of the following fiscal years,
the bill requires that $139.38 million be transferred from the General
Fund to the Mashantucket Pequot and Mohegan Fund based on the
revenues from (1) sports wagering and online casino gaming and (2)
tribal casino video facsimiles. Under the bill, this transfer amount may
only be reduced by (1) an emergency certification from the governor
requiring a reduction and (2) a vote of at least two-thirds of each
General Assembly chamber approving the reduction.
Also beginning FY 24 and each fiscal year after, the bill allocates a
total of $139.38 million to municipalities and specifies the grant
amounts payable to each one. Under existing law and unchanged by
the bill, the Office of Policy and Management must distribute the funds 2021SB-00146-R000395-BA.DOCX
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according to those specified amounts, reducing them proportionally if
the grant total exceeds the amount of funds available for a year. By
law, the amounts are paid in three installments on or before January 1,
April 1, and June 30.
§ 6 — TRIBAL LANDS PILOT
The bill increases the statutory PILOT reimbursement rate, from
45% to 100%, of the property taxes that would have been paid for (1)
Mashantucket Pequot reservation land designated within the 1983
settlement boundary and taken into trust by the federal government
before June 8, 1999, and (2) Mohegan reservation land taken into trust
by the federal government. By law, the assessed value must be of the
land only and exclude any structures, buildings, or other
improvements on the land.
§§ 7-10 — DEBT-FREE COMMUNITY COLLEGE
The 2019 state budget implementer established a debt-free
community college program for certain Connecticut high school
graduates who enroll as first-time, full-time regional community-
technical college students (PA 19-117, § 362). The bill establishes a
“debt-free community college account” as a separate, nonlapsing
account within the General Fund.
Relatedly, the bill prospectively directs funds received from an
online lottery program the Connecticut Lottery Corporation (CLC)
establishes if it is authorized by (1) amendments to the existing
Mashantucket Pequot procedures, Mohegan compact, and related
MOUs with each tribe; new compacts with the tribes; or both; and (2)
the general statutes or a public or special act. The bill contemplates
that under the program, CLC would sell lottery tickets for lottery draw
games through CLC’s website, an online service, or a mobile
application.
Under the bill, all revenue from the online lottery program must be
deposited into a fund CLC must establish to specifically collect that
revenue, separate from all other CLC revenues. The bill requires the
CLC president, on a weekly basis, to estimate and certify to the state 2021SB-00146-R000395-BA.DOCX
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treasurer the portion of the balance in this fund that exceeds CLC’s
current needs for paying prizes and current operating expenses and
funding approved CLC reserves. Under the bill, CLC must transfer the
certified amount to the debt-free community college account after
being notified that the state treasurer received the certification.
The bill requires the Board of Regents for Higher Education (BOR)
to spend the money in the debt-free community college account on the
debt-free community college program. Additionally, within 30 days
after the online lottery program starts, and on each January 1
thereafter, the CLC president must estimate and report to BOR the
anticipated amount to be deposited in the account or the anticipated
net revenue during the current and next fiscal year.
§ 11 — CHRONIC GAMBLERS TRE ATMENT REHABILITATIO N
ACCOUNT
Beginning FY 22 and each fiscal year after, the bill doubles, from
$2.3 million to $4.6 million, the amount that CLC must transfer to the
chronic gamblers treatment rehabilitation account from revenue it
received from selling lottery tickets. By law, the account supports
prevention, treatment, and rehabilitation services for chronic gamblers
(CGS § 17a-713).
§§ 12 & 13 — CASINO ALCOHOL SALES
The bill prohibits casino permittees from selling alcoholic liquor on
Christmas unless food is also available at the same time. It also allows
them to sell alcohol until 4:00 a.m. during weekdays and weekends,
instead of 1:00 a.m. and 2:00 a.m. respectively under current law, if
they are selling to a customer who is staying on casino property.
Additionally, the bill requires casino permittees to maintain a
written alcohol service policy that provides for the safe sale and
dispensing of alcohol under its permit. Under the bill, each casino
permittee must review its policy at least once each year.
§ 17 — REPEALER
The bill repeals provisions requiring (1) the Department of
Consumer Protection (DCP) to adopt regulations to regulate wagering 2021SB-00146-R000395-BA.DOCX
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on sporting events to the extent permitted by state and federal law
(CGS § 12-565a) and (2) MMCT Venture, LLC to provide a $30 million
interest-free advance to the state by June 30, 2019 (CGS § 12-578j).
(MMCT is a company jointly owned and operated by the
Mashantucket Pequot and Mohegan tribes and authorized to operate
an off-reservation commercial casino in East Windsor.) To date, DCP
has not adopted the regulations and MMCT has not submitted the
advance.
BACKGROUND
Related Bills
sHB 6451, reported favorably by the Public Safety and Security
Committee, among other things, establishes or modifies current
frameworks for legalizing and regulating (1) online sports wagering;
(2) retail sports wagering (i.e., wagering while physically present at a
facility); (3) online casino gaming; (4) online keno; (5) online lottery
draw games other than keno; and (6) fantasy contests.
sSB 570, reported favorably by the Public Safety and Security
Committee, contains many of the same provisions in this bill, sSB 146,
and sHB 6451 but also (1) authorizes a request for proposals to
establish a casino gaming facility in Bridgeport; (2) requires that online
casino gaming or sports wagering equipment must be in a facility
located in Bridgeport; and (3) prevents the tribes from using a third-
party vendor to operate their skins for online sports wagering and
casino gaming unless the legislature approves the contract.
sHB 6512, reported favorably by the Public Safety and Security
Committee, regulates sports wagering contingent upon it becoming
legal in the state. The bill includes provisions that restrict who is
permitted to wager on sports and place a number of requirements on
sports wagering operators.
COMMITTEE ACTION
Public Safety and Security Committee
Joint Favorable Substitute
Yea 21 Nay 3 (03/24/2021) 2021SB-00146-R000395-BA.DOCX
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