Gaming Report: Connecticut Becomes Seventh U.S. State to Legalize Online Poker & More

Gaming Report - Connecticut Online Poker, EGBA and Arizona sports betting
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  • Namita Ghosh June 3, 2021
  • 3 Minutes Read

Connecticut has joined the list of U.S. states to legalize online poker, casino, and sports betting! Governor Ned Lamont signed House Bill 6461 into law on May 27, formalizing the entry of online poker into Connecticut.

The European Gaming and Betting Association (EGBA), Europe’s leading gaming trade body, has filed a formal complaint with the European Commission (EC) against Germany’s proposal to impose a 5.30% tax on online poker and slots. According to EGBA, the tax will give a significant and unfair tax advantage to land-based casinos.

The U.S. Department of Interior (DOI) has approved Arizona’s amended tribal-state gaming compact, effectively making sports betting legal in Arizona. The Arizona Department of Gaming has set a September 9 launch date for commencing sports betting activities just in time before the 2021 NFL season takes off.

 

Online Poker, Casino & Sports Betting Now Legal in Connecticut After Governor Signs Bill

In a follow-up on our previous report on Connecticut Senate passing House Bill 6461, the legislation on May 27 crossed the final hurdle with Governor Ned Lamont, a known supporter of online gaming, signing the bill into law. This effectively makes Connecticut the seventh U.S. state to legalize online poker and sports betting and the sixth to legalize online casinos.

Following his signatory approval, Lamont, in an official public statement, said, “By signing this bill into law, Connecticut is now on the cusp of providing a modern, technologically advanced gaming experience that will be competitive with our neighboring states and positions us for success into the future. Today, we celebrate the result of months of hard work and dedication toward an agreement that is best for the residents of Connecticut and the respective tribal members.”

Connecticut Governor signs online gaming bill
Ned Lamont

 

Lamont tweeted the news.

Lawmakers in Connecticut have been exploring the possibility of bringing in regulated online gambling for well over a decade. The just-approved bill provides legal powers only to the Mashantucket Pequot and Mohegan tribes to offer online casino and poker games. They can also offer online sports wagering and land-based sportsbooks within the casinos they run. The Connecticut Lottery Corporation would be allowed to offer select online games.

There is still a lot of background work for the state before online gambling can take off on the ground. The lawmakers will have to now change the existing compact between the state and the two tribes, which in turn, has to be approved by the U.S. Department of Interior (DOI).

 

EGBA Lodges Complaint to EC Against Proposed Germany`s Online Poker & Slots Tax

The European Gaming and Betting Association (EGBA) has submitted a formal complaint to the European Commission against the German regulator Bundesrat’s proposal to fix a 5.30% tax on online poker and slots in Germany. The Brussels-based trade body represents six major European gaming operators, including Bet365, Betsson Group, Entain, Kindred Group, William Hill, and BOS.nu.

EGBA Secretary-General Maarten Haijer
EGBA Secretary-General Maarten Haijer

 

Secretary-General of the EGBA Maarten Haijer was quoted as saying: “We have previously made our concerns about the tax proposal known to the German authorities but to no avail and they will now need to justify the measure under EU law…the rate of the proposed tax is punitively high and will distort market competition and directly benefit Germany’s land-based gambling establishments over their online counterparts. We call on German politicians to rethink the proposed tax rate and bring it closer in line with the tax rate applied to online casino products in other EU countries.”

The EGBA has charged that the proposed tax grants a “substantial and unfair” tax advantage to the country’s land-based casinos. According to EGBA, the new 5.30% rollover tax is being imposed only on online poker and not live games, resulting in a tax rate that is four to five times more for online poker than land-based poker operators.

It has also pointed out that the new tax rates exceed the total gross gaming revenue (GGR) in some of Germany’s state-level jurisdictions and that land-based casinos would actually benefit from an estimated €290 Million tax advantage every year.

Germany’s new tax regime will go live on July 1 after receiving the approval of all the 16 German states.

 

Arizona Announces September 9 as Launch Date For Legal Sports Betting

Sports betting is now legal in Arizona! The U.S. Department of Interior (DOI) approved the state’s amended tribal-state gaming compact on Monday, opening doors for legal gambling and sports betting. Arizona Department of Gaming has announced that it is targeting a September 9 launch date for sports betting, in time for the 2021 NFL season.

Arizona Governor Doug Ducey
Doug Ducey

 

Reacting to the approval from DOI, Governor Doug Ducey, who had signed the legislation on April 15, said, “Gaming creates thousands of jobs for Arizonans, it generates tax revenue that benefits key areas of our communities, and it draws visitors to our state. The tribal-state gaming compact amendment, along with its associated legislation, was the culmination of a multi-year process and I was proud to work with all the stakeholders on this historic accomplishment. The tribal-state gaming compact and its associated legislation now is officially in effect — thank you to everyone who worked to make this happen!”

A total of 20 sports betting licenses will be up for the take in Arizona, half of which are reserved for tribal casinos. At the same time, the remaining 10 are available for professional sports groups.

The rules and regulations for sports betting will be publicly released on June 14 and be available for public comment for a week.

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