Mohegan backs Connecticut crackdown on prediction markets threatening tribal gaming exclusivity

The Mohegan Tribal Gaming Authority is backing Connecticut’s efforts to cease prediction market operators from providing what tribal officers name unlawful sports activities betting that violates the tribe’s unique gaming rights within the state.

During a first-quarter earnings name Thursday, Mohegan Chief Financial Officer Ari Glazer stated the tribe is working with state officers to halt unlicensed playing on platforms that permit customers to wager on sports activities outcomes.

“I think the two Connecticut-based Native American tribes have exclusivity on all forms of gaming in Connecticut, and we are actively working with all of the Connecticut constituents and regulators and government to ensure that that is the case,” Glazer stated.

The battle facilities on whether or not prediction-market platforms are successfully providing sports activities betting whereas sidestepping the compacts, licensing necessities and regulatory oversight that govern tribal gaming below federal legislation, in accordance with a latest Brookings Institution report by authorized scholar Patrice Kunesh.

Connecticut’s Department of Consumer Protection Gaming Division despatched cease-and-desist letters in December to prediction market platforms KalshiEX LLC, Robinhood Derivatives LLC and Crypto.com, ordering them to cease providing unlawful sports activities wagers within the state, in accordance with the Hartford Business Journal.

The platforms permit customers to purchase and promote contracts primarily based on whether or not particular occasions will happen, equivalent to which workforce will win a recreation, however characterize the exercise as prediction markets somewhat than sports activities betting.

“Sports related event contracts are gambling, plain and simple,” Glazer stated through the name. “I think there is no debate.”

He stated Connecticut is pursuing authorized motion towards the platforms, and the tribe is aligned with the state’s place.

“The state of Connecticut has sent cease and desist letters to the predictive event contract operators,” Glazer stated. “There was a hearing as recently as yesterday as the state of Connecticut. So today, the state is pursuing legal action, and of course, we’re supportive of that.”

Sixteen tribes and the Indian Gaming Association filed an amicus transient in Connecticut supporting state regulators who ordered the platforms to halt unlicensed on-line playing, in accordance with Decrypt.

Decrypt stories that the tribes stated Kalshi has acted as if “Congress gave it permission to enter Indian lands and siphon gaming revenues away from tribes over such tribes’ objections.”

Gov. Ned Lamont proposed laws that may prohibit prediction market platforms from permitting use by or promoting to individuals below 21, with civil penalties as much as $50,000 for violations. The invoice additionally requires a examine by the Department of Consumer Protection, in session with the lawyer common and Connecticut’s two federally acknowledged tribes, on the consequences of prediction markets on downside playing and income to licensed gaming operators.

Glazer acknowledged it stays too early to find out the total influence of prediction markets on tribal gaming operations however stated the platforms elevate regulatory issues.

“We follow the prediction markets very closely,” he stated. “I think we’re very aligned with others in the gaming industry that we’re concerned about regulation and having fully regulated gaming products, we think that serves the consumers best interest.”

The issues emerged as Mohegan reported first-quarter internet earnings of $108.5 million for the quarter ending Dec. 31, in contrast with a internet lack of $85.9 million a 12 months earlier. However, the revenue was pushed virtually totally by a $102 million non-cash accounting acquire associated to discontinued operations in South Korea.

Mohegan Digital, the corporate’s on-line gaming and sports activities betting division, reported a 35.9% income enhance to a quarterly report of $72.2 million. Connecticut operations have been the first progress driver, with gross gaming income rising 33.5%.

Tribes have pursued digital gaming with uneven outcomes, in accordance with prior Tribal Business News reporting. In Florida, tribal cell betting has confronted a number of authorized challenges. Elsewhere, tribes have launched tightly regulated cell choices together with a geofenced digital sportsbook operated by Navajo Nation Gaming Enterprises.

Former Mohegan CEO Ray Pineault stepped down Dec. 28 after almost 25 years with the tribe. The Mohegan Management Board is overseeing operations through the management transition, however a brand new CEO has not been named.

About The Author

Brian Edwards is affiliate writer and affiliate editor of Tribal Business News and Native News Online. He is a longtime writer, editor, enterprise reporter and serial entrepreneur.

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