Connecticut Issues a Stop Order to Non-State Online Gambling Platforms
Connecticut has been cracking down on sites offering horse race betting to state residents prior to the Belmont Stakes in New York, it's been revealed. Attorney General George Jepsen and William Rubenstein from the Department of Consumer Protection sent cease and desist letters to 28 websites, most of which have legal betting licenses in their own states but not in Connecticut.
Amid the hype around California Chrome's potential Triple Crown win, which fortunately didn't pan out, it seems that sports betting websites didn't want to miss out on any of the action, legal or not.
The Department of Consumer Protection targeted sites from 10 different US states, including Kentucky, New York, North Dakota, and Pennsylvania. Some of the sites were owned by racing tracks, such as The Red Mile in Lexington, KY.
Stop and Desist
The letters, sent on May 20th before the race weekend, stated that offering bets to Connecticut residents violated state law and demanded operators to stop marketing their products to the state's citizens.
"You must immediately cease and desist from accepting wagers placed from within the State of Connecticut," the letters read.
Timing was essential to protect the revenues of Sportech Plc, as well as Connecticut's off-track betting parlors, as the Triple Crown-related excitement led to increased betting.
Sportech operates online and phone wagering services, as well as 15 off-track betting branches and sports bars in Connecticut under the brand Winners, and its website, MyWinners.com, is the only site legally permitted to offer parimutuel horse racing betting. The state collects a 3.5% tax from this operation, making it a crucial target for authorities.
In the past three years, the Belmont Stakes has generated between $2.4 million and $2.6 million in bets at the state's off-track betting parlors, according to Sportech. However, in 2013, when online wagering was allowed, the site generated $8k in revenue.
"No other site is regulated here or pays the tax that the state should be receiving," said Sportech in a press release. "Our operations are closely monitored by the Department of Consumer Protection, ensuring the highest standards of player protection for local residents."
"What's happening with the Internet?"
"It's an issue that has come on our radar screen," said Rubenstein. "About a year or so ago, we approved our licensee to do Internet. And then we started thinking, 'Well, what's going on with the Internet?' It took us some time to make sure we were accurate in our analysis and to identify all the players."
Rubenstein noted that some of the addressed operators agreed to comply, while others are seeking more information about Connecticut law to weigh their options.
In Connecticut, MyWinners is the only site authorised to provide online gambling. However, elsewhere in the state, Foxwoods Resort Casino and Mohegan Sun, two tribal-owned casinos, hope for a law change, having launched play-for-fun casino sites. They wish to be prepared should Internet gambling become legal in Connecticut.
Yet, it appears that such a change may not happen anytime soon, but these sites will serve as valuable marketing and customer acquisition tools.
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