State Poised To Launch Biggest Expansion Of Gambling In Decades, But Some See Trouble Ahead – Hartford Courant

Connecticut is poised to launch the biggest expansion in gambling in two decades: a trifecta of building a third casino, adding more off-track betting venues and laying the groundwork for online sports betting.

But those who advocate for problem and addicted gamblers and others who research the causes don't see the same kind of payoff as some Connecticut lawmakers eager to preserve state revenue and jobs.

They only see trouble ahead.

"What we've seen in many, many jurisdictions that get major introductions of gambling is a sharp uptick in problem gambling for one or two years and then a decline in prevalence," said Rachel A. Volberg, president of Gemini Research in Northhampton, Mass., who studies gambling. "But these people still remain at a greater risk, and that's more people in population with a potential problem with gambling."

The gaming expansion backed by the state legislature two weeks ago does not compare with the introduction of two southeastern Connecticut casinos Foxwoods Resort Casino and Mohegan Sun in the 1990s.

Even so, Volberg and others say the prospect of more access to gambling shouldn't be ignored, despite the already strong presence of the gaming in Connecticut. Hartford-area residents, for instance, can take a short drive to a casino in East Windsor rather than driving to the southeastern corner of the state.

The satellite casino in East Windsor is expected to add 2,000 slot machines and up to 150 table games.

"It's important for people not to be complacent because we've had casinos here and other forms of gambling for several decades," Marc N. Potenza, a professor of psychiatry and director of the Center of Excellence in Gambling Research at Yale University in New Haven.

Tecton Architects / HANDOUT

Gov. Dannel P. Malloy must still sign the legislation. And it could be months before ground is broken, and it could be another two years before the casino actually opens. Court challenges also loom. The Hartford-area gambling venue would be jointly run by the Mashantucket Pequot and Mohegan tribes that have built vast gambling empires just outside of New London.

The East Windsor casino is intended to blunt the competitive effects of a $950 million casino and entertainment complex under construction in Springfield. The state's 25-percent share of slot revenue has been eroding as casinos in neighboring states have challenged the dominance of Foxwoods and Mohegan Sun. Gaming industry jobs also are at risk, supporters of gambling expansion argue.

But to push through legislation, the addition of OTB sites and setting up a regulatory framework of future, but not yet legal, online sports betting were both critical to gathering enough votes for casino expansion.

The state now draws revenue from OTB operations and regulating sports betting would also bring funds to state coffers, a potent lure for a state that has come to depend on gaming revenue to help balance its budget.

Cloe Poisson / Hartford Courant

Tucked into the legislation creating the third casino, the Mashantucket Pequots and Mohegans have agreed to contribute $300,000 a year for research and treatment for problem gambling.

One gap in understanding gambling problems is knowing the extent of the trouble. No statistics exist for Connecticut because a comprehensive study has gone unfunded, said Marlene Warner, acting executive director at the Connecticut Council on Problem Gambling.

The council now has an annual budget of $800,000, compared with about $2.5 million for a similar council in Massachusetts, said Warner, who describes the council's budget as "woefully underfunded."

Warner said the bulk of the Connecticut council's funding, $600,000, is split evenly by Foxwoods and Mohegan Sun. Those funding levels date from when the casinos first opened, a time when the state's gambling landscape was far different from what it is today, Warner said.

The additional $300,000 for the third casino will help, but it will only go so far, Warner said.

Rep. Fred Wilms, R-Norwalk, pushed for more funding for treatment and research for problem gambling when casino expansion was considered by the House earlier this month, his voice joining others warning about the social costs of increased gaming.

Wilms proposed that the East Windsor casino deposit 5 percent of its gross gaming revenue annually into a chronic gamblers fund. The figure, he said, was drawn from statistics showing 2 percent of all adults nationwide are gambling addicts and another 3 percent are considered to be problem or chronic gamblers.

"My familiarity with this is unfortunately a family member of ours has been a gambling addict for the past 35 years," Wilms told his House colleagues. "And so, we have had to spend a lot of time in the addiction and recovery community."

Wilms said he was troubled about casino expansion when the website of state Department of Mental Health and Addiction Services notes that problem gambling is twice as high for individuals who live within 50 miles of a casino.

A Google search yielded 19 towns and cities where Gamblers Anonymous meetings for scheduled for the next week. Two of the towns, Middletown and Norwich, had two meetings.

"And it goes to show it's not somebody else's town, it's not some other place far away," Wilms said. "It's pretty close to where we live."

Wilm's amendment was ultimately defeated, and he voted against the multi-pronged gambling expansion.

Cloe Poisson / Hartford Courant

'Very Few' Become Problem Gamblers

Foxwoods and Mohegan Sun downplayed the affect of casino expansion, arguing that "very, very few people become problem gamers." But the state's original agreements with the tribes that gave the state a share of slot revenue also required the tribes to financially help problem gambling support programs.

Since the casinos opened in the 1990s, Foxwoods has contributed $5.5 million and Mohegan Sun, $6.7 million to the Connecticut Council on Problem Gambling.

Just to the north, in Massachusetts, the state is drawing direct links between casino expansion and problem gambling in a 21st-century environment where gambling is increasingly widespread and legal.

Legislation in 2011 allowed three commercial casinos in Massachusetts. One, Plainridge Park Casino, opened in 2015 and two others on are on the way, in Boston and Springfield.

Cloe Poisson / Hartford Courant

As part of the legislation, the casinos must pay up to a $5 million assessment, plus 5 percent of gross gaming revenues annually into a public health trust fund focused on problem gambling. Once all three casinos are open, those contributions could amount to $15-$20 million a year.

Warner, the acting director of Connecticut's problem gambling council who also serves as the executive director of the Massachusetts Council on Compulsive Gambling, said the Bay State will have the most aggressive approach to dealing with the problem gambling in the country.

Although the Connecticut problem gambling council operates on a shoestring budget, Warner did note good efforts by the state Department of Mental Health and Addiction Services.

Connecticut benefits from $2.5 million in Connecticut Lottery Corp funding for gambling treatment and prevention, Warner said. Those services are provided through the state mental health department, she said.

More OTBs

State regulated gambling in Connecticut dates back to 1972 when the lottery sold its first ticket. The introduction led to the opening of the first OTB parlors four years later.

Foxwoods and Mohegan Sun later brought glitz to the state's gambling scene. But there have been other, more recent pushes into gaming, smaller than what is envisioned by the recent legislation.

In April of last year, the state lottery launched Keno, which brought the casino-like game to all its 2,900 retail locations in the state, including some bars and restaurants.

And more gambling now may be on the horizon.

Sportech Venues Inc., the state only licensed OTB operator, has its eye on what many experts say is the inevitable legalization of state-regulated sports betting. Sports betting has long existed in a shadowy world, much the way alcohol production and consumption did during Prohibition.

New Jersey is now leading the charge against a federal ban, and Connecticut and other states have joined a growing list of states preparing for legalization. Gamblers have online access to sports betting tied to sites some of them outside the country where they are legal.

Cloe Poisson / Hartford Courant

In recent years, Sportech has worked to remake the image of OTB, once predominantly sought out by older men.

In 2014, Sportech invested nearly $5 million at Bradley Teletheater in Windsor Locks to bring a Bobby V's Restaurant & Sports Bar to the venue. Bobby V's is intended to also attract visitors who aren't necessarily interested in gambling and a wider range of ages and families.

Ted Taylor, Sportech's president, said he sees sports betting as a logical step for the company. The legislation on Malloy's desk would increase the potential number of OTB locations to 24. Sportech now operates 16 sites, including its newest in Stamford.

"We are already licensed and regulated to manage gaming, so we could implement sports betting rapidly under a new sports betting regulatory framework," Taylor said. "If this occurs, it will strengthen our position against increasing out-of-state competition and provide much needed jobs and revenue to Connecticut."

But Taylor said Sportech also is paying attention to problem gambling.

"Sportech wants to ensue that everyone is playing responsibly," Taylor said. "However, to combat problem gambling, Sportech contributed $180,000 last year to supportive programs."

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State Poised To Launch Biggest Expansion Of Gambling In Decades, But Some See Trouble Ahead - Hartford Courant