Historic Settlement In Connecticut Regarding Casino Free Play

It seems as though the two Indian tribes that run Connecticut casinos seem to be doing a lot of things together these days. On Wednesday, an agreement was announced in which the tribes will have to pay $25 million to the state for promotions they were running.

Foxwoods Resort Casino, owned by the Mashantucket Pequot Tribal Nation, and the Mohegan Sun, owned by the Mohegan Tribe, had been running similar promotions that were allowing patrons to play slot games for free. The promotions were giving out coupons for free slot play, and even though it was coming out of the casinos pocket, the state wanted a piece of the action.

"It is used to gamble as a substitute for actual cash," said Attorney general Richard Blumenthal, of the free play, "It is, in effect, money that people would otherwise spend out of their own pockets, so, in effect, they are wagering and it is effectively revenue."

The two tribes have agreed in their gambling compact with the state that they would pay twenty-five percent of their revenues to the state. The fact that free play is considered revenue in Connecticut could change the way other states look at the same issue.

Almost all casinos around the country give out free play to their regular customers. It is a way for the casinos to bring the high roller customers into the casino, and make them feel like they are getting something back.

The free play bonuses in Connecticut account for about $6 million combined a month between the two casinos. Around the country, the figures are similar, and now a precedent may have been set that the free play counts as actual revenue for the casinos.

"Certainly, the fact that these two tribes settled with the state shows that the free play is essential for raising revenue at casinos," said observer Frank Gully, "Now we will just have to see if other states follow the lead of Connecticut and go after casinos in their states for this free play revenue."

August 27, 2009
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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