Connecticut’s attorney general has warned state legislators that their plans to tax daily fantasy sports contests could violate gaming compacts with the state’s tribal casino operators.
On Monday, Connecticut AG George Jepsen (pictured) responded to a request from state Senate leaders for a formal legal opinion on the state’s plan to slap an 8.75% tax on DFS contest entry fees.
The state’s compacts restrict slot operations to the two tribes that operate the Foxwoods Resorts Casino and Mohegan Sun gaming venues. The compacts’ broad definition of ‘slots’ includes the category of “video facsimile machines.” The compacts also restrict the state from authorizing “other commercial casino games” outside of the two tribal venues.
Given that DFS contests are conducted via computer and mobile devices, Jensen’s legal opinion says it’s entirely possible that a court could conclude that the contests fall under the category of “video facsimile machines.”