Aug. 27, 2009--The state's two casinos Wednesday offered a little good news for Connecticut, which is facing a two-year, $8.5 billion budget deficit.

The two tribes that operate Foxwoods Resort Casino and Mohegan Sun have agreed to pay $25 million in slot revenue to settle a disagreement about a promotional game that allowed patrons to play slot machines for free.

The settlements resolve a state lawsuit against the Mashantucket Pequot Tribe that had sought slot revenue that was collected through the promotional program known as "Free Play," in which Foxwoods provided certain patrons coupons or electronic credits permitting them to play slot machines free for up to the value of the credits.

The Mohegan Tribe had a similar promotional program called "eBonus."

Legislative approval is still needed because the size of the settlement is more than $2.5 million. Lawmakers are expected to vote on the settlement when they are in session today, and Gov. M. Jodi Rell has backed the agreement.

The settlement includes future payments to the state because both casinos are still offering the promotional game.

Attorney General Richard Blumenthal sued the Mashantucket Pequots in December 2006 over the promotion, which began three months earlier. The state didn't sue the Mohegans, but the tribe agreed to abide by the terms of any settlement.

The state contended that the coupons or credits constituted a wager and should be calculated in the tribe's monthly contributions to the state. Those contributions represent 25 percent of the gross operating revenues from the operation of slot machines.

"This agreement is huge and historic -- a tremendous precedent resolving disputed slot revenue significant to the state's solvency and symbolizing our shared stake in financial success," Blumenthal said.

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