Foxwood Development Company is well known for the Foxwoods Resort Casino in Mashantucket, Connecticut, which is one of the largest casinos in the world. Currently, Foxwood is planning a new internet gambling site in partnership with Goodson Gaming, which produced televisions hit game shows such as “Family Feud” and the “The Price is Right”. This partnership will be called Velocity Gaming.
For this joint venture, Goodson will be contributing their own skills and experience with television game show production. Meanwhile, Foxwoods will be contributing their skills and experience with casino operations, games management, and marketing. While Foxwoods will be an equity owner, the development company does not plan to make any up-front capital investments in the venture.
Mark Hutchinson, from Gaming Solutions International (GSI) – a division of Goodson Gaming, has been selected as president of Velocity Gaming. He has also provided most of the financial backing required for this business enterprise. GSI has been involved in the lottery industry for 25 years and this is the field of Hutchinson’s own expertise.
Velocity Gaming will produce a unique internet gaming site which will combine both television game shows and online gambling. The internet site will feature casino-type games which connect to the game show. One rather large headache for these two American institutions: The American government will not give out licenses for online gambling sites in the USA.
The solution was pronounced by Foxwoods Development president Gary Armentrout, “We’re going to pursue a license or licenses in those jurisdictions where Internet gaming is fully legal, regulated and taxed. . . . This venture will in no way operate in the United States.” Therefore, this venture should not be affected by American gambling laws.
Velocity is not Foxwood’s first foray into online gambling. In 2005, Foxwood created controversy with its “Playaway” program. This program was suspended after a confrontation with the Connecticut Attorney General. Ultimately, the online casino in the US was declared illegal by the Connecticut Division of Special Revenue, which charged that the gambling site violated state and federal gambling laws.
Currently, Armentrout is keeping a tight lip about which European country will have the honor of licensing the operation and therefore take the privilege of collecting potentially millions of dollars in taxes, which will be lost both to the United States in general and the State of Connecticut specifically.
The current governor of Connecticut could not be reached for comment.