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The state of Connecticut has reached an agreement with the Mohegan Tribe, owners and operators of the Mohegan Sun casino in Uncasville, to allow new gaming options, including online wagering and sports betting, Gov. Ned Lamont announced Monday.

The governor's office said this new agreement will generate 'tens of millions of dollars' in additional revenue for Connecticut.

The new deal includes a 20% tax rate on new online gaming and a 13.75% tax rate on sports wagering, according to the governor's office.

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“This agreement represents months of hard work and dedication to getting a deal that’s best for the residents of Connecticut and moves our state forward when it comes to the future of gaming,” Lamont said in a written statement. “We are incredibly fortunate to have such a devoted partner in these efforts like the Mohegan Tribe, as they have been open to negotiation, honest discussion, and a positive path forward that is beneficial for both their tribe and the State of Connecticut.”

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“The Mohegan Tribe is proud to have reached this agreement with Governor Lamont and the State of Connecticut,” Mohegan Tribe Chairman James Gessner Jr. said in a statement. “This path will allow Connecticut to generate tax revenues from sports and online gaming that are competitive with other states, and help keep Connecticut with those states when it comes to growing our economy and benefiting the state budget. We’re thankful to Governor Lamont and his team, and we look forward to continued work with the General Assembly as this process continues.”

As part of the new deal, the Connecticut Lottery will be able to operate 15 retail sports betting locations, including new ones in Hartford and Bridgeport.

The agreement is for 10 years with a five-year extension option.

While Rodney Butler, chair of the Mashantucket Pequot Tribal Nation, acknowledged his tribe has not yet agreed to the terms of the deal, he said the negotiators are “literally on the one-inch line.” He said the sticking point has to do with a revenue issue that is “a rounding error” for the state budget but crucial to the future of his tribe.

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“I’m certain we’ll get there and we’ll get there soon,” Butler said.

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Connecticut has grappled for years with how to modernize gambling in the state given the two tribes’ exclusive rights to casino gambling under a compact with the state. In exchange for those exclusive rights, the two tribes provide the state of Connecticut 25% of their slot machine revenues.