A bill to establish the framework for legalization and regulation of recreational marijuana was narrowly approved by the state legislature’s appropriations committee, 27 to 24, in April. It

so far has not been voted on in either the House or Senate. Hillary Kladke | Getty Images Despite Connecticut’s deep roots in Puritanism, which generally frowned upon frivolity, the

Constitution State is poised to shun its priggish past in order to boost its stagnant economy by legalizing sports betting and recreational marijuana — potentially generating hundreds of

millions in much needed revenue, creating thousands of jobs and promoting tourism. But before anyone thinks about trademarking the Connecticut Yankee Sports Gambling Parlor or the Ye Olde

state’s two prominent Native American tribes — the Mashantucket Pequot and the Mohegan — that run thriving casinos, Foxwoods and Mohegan Sun, respectively. America's Top States for

Business 2018 Their existing gambling contracts with officials in Hartford would grant both casinos the rights to open sportsbooks, similar to the lucrative ones in Las Vegas that take

wagers daily on most any sports event in the world. Yet the tribes are claiming exclusivity that would effectively shut out any competitors, an assertion Connecticut Attorney General George

Jepsen disagrees with. The tribes are also negotiating the percentage of sports gambling revenues the casinos would have to pay the state. The tribes now give Connecticut 25 percent of their

gross slots revenues in return for exclusive rights to all casino games, a deal that produced about $270 million for the state in 2017. It’s estimated that nearly $2 billion of sports

betting could take place in Connecticut. > Legal weed won’t solve the state’s $2.2 billion deficit, but > it’s certainly something the legislature should be looking at. >  > Sam 

Tracy > director of the Connecticut Coalition to Regulate Marijuana The state’s 2018 legislative session ended in May, although Gov. Dannel Malloy — who isn’t running for reelection in

November — has said he may call a special session sometime this summer to consider the issue. If not, lawmakers won’t return to Hartford until 2019. Malloy’s office did not respond to

numerous requests by CNBC for information about the proposed session or the governor’s most current position on sports betting. “We are bullish on the potential for sports wagering to assist

us in growing our business and promoting tourism in Connecticut,” said Chuck Bunnell, Mohegan Tribe chief of staff of external and governmental affairs. Professing a strong relationship

with the powers that be in Hartford, while acknowledging the differing legal positions on exclusivity rights, he said that “we are talking and are mutually committed to explore every

possibility to bring this option to Connecticut.” MORE FROM AMERICA'S TOP STATES FOR BUSINESS: * America's Top States for Business 2018: The full list * The biggest winners and

losers in CNBC's 2018 America's Top States for Business study * The 10 most expensive states to live in America in 2018 Inherently opposed to the tribes’ proprietary claim is

London-based Sportech, which operates legal gambling businesses and provides related B2B technical services internationally, including 16 locations in Connecticut for parimutuel betting on

horse racing, dog racing and jai alai. “We agree with the attorney general,” said Sportech CEO Andrew Gaughan. His optimism that Jepsen and other proponents will ultimately prevail is

reflected in Sportech’s plans to build eight new betting venues throughout the state, collectively contributing not only $100 million in tax revenues over five years but expanding its

workforce to 700 full-time employees. The Mashantucket Pequot and the Mohegan tribes — which run the thriving Foxwoods and Mohegan Sun casinos, respectively — currently give Connecticut 25

percent of their gross slots revenues in return for exclusive rights to all casino games, a deal that produced about $270 million for the state in 2017.  Jessica Rinaldi | The Boston Globe |

Getty Images Meanwhile, efforts to legalize recreational marijuana in Connecticut — where medicinal weed is already lawful — are also stuck in legislative limbo. A bill to establish the

framework for legalization and regulation was narrowly approved by the state legislature’s appropriations committee, 27 to 24, in April but never came to a vote in either the House or

Senate. “We made it further than ever before,” said Sam Tracy, director of the Connecticut Coalition to Regulate Marijuana, citing a status-quo bias against legalization as the main

stumbling block. Conversely, a Sacred Heart University poll last October found 70 percent of state residents either “strongly” or “somewhat” support legalizing pot for adults and taxing it,

so Tracy remains upbeat that one or more new bills will be introduced, and hopefully passed, during the next session. “We are organizing our growing coalition of organizations and community

leaders to hit the ground running in the spring,” he said. The group estimates that legal weed will create nearly 19,400 jobs and add $180 million annually to Connecticut coffers. “That

won’t solve the state’s $2.2 billion deficit,” Tracy said, “but it’s certainly something the legislature should be looking at.” Another strong incentive for legalizing both marijuana and

sports betting is the fact that neighboring states are taking the plunges — and getting ready to lure Connecticuters across their borders. Massachusetts voters passed a pot referendum in

2016, and retail sales will begin this summer. New York Gov. Andrew Cuomo, up for reelection in November, has come out in favor of legalization, joining New Jersey’s Gov. Phil Murphy. New

Jersey has already approved sports betting, as have nearby Rhode Island and Delaware. Massachusetts is considering legislation, especially in light of next month’s opening of the MGM Casino

in Springfield, presenting an even greater threat to Foxwoods and Mohegan Sun. “Connecticut shouldn’t be left behind,” said Sportech’s Gaughan.