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 Pot Shop, some serious legislative hurdles must be vaulted. Although the state legislature last year created a framework for legal wagering on sporting events, and the recent U.S. Supreme Court decision suddenly allows all 50 states to take bets on sports, Connecticut faces a conundrum: A definitive law still needs to be passed, and a major sticking point is the role of the state’s two prominent Native American tribes — the Mashantucket Pequot and the Mohegan — that run thriving casinos, Foxwoods and Mohegan Sun, respectively.

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

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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