The agreement comes after the Mohegan Tribe reached a historic gaming agreement with Connecticut Gov. Ned Lamont to allow sports wagering and iGaming.
FanDuel will build a temporary retail sportsbook inside Mohegan Sun with four live betting windows and 16 self-service betting terminals. A permanent sportsbook is expected to open this winter.
FanDuel will offer Connecticut customers mobile sports wagering as well as an online casino experience and DFS.
"Mohegan Sun is an iconic casino and entertainment destination in the Northeast, and we are excited to announce our first tribal gaming partnership with one of the leading tribal operators in the United States," said Amy Howe, President of FanDuel Group. "We have some incredible plans for the retail space at Mohegan Sun, with the potential to be the largest FanDuel sportsbook in the United States. When we combine the retail sports betting experience with the opportunity for online sports betting and iGaming, Connecticut is going to be a key state for us as we look towards the start of football season."
DFS has existed in Connecticut for several years, but there was concern that new legislation allowing sports betting would force out fantasy sports. Last week the Connecticut Lottery Corporation handed out provisional DFS licenses which expire on September 30. The state hopes to have a new DFS licensing system in place by that time.
FanDuel was required to pay $326,000 for a provisional license, according to the Associated Press.