Online sports betting and igaming in Connecticut boasts the potential to reach $418m in combined annual revenues, as analysts suggest the pair could become “valuable” to the state at launch.
Connecticut’s law regarding the two stipulates an 18 per cent tax rate for the first five years of operations, after which it rises to hit 20 per cent.
CTSharp projects that, at full maturity, online casinos can bring in $330m in annual operator revenue, with online sports betting adding another $88m per year.
In May of 2021, Governor Ned Lamont signed a bill legalising online sports betting and casino gaming in the Constitution State, with each seeing much recent interest.
In December 2020, DraftKings lauded a ‘landmark’ collaboration with the Mashantucket Pequot Tribe, which operates Foxwoods Casino in the state, for online sports betting access.
This was followed up last month with FanDuel securing link-up with Mohegan Gaming and Entertainment for retail and online sports betting, along with igaming and daily fantasy sports.
Furthermore, Rush Street Interactive rolled-out a sports betting and online gaming agreement with the Connecticut Lottery Corporation earlier this month.
Geoff Fisk, revenue analyst at i15 Media, said: “Our CTSharp revenue projections show just how valuable online casinos and sports betting platforms can be to a state when launched together. Connecticut, though smaller than many of its neighbouring markets, could get a headstart with both channels live.”
Connecticut’s sports betting legislation brings the state to a competitive region. Nearby New Jersey and Pennsylvania are already live, while New York, Maryland, and Massachusetts are all in the legislative or regulatory process with launches expected in the next 6-12 months.
“Connecticut sports betting is on the fast track to becoming a leader in sports betting and igaming. We’re excited to see how the market shapes up,” Fisk added.