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August 19, 2021

Study: CT’s online casinos, sports betting could generate $418M annually

PHOTO | FLICKR/MARIT & TOOMAS HINNOSAAR
By Zachary Vasile

Combined operator revenues from Connecticut’s recently-sanctioned online gaming industry could reach $418 million annually once the market matures, according to a new study.

Researchers with CTSharp, which produces guides to legal online gambling options in Connecticut, said online casinos operating in the state could bring in $330 million in annual operator revenues, while online sports betting has the potential to generate an additional $88 million per year.

CTSharp said it reached its projections through analysis of other legal markets and states with similar populations.

The organization’s predictions are somewhat in line with earlier forecasts from industry news and research provider PlayCT, which anticipated total revenues of $450 million annually — $350 million from online casinos and $100 million from sports betting.

Either way, the state stands to benefit from taxes on the new industry.

The 10-year agreement approved by legislators places an 18% tax on online casino gaming for the first five years, rising to a 20% tax for the following five years. There is also a 13% tax on sports betting.

Connecticut legalized online gambling in May after the General Assembly signed off on a three-way revenue-sharing pact reached earlier by Gov. Ned Lamont, the Mashantucket Pequot Tribal Nation, which owns Foxwoods Resort Casino, and the Mohegan Tribe, which owns Mohegan Sun.

In the months since, each of the state’s licensed online gaming providers has reached agreements with operations companies to set up and run their virtual gambling and sports betting offerings. Mohegan Sun has partnered with FanDuel Group, Foxwoods will work with DraftKings and the Connecticut Lottery Corp. has reached deals with Rush Street Interactive and Sportech PLC.

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