Connecticut Sees Revenue Upticks In Sports Wagering, iGaming

Connecticut July 2022 revenue report

The Connecticut Department of Consumer Protection reported gains in adjusted revenue for both sports wagering and internet casino gaming for July, with the former extending a national trend of strong performances by operators.

Despite overall sports wagering handle dipping to $78.3 million — the lowest total in the Nutmeg State since the $54.6 million generated during the launch of both gaming disciplines last October — gross revenue surged 22.5% to $7.5 million thanks to a 9.6% hold. The state was eligible to tax $6.2 million of that amount, a 28.3% increase from June that led to $860,000 in tax receipts. With 16 of the 26 states and jurisdictions with commercial wagering having reported July figures, the nationwide hold on gross revenue is 9.5%.

Internet casino gaming gross revenue dipped slightly to $20.8 million for July, but the adjusted revenue of $16.7 million represented a 2.2% increase from June. Promotional revenue dropped 11.2% to $4.1 million, as the state collected $3 million in taxes.

Sports wagering taxes have totaled $6.2 million for the year and $9.4 million in the first 10 months of action, while iGaming has generated $22 million and $28.6 million, respectively.

DraftKings and FanDuel enjoy solid months

Running Top 10 July #SportsBetting handles by state:

1 New York $800.75M
2 New Jersey $531.89M
3 Pennsylvania $336.51M
4 Michigan $224.97M
5 Indiana $206.63M
6 Tennessee $182.77M
7 Iowa $108.56M
9 Oregon $28.45M
10 West Virginia $25.02M

— Chris Altruda (@AlTruda73) August 19, 2022

DraftKings and FanDuel had roughly the same success in Connecticut in July, as their sports wagering win rates were separated by less than one-tenth of 1 percent. DraftKings totaled $32.7 million in handle — $2.5 million more than FanDuel — and its 9.8% hold resulted in $3.2 million in gross revenue.

FanDuel had a hold of 9.9% and finished $10,000 shy of $3 million in gross revenue. Both operators took less than the allotted 25% permitted for promotional revenue, with DraftKings claiming 15% and FanDuel 22% as their combined adjusted revenue totaled $5.1 million.

The Connecticut Lottery, which offers PlaySugarHouse for online wagering in addition to retail, generated $1.3 million in overall revenue from a combined handle of $15.4 million, creating a win rate of 8.7%. The 9.6% statewide hold on gross revenue was the second-highest since launch, trailing only the 12.4% win rate last November.

DraftKings also surpassed $500 million in mobile handle since launch, while FanDuel is $21 million shy of that benchmark. The two online titans are separated by about $1.5 million in all-time gross revenue, with DraftKings in the lead with $38.6 million.

DraftKings continues heavy iGaming promo spend

While Connecticut’s online casino bettors prefer DraftKings — it accounted for more than 62% of the $706.7 million wagered on iGaming in July — FanDuel’s promotional spend as a percentage of its handle is significantly lower. Promotional handle credits came to $17.9 million for DraftKings, amounting to 4% of its total, while FanDuel’s $980,000 spend was just 0.4% of the $265.7 million played.

DraftKings’ gross revenue tailed off 3.1% in July to $12.7 million, though the 2.9% win rate was the second-best since launch. It took the full 25% promotional revenue allotment, leaving the state able to levy taxes on $9.5 million in adjusted revenue.

FanDuel’s gross revenue ticked 3.3% higher to more than $8.1 million, as the win rate hovered between 3% and 3.1% for the third consecutive month. It claimed 12% in promotional revenue credits, resulting in the state placing its 18% tax rate on $7.1 million in adjusted revenue.

There has been a monthly average of more than $700 million handle for online casino gaming in Connecticut, with handle coming short of that figure on only two occasions in the first nine full months of operation.

Photo: Shutterstock

Author: Ryan Gonzales