Connecticut Sets New Sports Wagering Revenue Benchmark

Connecticut November 2022 revenue

The Connecticut Department of Consumer Protection reported $17.4 million in gross revenue from sports wagering in November as the state agency posted record highs in both revenue and handle.

The revenue figure was $450,000 higher than the previous record of $16.9 million established in September. The margin for a new standard in handle was also slim, with the $165 million some $850,000 above October’s short-lived mark. The hold on gross revenue was 10.5%, the third time in four months it was in double figures.

With the maximum amount of promotional deductions allowed for mobile operators down to 20% in the second year of sports wagering in the Nutmeg State, the adjusted revenue was also an all-time high with $14.1 million. That resulted in more than $1.9 million in tax receipts for Connecticut, lifting the total for the 2022 calendar year to $12.8 million.

Gross revenue for internet casino gaming in November was relatively flat at $26.9 million, or barely more than $25,000 below October’s total. Handle, though, plunged 7.4% off the record $975.8 million generated the previous month. State taxes levied on the $21.8 million in adjusted revenue resulted in more than $3.9 million in taxes, bumping the total for the calendar year to nearly $36.5 million.

FanDuel climbs sports wagering revenue ladder

Running November Top 10 #SportsBetting handles by state:

1 New York $1.56B

3 Indiana $452.32M
4 Tennessee $439.46M
5 Louisiana $268.64M
6 Iowa $247.48M
7 Maryland $219.07M
8 Kansas $186.35M
10 West Virginia $69.85M

— Chris Altruda (@AlTruda73) December 16, 2022

FanDuel narrowly edged out DraftKings for the top spot in sports betting handle for November, as the eternal rivals were separated by just $131,000. FanDuel, though, made more of its $69.1 million worth of accepted bets by claiming close to $9.3 million in gross revenue for a healthy 13.4% win rate.

It was the second straight month FanDuel had an all-time high in gross revenue, not surprising considering it was the first in Connecticut to both $7 million and $8 million in monthly revenue. It was also the fourth consecutive month recording a hold of 12% or better, which has contributed to clearing $50 million in gross revenue for the calendar year.

DraftKings had its second-highest handle at just over $69 million, with its 8.6% hold resulting in $5.9 million in gross revenue. That was more than a full percentage point higher than October, but the outcome continues to fit the nationwide pattern of DraftKings having comparable or higher handle to FanDuel in most states while not keeping pace in revenue. In Connecticut, DraftKings has generated $34.4 million more in handle for 2022 with $587.9 million, but has taken in $7.3 million less revenue than FanDuel.

The Connecticut Lottery, which offers online sports wagering through PlaySugarHouse in addition to retail, had $2.2 million in revenue combined from both sides while generating close to $26.9 million in accepted bets. PlaySugarHouse accounted for $1.3 million in revenue from $16.3 million handle, while retail outlets kicked in nearly $920,000.

Handle for iGaming dips for DraftKings

While both DraftKings and FanDuel were more active in promoting iGaming in November versus October, the strategy did not pay off for DraftKings. Its internet casino handle dropped 13.2% to $512.1 million, with approximately 2.5% of that total — more than $12.9 million — coming as promotional play.

The dip in gross revenue, down 4.4% to $15 million, was less pronounced thanks to a bump in win rate of more than one-quarter of a percentage point to 2.9%. DraftKings took the maximum allowable deduction of 20% on its winnings, letting the state levy taxes on $12 million in adjusted revenue.

By contrast, FanDuel’s iGaming handle improved 1.7% to $390.5 million, with its promotional handle accounting for 0.5% of that total at $2.1 million. Its gross revenue of $11.8 million was an all-time high for the second consecutive month and 5.6% higher than October. FanDuel’s deductions were approximately 17.4%, leaving the state eligible to tax close to $9.8 million in adjusted revenue.

DraftKings continues to be the pacesetter in this gaming discipline for both revenue and handle. It topped $150 million in gross revenue for the year with November’s total, compared to FanDuel eclipsing $100 million, and the $5.5 billion wagered in the first 11 months of the year was 38% higher compared to the $3.4 billion generated by FanDuel.

Photo: Shutterstock

Author: Ryan Gonzales