Connecticut iGaming, sports betting market could bring $450M in annual revenue
Connecticut could generate more than $1.5 billion in annual sports wagers and more than $100 million in operator revenue, according to PlayCT projections. In addition, online casinos could generate as much as $350 million in gross gaming revenues annually, becoming a huge tax generator for the state.
Governor Ned Lamont, who negotiated the agreements with the Mashantucket Pequot and Mohegan tribes to amend gaming compacts, signed the bill that would legalize retail and mobile sports betting, online casinos, online poker rooms, and iLotteries. Now the U.S. Bureau of Indian Affairs will have to sign off on the compacts.
Connecticut, with a population of more than 3.5 million people, could produce more than $1.5 billion in retail and online sports wagering by the market’s third year, according to PlayCT estimates.
Assuming a 7% hold, those wagers could produce more than $100 million in operator revenue. With a hypothetical effective tax rate of around 25%, more than $25 million could be injected into state coffers annually.
Online casinos should be even more lucrative, capable of generating close to $350 million in annual gross gaming revenue at maturity. If online casinos reach that mark, that would mean as much as $70 million in annual tax revenue for the state.
Dustin Gouker, analyst at PlayUSA.com noted: “Connecticut will be a successful market, and likely a significant revenue driver for the state for years to come. The state’s high median income and proximity to New York should be significant contributors to the market’s growth, particularly early on as New York makes its own push into the online sports betting market."