Connecticut Sees Revenue Upticks In Sports Wagering, iGaming

FanDuel posted gains in both categories during a solid July for operators
Connecticut July 2022 revenue report
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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

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

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