Connecticut Sets State Sports Wagering, iGaming Handle Records

It was a busy online gaming October in the Nutmeg State
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It was a busy October of wagering in Connecticut as bettors set all-time highs for handle in both sports wagering and internet casino gaming, according to the state’s Department of Consumer Protection.

The second year of sports wagering in the Nutmeg State got off to a strong start with handle totaling $164.2 million, surpassing the previous high of $158.1 million in January. It was a 25.8% improvement from the $130.5 million in accepted wagers in September and more than triple the $54.6 million from October 2021, though operators were accepting bets for only 20 days during that launch month.

Internet casino operators set a handle record for a second consecutive month while inching closer to their first $1 billion month, as $975.8 million was wagered in October. It was a 3.4% increase from September’s short-lived standard of $943.5 million and a three-fold uptick from the $312.9 million in bets from last year’s launch month.

When combining the two gaming disciplines, Connecticut’s tax coffers received $5.7 million in receipts, with close to $4 million coming from internet casino gaming. That has generated $32.5 million in tax revenue this year, while sports wagering has kicked in $10.9 million.

FanDuel showing no signs of slowing down

FanDuel became the first online sportsbook in Connecticut to top $8 million in gross revenue, finishing just shy of $8.1 million as it posted a 12.2% win rate for October on an all-time high of $66.3 million handle. It was the third straight month the online titan had a hold of 12% or better as FanDuel blew past $50 million in all-time gross revenue.

DraftKings barely missed setting its own all-time high for handle, accepting $73.4 million in wagers for October and coming within $350,000 of its top total of $73.7 million set in January. After two months of 12%-plus holds, bettors finally knocked the operator down a peg as the October win rate plunged 4.6 percentage points to a pedestrian 7.6%.

DraftKings finished with $5.6 million in gross revenue, but it was not enough to prevent FanDuel from taking over the top spot for all-time gross revenue. FanDuel’s $56.7 million is nearly $1.6 million more than DraftKings’ earnings, with the gap in all-time adjusted revenue smaller at approximately $650,000.

PlaySugarHouse, which conducts online wagering for the Connecticut Lottery, notched its first back-to-back months of at least $1 million in gross revenue. The $13.7 million handle ranks second to the $14.1 million in accepted wagers in March. SugarHouse also got dragged back under a 10% hold for the first time since July, landing at 7.9% after a dip of nearly four percentage points.

The five weekends of pro and college football likely contributed to retail wagering reaching eight figures for the first time, as a record $10.9 million was wagered. The Connecticut Lottery also had back-to-back months of $1 million in revenue for those wagers, getting a robust 10.6% hold to pick up more than $1.1 million.

Distinct iCasino records for DraftKings and FanDuel

DraftKings slightly bettered its online casino handle record for a second straight month with $589.8 million in wagers. (Most states measure their casino numbers in revenue only and ignore handle, but Connecticut is an exception on that front.) Promotional handle totaled $11.8 million, which accounted for just over 2% of total handle — down 63.2% from its 2022 peaks of $32.2 million in March and 22.7% from September.

DraftKings took the maximum allowable 20% in deductions — a drop of five percentage points per state law with the start of the second year of wagering — from its gross revenue of $15.7 million, leaving $12.6 million eligible to be taxed at Connecticut’s 18% rate.

FanDuel’s handle surged 9.2% from September to just $384 million, nearly bouncing back to its August record of $398.9 million. It provided $1.9 million in promotional handle to bettors, representing nearly one-half of 1% — a percentage consistent since shortly after launch.

FanDuel reported a record $11.2 million in gross revenue, the first time the total reached eight figures and an 18.1% increase from September. It did not take the full 20% allotment allowed for deductions, settling for slightly more than 17% and leaving $9.3 million subject to the state levy. Connecticut received $1.7 million in tax receipts from FanDuel’s online casino.

DraftKings did report a loss of $3,918 from $1.2 million worth of on-site online wagering at Foxwoods Casino, the third occasion there has been a monthly loss. FanDuel has yet to post a loss in six months of reporting at Mohegan Sun and came out nearly $17,500 ahead on $860,000 in wagers.

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