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According to PlayCT, Connecticut could produce more than $1.5 billion in annual sports wagers, with $350 million in gross gaming revenue coming from internet casinos.
Connecticut, with a population of more than 3.5 million people, is expected to generate more than $1.5 billion in retail and online sports wagering by the third year of the market, according to PlayCT.
Based on a 7 percent hold, those wagers might generate more over £100 million in operator revenue, resulting in a hypothetical effective tax rate of about 25 percent.
Gov. Ned Lamont, who negotiated gaming compact amendments with the Mashantucket Pequot and Mohegan tribes and signed a bill legalising retail and mobile sports betting, online casinos, online poker rooms, and ilotteries, made this prediction.
Joining other states
Connecticut will join more than two dozen states with legal sports betting in some form, and will join New Jersey, Pennsylvania, Michigan, Delaware, and West Virginia as the only states with full-scale legal online casino gaming, pending approval from the US Bureau of Indian Affairs.
Eric Ramsey, analyst for the PlayUSA.com network, which includes PlayCT.com said: “Connecticut is a relatively small state, but the market has a handful of attributes that should help it punch a bit above its weight.
Good place geographically
“Geographically, the state is in a good place, with the potential to draw significant out-of-state business from New York and Massachusetts. Connecticut features one of the highest median household incomes in the US. Both factors should help the market reach maturity relatively quickly.”
According to PlayCT, which analyses and examines the state’s regulated online gaming and sports betting business, the legislative approval may yield more than $100 million in operator revenue.
Dustin Gouker, lead analyst at PlayUSA.com added: “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.”
According to PlayCT, online casinos will be much more profitable when they reach maturity, producing close to $350 million in yearly gross gaming income. If Internet casinos reach that level, the state may earn up to $70 million in annual tax revenue.
Each month, the three largest igaming markets — New Jersey, Pennsylvania, and Michigan — generate about $100 million in operator income.
“Sports betting grabs more headlines, but in states where it is legal, igaming has proven to be the far more reliable revenue generator,” Ramsey said. “Plus, history shows that a thriving full-scale online casino gaming market helps spur interest in online sports betting, making it the tide that lifts all boats. And there is no obvious reason that Connecticut won’t follow a similar pattern.”