Connecticut sets new sports wagering, iGaming revenue marks

The state’s Department of Consumer Protection on Tuesday reported record gross revenue totals for both gaming disciplines in September, with online casino gaming seeing a notable surge in play and sportsbooks furthering the nationwide pounding of the betting public.

The $943.5 million in online casino bets for September made August’s record of $851.9 million a short-lived one. That contributed to a record $24.3 million in gross revenue, which easily cleared the previous mark of $22.8 million established in April. After promotional credits and other deductions, the nearly $19 million in adjusted revenue also set a new standard, edging out the $18.8 million from January.

The state collected more than $3.4 million in tax receipts, lifting its total to more than $28.6 million for the 2022 calendar year.

On the sports wagering side, handle surged 63.1% higher than in August to $130.5 million, putting the Nutmeg State over $1 billion for the calendar year. With the house doing boffo business on NFL wagering and posting an overall hold of 13%, operators claimed more than $16.9 million in gross revenue, topping the previous best of $16.3 million in February. Adjusted revenue also hit an all-time high of $12.9 million, with the state collecting close to $1.8 million in taxes.

The reports wrapped up the first 12 months of iGaming and sports wagering in the state. Overall, nearly $8.9 billion was wagered on online casino games, including more than $7 billion in 2022. Operators finished the 12-month period with $246.1 million in gross revenue, good for a 2.8% hold on all disciplines. The adjusted revenue of $195.8 million led to $35.2 million in tax receipts.

Sportsbooks accepted nearly $1.4 billion in wagers for the first 12 months of activity, notching an 8.4% win rate to claim $114.3 million in gross revenue. Approximately 2.8% of that handle — $38.7 million — came from promotional play. When deducting promotional revenue credits, the $89.2 million in adjusted revenue created close to $12.3 million in tax receipts.

An online casino surge at DraftKings

DraftKings has always aggressively sought customers in Connecticut, but some offers in September clicked in large fashion as its iCasino handle spiked to a record $588.4 million for September. That was a 30.9% increase from August despite promotions increasing only $1.1 million month-over-month to $15.3 million.

Despite its overall hold slipping to 2.5%, the surge in handle helped push DraftKings over $14 million in gross revenue for the first time since launch last October. The Massachusetts-based company took the full 25% deduction allowed for promotional credits, as the $11 million in adjusted revenue was second all-time to the $11.1 million claimed in January.

As DraftKings’ handle soared, FanDuel‘s dipped. It saw an 11.8% decline in online casino wagering to $351.7 million, even as its promotional handle clicked 48.6% higher compared to August to nearly $1.6 million. That amount, representing less than half of 1% of its overall handle, was the most FanDuel doled out in free play since it awarded $1.9 million in November.

Despite the lesser action, revenue climbed 7.1% month-over-month to nearly $9.5 million, as the overall hold jumped nearly one-half percentage point to 2.7%. It was the second time FanDuel’s gross revenue surpassed $9 million, finishing behind only the $9.7 million collected in April. FanDuel took nearly 17% of its allowable deductions, finishing with close to $7.9 million in adjusted revenue and paying $1.4 million in taxes for the month.

Tighter races for sports handle and revenue

The eternal sports betting rivals both fared quite well when it came to sports wagering in September, as FanDuel, DraftKings, and PlaySugarHouse all eclipsed 10% win rates for the second straight month. FanDuel posted a 13.5% hold on close to $53.8 million handle, resulting in nearly $7.3 million in gross revenue. Head-to-head, FanDuel had the higher gross revenue in seven of the first 12 months of wagering in Connecticut.

DraftKings, though, could take solace in cracking the $7 million gross revenue barrier for the first time, finishing with more than $7.1 million on the strength of a 12.3% win rate from $58.3 million handle. DraftKings took the handle crown in 10 of the first 12 months, accepting nearly $600 million worth of wagers, though less than $31 million separate the pair.

As for PlaySugarHouse, it also made edits to its record section, finishing with all-time monthly highs in gross revenue ($1.1 million), adjusted revenue ($907,020) and win rate (9.6%). The Rush Street Interactive sportsbook also surpassed $100 million handle for the calendar year.

The Connecticut Lottery also enjoyed its best month on the retail side, posting a robust 15.7% hold to claim more than $1.4 million in revenue from handle just shy of $9 million. Retail handle for the first 12 months totaled nearly $78 million, with strong performances in both August and September helping nudge the overall win rate over 10%.

By Chris Altruda