November was an exciting month for the sports betting industry across the country, and it was Connecticut’s first full month with its legal sports betting market. The state reported its online sports betting handle came in at just under $128 million in November, more than double the $54 million the state brought in for October. However, the market only launched on October 19, so it’s an unfair comparison to make between the two months. Still, the early results are very promising for Connecticut, quickly becoming one of the top sports betting markets in the country.
Connecticut Sports Betting Revenue
In addition to the impressive volume of sports betting, Connecticut generated $15.8 million in sports betting revenue on the strength of a 12.6% hold rate, well above the typical average in the United States of about 7%. $3.9 million of that revenue was doled back out to bettors in the form of promotions. Of the remaining $11.9 million, Connecticut taxed operators at almost 14% to generate $1.6 million in taxes for the state. Connecticut is on the higher side of tax rates in the country, with some states taxing sportsbooks at rates as low as 5%.
Which Sportsbook Was the Most Profitable?
As per state legislation, there are three sports betting licenses in Connecticut. DraftKings Sportsbook, partnered with Foxwoods Casino, led the state with a $60 million sports betting handle and $5.1 million in revenue. FanDuel Sportsbook, partnered with the Mohegan Sun, followed just behind DraftKings with $59 million in total wagers but beat out DraftKings with $6 million in revenue. Finally, Rush Street Interactive’s PlaySugarHouse, partnered with the Connecticut Lottery, generated $7.7 million in total sports bets.
Retail Sports Betting Also Successful
While most sports betting in Connecticut, like in all other states, was done online, retail sports betting was still a successful operation in November. Retail sportsbooks generated a handle of $4.2 million and revenue of $750,000 on a 17.8% hold rate. Mohegan Sun (FanDuel) and Foxwoods Casino (DraftKings) have set up temporary sportsbooks with kiosks in their casinos, and permanent sportsbooks are currently under construction. The Connecticut Lottery (Rush Street Interactive) has not set an official launch date for retail sports betting. Still, it plans to open 15 retail sportsbooks and offer kiosks at several restaurants, including Winners OTB and Bobby V’s locations. The Connecticut Lottery is also working on a site for a permanent retail sportsbook, and the XL Center, formerly home to the NHL’s Hartford Whalers, is reportedly on the shortlist.
Where Does Connecticut Rank Among Other States?
Early results for Connecticut are very promising, and the total volume would make the state somewhere around the eighth-largest sports betting market in the United States. However, location detection software company GeoComply estimated about one-third of Connecticut sports betting volume came from New York. Massachusetts also saw its residents place bets across state lines in Connecticut, with tax dollars escaping the state’s grasp. New York is expected to launch its sports betting market in January, and Massachusetts is likely not too far behind, so the evolution of Connecticut’s market once those states have launched will be fascinating to track. For now, residents of Connecticut and neighboring states can rejoice that the state is fully up and running with mobile and retail sports betting.