Connecticut Sports Betting to Launch October 7
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Connecticut sports betting now has an official launch date, and sports fans in the Northeastern state can start getting excited for the legal sports betting market. The Department of Consumer Protection confirmed that Connecticut is planning on an October 7 launch of legal sports betting. That will allow Connecticut to still capture three months of the NFL regular season, the prime season for sports betting revenue generation. Connecticut is the sixth-wealthiest state in the US by median household income, so sportsbooks have to be thrilled about the prospect of such an important market opening up.
Legal Background and Legislative Process
House Bill 6451 was the critical piece of legislation that allowed Connecticut to get to this point. Governor Ned Lamont signed HB6451 into law on May 27, 2021, following its Senate and House passing. The bill allows for three sports betting licensees, two affiliated with the federally recognized Native American tribes (Mohegan and Mashantucket Pequot) and one affiliated with the Connecticut Lottery. On September 9, the US Department of the Interior signed off on Connecticut’s new tribal gaming compacts. About a week later, Connecticut announced that October 7 would be the target date.
Expected Tax Revenue
Of course, the primary motivation for Connecticut moving so quickly through the legislative process is the potential for a high value of tax revenue for the state. The state will collect 18% on online casino gambling, which will increase to 20% after five years, while it will collect 13.75% on sports betting and fantasy sports. The two tribal nations and the Connecticut Lottery must contribute $2 million each year to combat problem gambling. Sports betting is expected to generate $28 million in taxes in the current fiscal year and rapidly increase in the future.
Which Sportsbooks will be in Connecticut?
Once Connecticut’s sports betting market is fully launched, there will be three different licensees in the state. FanDuel has partnered with the Mohegan Indians in a deal that will include online sports betting, Daily Fantasy Sports (DFS), and a state-of-the-art sportsbook at the Mohegan Sun Casino. DraftKings has partnered with the Mashantucket Pequot Indians and will also provide online sports betting, DFS, and a retail sportsbook. Finally, Rush Street Interactive won the bid for the Connecticut Lottery’s betting license. It’s unclear whether RSI will operate with the Sugar House or BetRivers skin in Connecticut. There are currently 15 off-track betting locations and a handful of Connecticut Lottery locations for gambling, in addition to the Mohegan Sun and Foxwoods Casinos which will offer sports betting in partnership with FanDuel and DraftKings, respectively.
Future of Sports Betting in the United States
The United States Supreme Court overturned the Professional, and Amateur Sports Participation Act in 2018, a bill that previously federally prohibited sports betting. The US market has grown rapidly ever since. Connecticut will become the 27th state to launch legal sports betting on October 7, and more states are in the process of finalizing legislation and regulations, including New York, Connecticut’s next-door neighbor. Arizona, South Dakota, Wyoming, and Washington all launched their sports betting markets in September, while Louisiana, Maryland, and Florida are expected to launch at some point later this year.
