Examining Connecticut’s Online Gambling Revenue in 2024
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Red Dog On October 19, 2021, Connecticut’s Department of Consumer Protection allowed the launch of online gambling. The state had witnessed the revenue potential of online gambling and wanted to capitalize.
The legalization proved successful as CT collected around $100 million in state tax revenue from online gambling from 2021 to 2023. Within three years, online bets became one of CT’s biggest contributors.
This article will discuss the historical and up-to-date revenue of Connecticut’s Online Gambling Industry, exploring segmentations and factors of the market, such as:
- Online casinos,
- Online sports betting, and
- iLottery
Highlights of the Article
- Online casino gambling in Connecticut was legalized in May 2021, but it was only in October of that year that online casinos were launched.
- Connecticut’s gambling revenue is $47.6 million in 2021, with online casino revenue contributing 60% of the total revenue while sports betting is nearly 40%.
- In 2021, Foxwoods Tribal Casino dominated the Connecticut online gambling market share with 61% and 39% from Mohegan Sun.
- The online Betting market in Connecticut has paid almost $3 million in tax during its first three months of operation in 2021.
- In CT’s first year of legal betting operations, the iGaming sector made $8.9 billion in bets in online casino games, and sports betting recorded approximately $1.4 billion in wagers in its one year of operation.
- The total collected tax from Connecticut’s two online casino operators reached over $40 million in 2022
- Online casinos in Connecticut generated a combined revenue exceeding $30 million for the first time in January 2023.
- CT’s latest monthly revenue in July is valued at $28.2 million, and the sports betting market has reached $10.3 million in revenue.
- The total iGaming GGR of Connecticut reached $218.3 million in the first semester of 2023.
Connecticut’s All-Time Online Gambling Industry Earnings
The legalization of fantasy sports bets influenced Connecticut’s decision to allow online gambling. Since it started in 2021, people have wagered $23 billion for online casinos and $3 billion for online sports betting.
The tables below highlight Connecticut’s massive online gambling industry, showing how profitable the market has been to the state since its legalization in 2021.
| YEAR | ONLINE CASINO REVENUE | TAXES |
| 2021 | $47,589,481 | $6,629,622 |
| 2022 | $280,673,671 | $40,578,946 |
| 2023 | $361,991,455 | $53,138,713 |
Looking at the numbers, Connecticut’s online casinos have made $690,254,607 in revenue from October 2021 to November 2023.
In 2023 alone, the money made from casinos is more than what was earned in the previous years combined.
| YEAR | ONLINE SPORTSBOOK REVENUE | HANDLE | TAXES |
| 2021 | $33,267,269 | $336,444,408 | $3,154,423 |
| 2022 | $145,306,247 | $1,519,890,754 | $14,525,092 |
| 2023 | $159,435,590 | $1,550,846,647 | $16,967,075 |
The legality of gambling has been increasing in more US states due to the Supreme Court repealing the PASPA in 2018. This ruling placed the responsibility of creating gambling laws on individual states.
As of 2023, around 64% of US States that legalized Sports Betting allow Online and In-Person wagers. CT’s revenue has steadily increased since 2021, reaching $338 million from October 2021 to December 2023.
The state’s online gambling scene shows no signs of slowing down since it has already outdone its previous revenue by $14.1 million.
| YEAR | ONLINE LOTTERY REVENUE | GENERAL STATE FUND |
| 2021 | $524,103,228 | $418 million |
| 2022 | $503,571,486 | $402 million |
| 2023 | No Data Available | No Data Available |
However, there seems to be a decrease in the online lottery revenue in 2022 compared to the previous year.
Side Note
Connecticut is among the 44 US states that have legalized casinos, as the majority of the country recognizes the profitability and job potential it brings to the states.
With around 1,455 to 2,145 online, physical, and tribal casinos in the US, the industry generated $145.92 billion in 2023, showing how lucrative the market is.
Connecticut’s Online Gambling Revenue in 2023
Connecticut’s online gambling revenue reached around $218,261,362, surpassing experts’ projections from January to July 2023 by 6.6%.
With November 2023’s new revenue, the total online casino revenue had reached $361,991,455, a 28.97% increase from the total gambling revenue from 2022.
Take a closer look at the figures and income of the online gambling market in 2023.
Monthly Revenue and Taxes Breakdown for 2023
| JANUARY 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $30,219,887 | $4,352,814 | $924,595,284 | ||||
| Online Sportsbooks | $17,156,956 | $1,919,290 | $167,673,044 |
Connecticut’s online casinos generated a combined revenue exceeding $30 million for the first time since the legalization of online gambling. The state’s casino revenue recorded an increase of 6.6%.
The online sports wagering market started in the first month of 2023 with $167.7 million in handle. Data showed a 4.6% improvement from the previous month and a 6.1% yearly increase.
| FEBRUARY 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $29,094,058 | $4,190,084 | $945,353,517 | ||||
| Online Sportsbooks | $10,535,522 | $1,175,694 | $136,508,300 |
February saw a $6 million decrease in online gambling revenue from the previous month.
DraftKings and FanDuel paid $4.2 million in tax to the constitutional state. CT’s three online sports operators recorded $136.508 million in handle, a decrease of 18.6% from the previous month.
The online casino operators in Connecticut handed over $4,190,084 worth of tax in February 2023, a 3.7% decrease from January.
| MARCH 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $34,576,428 | $5,147,684 | $1,089,491,246 | ||||
| Online Sportsbooks | $16,118,085 | $1,855,821 | $159,997,579 |
The Nutmeg State’s online casino market generated a double-digit jump in total handle with $1.09 million, an increase of 15.2% from the previous month.
The state’s share of iGaming revenue was almost three times larger, producing $5.1 million from online casinos and $1.8 million from sports betting.
| APRIL 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $31,814,055 | $4,596,765 | $994,175,552 | ||||
| Online Sportsbooks | $12,838,106 | $1,458,73 | $126,683,869 |
The total recorded sports betting bets amounted to $126.7 million in April 2023.
CT’s online gambling market had a downward curve during March-April, with an almost $3 million decrease in earnings. However, data shows a significant increase of 27.5% from February 2022’s revenue.
DraftKings and FanDuel handed over $4.5 million worth of tax, a nearly 25% increase over the previous period.
| MAY 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $32,791,705 | $4,758,767 | $1,013,895,462 | ||||
| Online Sportsbooks | $14,662,066 | $1,645,394 | $109,421,369 |
Connecticut’s online sports wagering recorded a total handle of $109.4 million in May 2023. The Nutmeg state is the fastest-growing online casino market in the US, with an annual growth of 57%.
The online casino revenue has recorded $32,791,705, ranking 4th among US states that offer legal online gambling.
Nutmeg State’s online gambling has exceeded experts’ forecast in 2023’s first five months of operation with only $149.2 million in GGR. Still, it has a record-breaking $158.5 million revenue.
The total handle recorded for this month shows a decrease of 13.6% from April and a downward trajectory of 5% from last year’s handle.
| JUNE 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $31,570,565 | $4,575,081 | $962,640,297 | ||||
| Online Sportsbooks | $8,658,189 | $961,577 | $91,414,677 |
Connecticut’s two online casino operators earned over $26.7 million in June 2023.
June was a slow month for Connecticut’s online sports betting market, dropping by 42% in revenue and down to 16.4% in handle.
CT earned $8.6 million, a 42% month-over-month decline from three online betting operators. The sports bettors make much better as sportsbooks hold from 10.9% to 7.6% in June 2023.
The collected tax from online sports betting in June was only $961,577, the lowest since July 2022, while iGaming operators paid around $4 million.
| JULY 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $28,194,624 | $4,060,634 | $1,140,655,792 | ||||
| Online Sportsbooks | $10,400,800 | $1,215,313 | $91,512,897 |
The online casinos have paid over $5.1 million, and the sportsbook operators shared over $1.2 million in taxes in July 2023.
CT’s iGaming market has recorded a total monthly handle of $1.14 billion and a revenue of $28.2 million. The online and retail sports betting market reached $10.3 million in revenue.
July’s online sports betting handle was around $85.6 million, with a revenue of $9.8 million. Although the handle remains almost the same, the revenue in Sports Betting increased by 13.9%.
Fun Fact
Despite offering among the worst winning odds of the casino games, slot machines remain one of Connecticut’s most popular gambling activities.
As of July 2023, the total amount wagered on slots in CT casinos was over $941 million, demonstrating the continued popularity of this game among casino-goers in the state.
| AUGUST 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $24,958,553 | $4,492,540 | $985,352,680 | ||||
| Online Sportsbooks | $9,797,155 | $1,027,171 | $91,316,807 |
For August, CT’s online casino scene still pursues an increase in its trajectory. The online casino market made almost $25 million in revenue, a 41% growth compared to August 2022.
| SEPTEMBER 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $37,602,315 | $5,466,915 | $1,124,565,577 | ||||
| Online Sportsbooks | $18,900,892 | $2,048,710 | $180,954,956 |
Connecticut’s online sports betting had an excellent month in September, brought on by the start of the football season. The state’s online casino gaming also saw a significant increase.
In September, the total amount of money sports wagers in CT had a 98.2% increase from August’s handle. Aside from sports betting, online casinos also had good gains, with a 14.1% increase from August’s total.
| OCTOBER 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $36,457,640 | $5,610,250 | $1,149,711,540 | ||||
| Online Sportsbooks | $19,849,187 | $2,243,142 | $189,626,160 |
In October, adjusted gaming revenues from online casinos reached $31.1 million, showing a modest increase of 2.6% compared to the previous month’s figure of $30.3 million.
The Mashantucket Pequot Tribe and DraftKings were market leaders for October, generating $18.7 million from $688.3 million in wagers. Mohegan Sun and FanDuel followed with $12.3 million in revenue from $458.8 million in wagers.
Fun Fact
Mohegan Sun is among the biggest casinos in the US, known for its diverse slot selection. The casino offers over 4,000 slots, including Double Diamond, themed games, and progressive slots.
| NOVEMBER 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | $38,473,634 | $5,887,179 | $1,227,299,948 | ||||
| Online Sportsbooks | $12,862,839 | $1,416,233 | $205,736,989 |
The amount spent in November increased by 8.5% compared to October, and it’s more than $40 million higher than what was spent in November 2022, which was $165 million.
Even though more bets were placed, the percentage of money that sportsbooks kept, or the win rate, decreased to 6.3% in November. This number was the lowest win rate since February 2022.
FanDuel ranked first in online casino revenue with a state-high $90.4 million in bets, bouncing back after finishing second place two months earlier. DraftKings followed second, with $89.3 million.
| DECEMBER 2023 | REVENUE | TAXES | HANDLE | ||||
| Online Casinos | No Available Data | No Available Data | No Available Data | ||||
| Online Sportsbooks | $21.7 million | $2.5 million | $212 million |
Connecticut closed out 2023 on a positive note, experiencing a peak in betting activity and a notable boost in tax revenue.
According to CT’s Department of Consumer Protection, December witnessed a record-breaking $212 million in betting revenue, a 3.16% increase from the previous month.
The operators raised their hold percentage from 6.3% to 10.2%, resulting in a substantial surge in their unadjusted revenue, climbing from $12 million to $21.7 million.
Seeing the growth and potential of Connecticut’s online gambling revenue, it’s only fitting to explore the brief history of the state’s online betting industry from two years ago.
Side Note
The Crypto Mines game is among the most played online betting games in recent years in the US and globally.
The game offers crypto gamblers a chance to play and wager in the classic Minesweeper game and win massive payouts depending on the level of risk they take.
2021: Connecticut’s Online Gambling Industry Emerges
Connecticut’s legalization of online gambling was influenced by the Supreme Court’s 2018 verdict on sports betting. Three years after the verdict, CT followed suit after seeing revenue growth in New Jersey and Michigan.Since its legalization in 2021, CT’s online gambling market has grown exponentially. All online gambling is under the jurisdiction of the state’s two giant tribal casinos – Foxwoods Resort and Mohegan Sun.
Fun Fact
Connecticut is one of the smallest states in the US in land mass, measuring about 5,543 sq. mi., yet the state houses two of the biggest casinos in the country.
The tribal casinos agreed to partner with DraftKings and FanDuel. These casinos must pay 18% of their GGR in taxes on online gambling for the first five years of operation, which shall increase to 20% in the following years.
Due to the forecasted revenue of online gambling, sports betting has a lesser agreement tax of 13.75%.
Below are the taxes and revenue for the three online gambling modes:
- Online Casino
- Online Sports Wager
- Online Lottery.
Online Casinos Revenue and Taxes in 2021
| MONTH | REVENUE | TAX |
| October | $6,640,871 | $1,195,357 |
| November | $13,851,448 | $2,493,260 |
| December | $16,338,921 | $2,941,005 |
Foxwoods dominated the Connecticut online casino market share, with a percentage share of 61% compared to Mohegan Sun’s 39%.
The most popular game in Connecticut is online slot games. This unpredictable game offers 94-97% RTP, higher than other games found in online casinos.
During the first month of operation, the state collected $1.2 million from online casinos, which was deposited into the state’s fund.
It’s undeniable that online casino games produce massive amounts of money for the state’s funds from increasing monthly income from online casino taxes.
Online Sports Bets Revenue and Taxes 2021
| MONTH | REVENUE | TAX |
| October | $3,494,097 | $480,438 |
| November | $11,635,176 | $1,599,836 |
| December | $6,362,762 | $874,879 |
In the Nutmeg State’s sports betting scene, there are three providers. Most of the shares were taken by Foxwoods with 49%, followed by Mohegan Sun with 42%, and less than 10% was from CT Lottery.
Online gambling providers agreed with the biggest Sports Betting operators in the US:
- DraftKings partnered with Foxwoods.
- FanDuel represents Mohegan Sun.
- PlaySugarHouse joined up with the Connecticut Lottery.
Although DraftKings is the biggest sports provider in Connecticut, FanDuel generated higher gross revenue at $6 million, with a $900 thousand difference compared to the former.
The three online sports operators reached around $1.6 million in taxes, issuing roughly $3.9 million in promos.
CT’s online betting market paid almost $3 million in taxes during its first three months of operation in 2021. The operators contributed around $513 thousand to the state during its first month.
Online Lottery Revenue and Taxes 2021
| YEAR | TOTAL OPERATING REVENUE | STATE GENERAL FUND |
| 2021 | $524,103,228 | $418 million |
The total operating revenue of the lottery in Connecticut is roughly $1.5 billion, of which almost $525 million were from Online Lottery.
No other competitors were operating in the state, and only the CT Lottery Corporation offered online lottery.
The Lottery Corporation paid $418 million to the state general fund in 2021. The collected money is shared through different groups and movements that help people with gambling problems:
- Connecticut Council on Problem Gambling
- Problem Gambling Services department at DMHAS
Fun Fact
Online gambling is common among people aged 25-34 years old. These ages are prone to addiction, and a big part of the 2.5 million Americans with severe gambling problems.
2022: The Significant Growth of Connecticut’s Online Gambling
The Connecticut online gambling industry had a promising start in 2021, kicking off the year with an $18.8 million revenue in January, surpassing its precedent December 2021 revenue of $16.3 million.
In 2022, experts predict around $250 million in revenue from Connecticut’s online gambling market. The industry is bustling and showing substantial growth compared to the previous year.
In its one year of operation, the iGaming sector has received $8.9 billion in bets in online casino games, and sports betting recorded approximately $1.4 billion in wagers.
The state collected $40.6 million in taxes from online casinos and $13.2 million from sports betting operators in 2022. Most of the contributions are from virtual casinos.
The highest tax collected by the state in online casinos was from December 2022, amounting to $4.1 million. In the same month, sports betting has contributed $1.7 million in taxes.
Take a closer look at the taxes and revenue for the three online gambling modes in 2022 below:
- Online Casino
- Online Sports Wager
- Online Lottery
Online Casinos Revenue and Taxes 2022
| MONTH | TOTAL REVENUE | TOTAL TAXES PAID |
|---|---|---|
| January | $18,833,534 | $3,390,037 |
| February | $17,138,741 | $3,084,973 |
| March | $18,319,714 | $3,297,724 |
| April | $9,805,195 | $3,324,122 |
| May | $16,575,801 | $2,983,644 |
| June | $16,299,190 | $2,936,382 |
| July | $16,655,426 | $2,997,978 |
| August | $17,726,085 | $3,190,696 |
| September | $18,983,383 | $3,417,009 |
| October | $21,884,070 | $3,939,838 |
| November | $21,817,715 | $3,927,189 |
| December | $22,681,370 | $4,089,354 |
| TOTAL | $216,720,224.00 | $40,578,946.00 |
DraftKings dominated the online casino market in September with a handle of $588.4 million—a 30.9% increase from the previous month.
As DraftKings rose in total handle, it’s an unfortunate month for FanDuel, with an observable decline of 11.8% and only a $351.7 million full handle.
Fun Fact
Statistics from 2023 show that 41% of gamblers play online casinos for fun and enjoyment, occupying over 4,792 legal online casinos and businesses worldwide.
The total collected tax from Connecticut’s two online casino operators reached over $40 million in 2022, showing how online casinos bring fortune to the state’s general fund.
Online Sports Bets Revenue and Taxes 2022
| MONTH | TOTAL REVENUE | TOTAL TAXES PAID |
| January | $7,483,798 | $1,029,022 |
| February | $3,306,309 | $454,618 |
| March | $6,718,358 | $923,774 |
| April | $6,606,291 | $908,365 |
| May | $6,697,504 | $920,907 |
| June | $4,347,493 | $597,781 |
| July | $5,761,681 | $792,231 |
| August | $7,407,202 | $1,018,491 |
| September | $11,523,488 | $1,584,479 |
| October | $11,483,102 | $1,578,926 |
| November | $13,208,649 | $1,816,189 |
| December | $11,630,613 | $1,599,209 |
| TOTAL | $96,174,488.00 | $13,223,992.00 |
The tables have turned between FanDuel and DraftKings in 2022 Sports Betting revenue. The total wagered of FanDuel is $7 million greater than DraftKings.
The Connecticut Lottery, partnered with PlaySugarHouse, has recorded around $7.7 million place bets with a $40 million difference from FanDuel.
As online sports betting has risen in popularity, it collected a total state income of $13,223,992 from sports betting operators.
Aside from the significant revenue difference between online casino games and sports betting, sportsbooks only require 13.75% of tax from their total revenue, 6% less than online casinos’ required dues.
Online Lottery Revenue and Taxes 2022
| YEAR | TOTAL OPERATING REVENUE | GENERAL STATE FUND |
| 2022 | $503.5 million | $402 million |
The online lottery revenue in 2022 is approximately $20 million less than its previous year’s income, showing a downward trajectory compared to CT’s other online gambling activities.
The lottery industry in Connecticut has returned more than $402 million to the State General Fund to support significant programs such as:
- Public Health
- Libraries
- Public Safety
- Education
Since the inception of the lottery in the state in 1972, the contribution to the State General Fund has reached $11 billion, and more than $21 billion is the prize money by the winners.
Connecticut’s Two Online Gambling Sites
Connecticut has become one of the gambling-friendly US states as the new bill was signed two years ago, legalizing online gambling, including virtual casino games and sports betting.
There are only two online casinos that partnered with Connecticut’s tribal casinos. The state’s casino market is in a duopoly.
Both online casinos in CT operated in October 2021 with a partnership from the Mashantucket Pequot Tribe and Mohegan Tribe.
Get to know more about the two online casino operators based on:
- Casino games offered
- Promotions
- Salient features
DraftKings Casino
One of the brightest names in the online gambling industry is DraftKings Casino. It is the first company to market online sportsbook games.
The casino thrives to become a one-stop online gambling site that offers sports betting, fantasy gaming, and online casino games.
Side Note
DraftKings Casino is a reputable online gambling site. One of its prevalent game modes is crash gambling, where players cash out their bets on a rocket before it crashes.
The game’s outcome is based on the system’s RNG that determines the crash point of the rocket. This factor adds an element of anticipation and suspense to the game as players wait for the outcome.
| FACTORS | DEFINITION | ||
| Website | casino.draftkings.com | ||
| Security and License | – Malta Gaming Authority – Connecticut Department of Consumer Protection | ||
| Year Established | 2012 | ||
| Welcome Bonus | $50 Casino Credits + $2,000 Bonus | ||
| Gambling Products | – Online Casino Games – Sports Betting – Fantasy Sports | ||
| Accessibility | DraftKings Casino Mobile Application | ||
| Minimum Age | 21 | ||
| Accepted Payment Options | – Credit Card – Paypal – Bank Transfer – Play+ | ||
Pros of Using DraftKings
- Wide range of casino games
- The minimum withdrawal limit is designed for low
- Offers Fantasy Sports betting
- Great welcome bonus
- Offers live dealer games
- Various payment options are available
Cons of Using DraftKings
- No live chat feature
- Limit on-going promotions
Fun Fact
DraftKings casino is one of America’s most respected and visited gambling and sports betting sites. As of 2024, the site operates legally in eleven US states.
FanDuel Casino
FanDuel is known for its exciting 100% cashback on their losses in the casino from the first 24 hours upon registering. This offer covers up to $1000 with only a 1x wagering requirement.The betting platform is one of the most famous sites to offer games such as Crash Gambling and eSports betting.
| FACTORS | DEFINITION | ||
| Website | casino.fanduel.com | ||
| Security and License | Connecticut Department of Consumer Protection | ||
| Year Established | 2009 | ||
| Welcome Bonus | $1,000 Play It Again | ||
| Gambling Products | – Online Casino Games – Sports Betting – Fantasy Sports | ||
| Accessibility | FanDuel Casino Mobile Application | ||
| Minimum Age | 21 and over | ||
| Accepted Payment Options | – ACH – FanDuel Prepaid Card – PayNearMe – Paypal | ||
Pros of Using FanDuel Casino
- Strong live dealer casino
- Wide selection of top NetENT games
- Offers Fantasy Sports betting
- Generous matched deposit bonus
- Stellar live support
Cons of Using FanDuel Casino
- No bank transfers
- Limited on-going promotions
Fun Fact
Both online casinos offer high RTP Slot Machines such as Yggdrasil Slots.
Yggdrasil Games is one of many online casino-goers’ favorite slot machine games due to its majestic Nordic theme slots and massive payouts.
Bottomline
Connecticut’s online gambling market has shown outstanding growth with no signs of slowing down, producing billions of dollars in revenue from sports betting, virtual casino games, and online lottery.
While the state sees the opportunity for a lucrative gambling scene, its government still puts its betting citizens’ well-being in front and center, advocating for a safe and responsible gaming experience.
FAQs
What is the legal age requirement for legal betting in Connecticut?
The age requirement for online gambling in Connecticut is 21. However, gamblers 18 and up can bet on the lottery, daily fantasy sports, and horse racing.
Are online casino winnings taxable in Connecticut?
Yes, the online casino net winnings are taxed in Connecticut.
Who regulates Connecticut online casinos?
The state agency that regulates online casinos in Connecticut is the Department of Consumer Protection.
List of sources
Meet the Author
Once wrote serious life-saving stuff for the government, now unleashes his inner geek on the blog world. When not taking a deep dive into comics and video game lore or performing music, he dreams of chilling in a cold, cozy spot with a beer in his hand – probably somewhere the government won't find him. Sports and gaming enthusiast by day, cartoon and gastronomy detective by night.