Casino towns have always been an exceptionally profitable sector in the United States, and the advent of online casinos has allowed the industry to flourish further, along with allowing states not traditionally associated with gambling to profit in the riches. Connecticut, especially, has seized the opportunity presented by online casinos, with outstanding results.
Just this February, Connecticut’s online casinos showed record earnings of $43.7 million. This incredible figure brings great promise to the state’s gambling industry, indicating profitability to huge players as well as demonstrating its public value to state governance – within Connecticut and beyond – that will hopefully result in more freedom in legislation to allow the industry to thrive.
Background of online gambling in Connecticut
Online gambling was first legalized in Connecticut in May 2021. Governor Ned Lamont was behind the landmark legislation that permitted online casinos alongside sportsbooks to operate in the state. This placed Connecticut at the forefront of the revolution coming to the United States, and it is now one of only five states to legalize online casinos. The change in legislation is lagging behind that for sportsbooks, which are legal in 29 US states.
As online casinos are still a new industry in Connecticut, there’s currently only a few CT online casinos registered within the state. Both DraftKings and the FanDuel-backed Mohegan Sun Casino are fully licensed under Connecticut state law and offer online casino play to Connecticut state residents. Compared to New Jersey next door, where residents can play at BetMGM and bet365 as well, Connecticut still has limited options. But despite this, it’s heartening to see such exceptional growth, even at this early stage of the game.
Detailed analysis of February’s earnings
February brought $43.7 million of revenue for the casino industry in Connecticut, a record figure in the state for this industry. Even the uptick in profit from January made the second-highest increase seen since its legalization in the state.
The online casino revenue in February was 5.3% higher than January’s income of $41.5 million, not to mention that wagers also hit a record high, at $1.27 billion. This is the fourth straight month the handle has topped $1.2 billion.
The only month that has beaten February for profits is December 2023’s mammoth $44.2 million profit, which saw a drop in January due to unprecedented win rates. Every figure points to a continuation of this upward roll. It’s the seventh month straight that revenue has surged and when compared to last February’s income of only $29.1 million, we can see an over 50% increase in revenue this year.
Impact on the state’s economy
The foremost argument for the legalization of the gambling industry has always been the benefit it provides to the local economy. This month’s profits are a case study example of how online casinos bring a surge of income to the economy that just wouldn’t exist without their input.
State legislation entitled Connecticut to claim $37.2 million in gross adjusted revenue from the online gambling giants FanDuel and DraftKings. While both claimed their maximum 15% deductions for promotional spending, the state took a huge $6.7 million in tax revenue. Already, the state is seeing a 45% increase in tax revenue to this point last year, all due to the increasing profits enjoyed by online casinos.
Should this upward trend in growth continue, Connecticut can expect to see other benefits afforded to its economy as a result of a thriving online gambling industry. Chief among them is much-needed job creation with an expanding industry demanding an increased workforce. DraftKings alone is experiencing record highs, with FanDuel only a little behind.
DraftKings’ profits excel
If looking for a beneficiary of the recent revenue surge, look no further than DraftKings. The company hit a 3.7% hold on a $689.8 million handle, and this achievement dropped $25.5 million in gross revenue – a state record.
Compared to February last year, this is a staggering 52.8% increase in profit. It’s no question that DraftKings has made an exceptional move opening their games up to the Connecticut market. Despite more established casino states enjoying some mind-boggling revenues, Connecticut is showing, through growth alone, the sheer profitability of gambling in the state.
Proponents hope that this demonstration through the record profits enjoyed by DraftKings and echoed by FanDuel’s $18.1 million gross revenue – the second highest since inception – will bring more and more online casino giants to the state to enjoy the benefits to be reaped from Connecticut’s thriving online casino industry, and in turn, bolster the state’s economy for years to come.
