Hartford Business Journal

12 HARTFORDBUSINESS.COM | OCTOBER 14, 2024 Mohegan Sun's on-site retail sportsbook opened in 2021, and features a 140-foot video wall and 39 betting kiosks. The Uncasville-based casino has a sports betting partnership with FanDuel. CONTRIBUTED PHOTO Game On Despite some hiccups, CT has reaped the financial benefits of legalized sports betting business, it's easy to look back and say we should have done a better job in picking the operator. But looking at the bids we received, it was a fine decision. It just didn't work out." It took until December 2023 for the state to name a replacement. Following a request for proposals, it selected New York-based Fanatics Betting and Gaming, which signed an eight-year contract. The time between announcing Rush Street's decision to exit and the hiring of Fanatics affected marketing efforts, among other things, Walter said. "Essentially, we restarted at the end of last year," he said. "We've seen very good growth with Fanatics. Not only is the market increasing, but from a lottery/Fanatics standpoint, we're expanding because of their online presence." He conceded, however, that compe- tition is fierce. "The industry has learned that it is very hard to compete with DraftKings and FanDuel, whether there are three or 25 operators in the state," he said. "Those two companies have the lion share of total sales in every single state they operate in." Learning curve While online and mobile gambling continue to grow, the state's effort to grow its retail sports betting opera- tions has been a mixed bag. For example, the state lottery announced in September 2022 that Arooga's Grill House and Sports Bar in Shelton would become a retail gambling location. After Rush Street's exit, the restaurant and bar became a Fanatics Sportsbook location in December 2023. Just two months later, however, Arooga's abruptly closed. Similarly, Fanatics Sportsbook restaurant and bar at the XL Center opened in September 2023 and strug- By David Krechevsky davidk@hartfordbusiness.com N early $5 billion. That's approximately how much money has been wagered in Connecticut since retail sports betting became legal here on Sept. 30, 2021, followed by online sports gambling about two weeks later. In the three years since, the state has had its share of wins and losses. The losses have included unexpectedly having to change the vendor operating its retail and online sports-betting operations; the abrupt closing of a retail betting venue; and the rough first year for its sportsbook at the XL Center in downtown Hartford. As for the wins, well, like anything surrounding gambling, it's all about the money. And the financial numbers suggest the state has done quite well to this point. Since its inception, wagering on sports has produced nearly $383 million in revenue for operators, and more than $52.7 million in payments to the state General Fund, according to the Department of Consumer Protection. The General Fund payments are more than 2.5 times the $19.3 million that was projected by the Office of Fiscal Analysis for the first year of the program. By comparison, though, payments to the state budget from online casino gaming — which also became legal in Sept. 2021 — have totaled nearly $160 million, so there is still room for growth. Officials with the Connecticut Lottery Corp., Capital Region Develop- ment Authority (CRDA) and Mohegan Sun casino all said they believe the state's sports betting results have been good, and they expect them to continue to improve with time. "We're kind of still in the first inning as far as legalized sports betting in the state," said Andrew Walter, director of sports betting for the Connecticut Lottery Corp. Calling an audible Walter said there are still consumers in the state who aren't aware they can now legally bet on sporting events. "Like any new product, there continues to be new customers real- izing that this is available to them," Walter said. Under state law, 13.75% of net profits from sports betting are paid into the General Fund by all the approved vendors, which now include Fanatics Sportsbook, DraftKings Sportsbook and FanDuel Sportsbook. "If you look at the monthly payments, it has been good for the state," Walter said. He admits, though, it could have been even better if not for losing the state's original bookmaker, Chica- go-based Rush Street Interactive. The company announced in March 2023 that it decided to exit the market because it wasn't profitable enough. "Switching the operators was a significant disruption last year," Walter said. "So, with any new Andrew Walter PLACE YOUR BETS Besides the casinos, Connecticut has 10 retail venues for sports betting: • Bobby V's Restaurant and Sports Bar in Stamford and Windsor Locks • Fanatics Sportsbook at the XL Center in Hartford • Shea's Pizzeria and Sports Bar in Manchester • Sports Haven in New Haven • Total Mortgage Arena in Bridgeport • Winners off-track betting in Hartford, Milford, New Britain and Waterbury Source: Connecticut Lottery Corp.

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