Connecticut’s annual sports wagers will more likely surpass $1.5 billion, with the online casino industry generating a yearly gross gaming revenue in the ballpark of $350 million, according to projections by PlayCT.

Play CT has projected Connecticut to exceed the $1.5 billion benchmark in retail and online sports wagering by year 3 of the market, linking its rapid growth to the state’s population of more than 3.5 million people.

With an estimated seven percent hold, the projected annual operator revenue could well surpass $100 million, which would render a hypothetical effective tax rate of around 25 percent attainable.

Legalizing Online Casino in CT

Connecticut governor Ned Lamont has already signed the bill legalizing retail and mobile sports betting, online casinos, online poker rooms, and lotteries in the state of Connecticut following negotiations with operators such as Mashantucket Pequot and Mohegan tribes to amend gaming compacts.

Pending approval by the US Bureau of Indian Affairs, Connecticut will become only the sixth state after West Virginia, Delaware, Michigan, Pennsylvania, and New Jersey to offer full-scale legal online casino gambling. The state will also join an exclusive list of more than two dozen states that allow legal sports betting in some form.

PlayCT Data

PlayCT is a PlayUSA network-affiliated body that analyses and researches data about regulated online gaming and sports betting markets in Connecticut.

Given the exponential growth of online casinos in several states across the United States, PlayCT expressed confidence that Connecticut could attain an annual gross gaming revenue of over $350m at maturity, generating yearly tax revenue of $70 million for the state.

New Jersey, Pennsylvania, and Michigan all produced around $100 million in operator revenue per month, making them the three largest igaming markets in the country.

Executive Insights:

Eric Ramsey, an analyst for the PlayUSA.com network, which includes PlayCT.com, said:

“Connecticut is a relatively small state, but the market has a handful of attributes that should help it punch a bit above its weight.”

“Geographically, the state is in a good place, with the potential to draw significant out-of-state business from New York and Massachusetts. Connecticut features one of the highest median household incomes in the US. Both factors should help the market reach maturity relatively quickly.”

Dustin Gouker, a lead analyst at PlayUSA.com, said on the rise of online sports betting:

“Sports betting grabs more headlines, but in states where it is legal, igaming has proven to be the far more reliable revenue generator. Plus, history shows that a thriving full-scale online casino gaming market helps spur interest in online sports betting, making it the tide that lifts all boats. And there is no obvious reason that Connecticut won’t follow a similar pattern.”