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May 28, 2021

Vegas publisher: Sportsbetting, online gambling could be ‘huge tax generator’ for CT

PHOTO | FLICKR/MARIT & TOOMAS HINNOSAAR
By Matt Pilon

Connecticut’s newly signed sportsbetting and internet gaming law could eventually produce a total of $450 million in gross revenue for gaming operators, translating to upward of $105 million in state tax revenue, according to estimates from an industry news and research provider.

PlayCT.com said Friday, a day after Gov. Ned Lamont signed the new legislation into law, that online casino gaming, or ‘iGaming,” would likely be a much bigger draw -- producing $350 million in gross revenue for operators compared to about $100 million from 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," said Eric Ramsey, an analyst for PlayCT’s Las Vegas-based parent, PlayUSA.com.

"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,” Ramsey said. “And there is no obvious reason that Connecticut won't follow a similar pattern."

Ramsey said Connecticut is perhaps most comparable to Iowa, a recently legalized state that has produced just over $40 million in gross operator revenue for the first four months of 2021.

While Connecticut can’t expect to have as big an iGaming market as states like New Jersey, Pennsylvania and Michigan, its high median household income and proximity to New York and Massachusetts are expected pluses.

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

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