Fanatics Sportsbook takes bow in Connecticut after finalizing lottery partnership
Fanatics Sportsbook went live in Connecticut on Tuesday, less than two weeks after the sportsbook struck a deal to enter the market.
Fanatics Betting and Gaming is a subsidiary of Fanatics Holdings, Inc. Earlier this month, the Connecticut Lottery Corporation (CLC) selected Fanatics as its new sports betting partner after Rush Street Interactive withdrew from the agreement in March.
A spokesperson for Fanatics said Tuesday's debut was a soft launch. Only the first 2,000 customers in Connecticut to download the Fanatics Sportsbook app and register an account will be accepted. Barring any technical or regulatory issues, online sports betting will open to more punters on Monday, December 18.
Fanatics is now also CLC’s retail sportsbook partner, accepting bets in person at 10 locations across the state, including the XL Center in Hartford. Fanatics Sportsbook is also located in Shelton, Stamford, Windsor Locks, Manchester, New Haven, New Britain, Milford and Waterbury. Fanatics is working to open a sportsbook at Total Mortgage Arena in Bridgeport.
Connecticut marks Fanatics Sportsbook’s ninth state.
Lottery Sports Betting
Connecticut expanded gambling in 2021, with Gov. Ned Lamont (D) and his tribal partners amending the state’s two Class III gambling treaties. The revenue sharing agreement was modified to allow iGaming as well as retail and online sports betting by the Mohegan Tribe and Mashantucket Pequot Tribal Nation, which own and operate Mohegan Sun and Foxwoods respectively.
In exchange for gambling expansion, the tribe agreed to partially relinquish control of its gambling monopoly, allowing the Connecticut Lottery to enter sports betting. CLCs can operate online and retail sportsbooks, but not online slots and table games like tribes can.
CLC selected Rush Street Interactive as its sports betting partner in August 2021. Chicago-based Rush Street Gaming's interactive gaming unit has committed at least $170 million to the Connecticut Lottery over the course of a 10-year agreement.
Rush grossly overestimated the market and fell well short of its $17 million annual tax liability. Rush Street's SugarHouse Sportsbook contributes an average of about $300,000 a month to the state through its online and retail gaming operations, according to revenue reports from the Connecticut Department of Consumer Affairs.
Rush terminated his CLC agreement, and while a breakup fee is suspected, the exact amount has not been publicly disclosed. Fanatics' agreement with CLC was also not disclosed.
Connecticut taxes sports betting revenue at 13.75%.
Fierce competition
Connecticut-based Fanatics is competing with two industry leaders, DraftKings and FanDuel. Mohegan partners with FanDuel and Foxwoods partners with DraftKings for iGaming and sports betting.
FanDuel is the leading national sports betting operator. In October, FanDuel levied a 13.75% tax on its online sports betting winnings on just over $1 million. DraftKings paid the state more than $866,000. The Connecticut Lottery’s online sports betting taxes total $152,600.
Fanatics CEO Michael Rubin isn't shying away from a market dominated by DraftKings and FanDuel. The billionaire said he is on a mission to make Fanatics one of the largest sportsbooks in the United States.
Read also:
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
- Caesars sells $1.5 billion in bonds, secures new $2 billion term loan
- New York Knicks center Mitchell Robinson to miss 10 weeks
Source: www.casino.org
