CT Governor Includes iGaming Revenues in Budget
We’ve had a lot of positive news to report regarding legal online gambling in the United States in recent weeks. The good news appears to be continuing as Connecticut’s governor is already counting revenue from legalized online gambling in his budget proposal.
Also, the numbers from the first 10 days of legal online gambling in Michigan were released. Despite being only open 10 days, real money online casino gambling and sports betting in the Wolverine State brought in $29.4 million in revenue.
Connecticut Governor Earmarking Online Gambling Revenues in Budget
Connecticut Governor Ned Lamont is bullish on expanded gambling in the state. So much so that he is already beginning to count revenue from iGaming in his budget. Lamont’s two-year budget was released on Wednesday and he is including revenue of $47.3 million in the second year of the budget.
The Hartford Courant reported on the budget, revealing that the governor is including revenue from expanded gambling, along with other measures, such as legalized marijuana. The Governor is currently negotiating with both Foxwoods and Mohegan Sun regarding the expansion of gambling.
Regarding sports betting and iGaming, Lamont stated, “Our neighboring states are moving forward with sports betting and i-gaming, and Connecticut should not leave these opportunities for other states to benefit from our inaction.
My administration has been in active negotiations with our tribal partners to bring the state’s gaming economy into the digital age. And I am submitting legislation which reflects what I believe to be the best bet in ending this stalemate of inaction in a way which is in the best interest for the entire state.”
Neither sports betting nor iGaming is presently offered in CT, which is why the money from gambling expansion is included in the second year of the budget. The inclusion has many hopeful that lawmakers will push iGaming legislation through during the 2021 legislative session.
Michigan Has a Stellar Opening for iGaming
Michigan recently had a successful launch for real money online casinos, sports betting, and online poker. Earlier this week, the Michigan Gaming Control Board released a report revealing revenue numbers for January. Despite only operating for 10 days in January, the state pulled in $29.4 million in revenue at online casinos.
The average daily take from players was around $2.94 million. A full month’s revenue could have seen the state pull in over $90 million. Based on early performance, Michigan is on pace to overtake Pennsylvania for online gambling revenue. New Jersey remains the king of legal online gambling in the United States with over $100 million pulling in for January.
Looking at individual operators, BetMGM earned $11.1 million in January. DraftKings pulled in $6.2 million while FanDuel earned $6 million. Overall, the state earned $4.3 million in taxes for January.
Online sports betting didn’t do nearly as well, earning only $13.3 million. The take for the month was $115.2 million, meaning that casinos earned about an 11.6% hold for the month.
Things were about as good as could be expected for online sports betting. Online sportsbooks spent a lot in promotions and free bets to attract customers. This spending will decrease now that sites are launched and customer bases are established.
It is expected that online sports betting would have brought in around $360 million for a month in the state, which is a lot less than what’s happening in New Jersey and Pennsylvania. Those numbers will certainly be bolstered in February thanks to the Super Bowl and the upcoming NCAA Tournament. The question is whether the numbers will put them in contention with other states or continue to be disappointing.