Sportsbook operators, take note! The Connecticut Lottery is now open for partnership opportunities. This is an exceptional chance for you to tap into the flourishing gambling industry in Connecticut, as Rush Street Interactive is set to withdraw later this year.
The closure of Rush Street’s PlaySugarHouse Sportsbook in the state does not have a set timeline. The duration will depend on how quickly the Lottery finds a suitable replacement and will also be influenced by the interest shown by other sportsbooks.
Rush Street bows out of Connecticut gambling
Starting from October 2021, Rush Street has partnered with the Lottery to bring its PlaySugarHouse online sportsbook to Connecticut. Additionally, within this timeframe, nine physical sports betting locations have been opened under the PlaySugarHouse brand.
In a press release issued on Monday, the Connecticut Lottery confirmed its commitment to offer sports betting opportunities. However, the release also stated that the lottery will no longer be partnering with SugarHouse. The two companies are currently working towards terminating their collaboration.
The Lottery plans to shift its sports betting operations to a new partner by the second half of 2025. Until then, SugarHouse will continue to serve as the operator in the state. Presently, there is no available information about any prospective companies that might replace Rush Street.
Nonetheless, there are countless possibilities.
Which sportsbooks might look to get into Connecticut?
DraftKings and FanDuel have formed partnerships with the Mashantucket Pequot Tribe and the Mohegan Tribe in Connecticut, acting as their online gambling counterparts. Through these alliances, the Foxwoods and Mohegan Sun casinos, overseen by these tribal authorities, experience significant advantages.
Aside from SugarHouse, the state only has these online gaming companies operating at the moment. Therefore, several online sportsbook operators are currently left out. This includes, but is not limited to:
- Bally’s
- Bet365
- BetMGM
- Caesars
- Fanatics
- SuperBook
- Tipico
From a specific perspective, the Lottery seems to have a fortunate position since it holds the sole exclusive right among three possibilities to offer online sports betting in Connecticut. Unless there are any disruptions in the alliances between the tribal authorities and their associates, it remains the only available opportunity.
Despite this, the press release suggests that the chance might not yield significant profits. Within the release, Richard Schwartz, the CEO of Rush Street Interactive, offered an explanation for the departure.
Schwartz extended appreciation to the CLC for their collaboration over the past two years. He highlighted the fulfillment derived from the collective accomplishments in Connecticut and the valuable relationships established with the players. Nevertheless, after thorough evaluation and extensive discussions with the CLC, we have determined that it is in the best interest of RSI and our shareholders to terminate this partnership, aligning with our long-term strategic goals.
In addition, partnering with the Lottery only allows a gambling company to offer sports betting services in Connecticut. However, unlike the two tribal casinos, the Lottery does not have the power to provide online casino games.
Although Connecticut has a small population, the Lottery offers a valuable opportunity due to the presence of industry giants, such as DraftKings/FanDuel, in the state.
