The CT Lottery is looking for its next sports betting partner.
The Connecticut Lottery posted a request for proposal last week, seeking a new sports betting and daily fantasy sports provider. Rush Street Interactive pulled out of its 10-year partnership with the lottery in March.
RSI’s PlaySugarHouse will continue to operate until a new partner is in place, as well as the two other Connecticut sportsbooks: DraftKings and FanDuel. There are three available licenses in the state, with DraftKings and FanDuel partnering with the two gaming tribes in Connecticut.
RFP details for CT sports betting
The lottery issued the RFP April 10 with all submissions due by the 3 p.m. May 19 deadline.
The contract is expected to cover eight years, with up to a five-year extension possible, according to Connecticut Lottery documents. The lottery wants a clear-cut demonstration of potential revenue share breakdowns, likely more than $10 million annually.
Along with the online license, the CT Lottery can offer sports betting through 15 retail locations.
Who could come calling for CT sports betting license?
There were four additional bidders in the original CT Lottery RFP:
- Caesars
- MGM Resorts
- Penn National
- PointsBet
The only operator from that list that seems unlikely to bid again is PointsBet. While PointsBet could, it withdrew its application for MA sports betting in February, suggesting it will focus on its existing footprint.
Other operators that could desire a push into the market include Betway, bet365, Fanatics and Tipico. The tribal partners did negotiate with the lottery to ban its sportsbook partner from using a brand used by other land-based casinos. That could prove problematic for several potential operators.
What happened to RSI in CT?
The CT Lottery picked RSI as its partner in August 2021. The contract was for a minimum of $170 million over the 10 years, more than the required $95 million.
RSI struggled to keep pace and was a distant third since the state launched in October 2021.
“We thank the CLC for their partnership over the last two years,” RSI CEO Richard Schwartz said regarding the CT exit. “We are proud of what we have accomplished together in Connecticut and have enjoyed the relationships that we have built with the players. Consistent with our long-term strategic goals, after much deliberation and discussions with the CLC, we believe it is in the best interest of RSI and our stockholders to wind down this partnership.”
| Handle | Revenue | Hold | |
|---|---|---|---|
| DraftKings | $938,437,013 | $85,731,199 | 9.1% |
| FanDuel | $895,880,853 | $96,262,968 | 10.7% |
| Rush Street | $196,329,021 | $14,377,756 | 7.3% |
| Total | $2,030,646,887 | $196,371,923 | 9.7% |
