The Connecticut Department of Consumer Protection reported that internet casino gross revenue totaled nearly $41.5 million in January, an increase of 37.3% compared to the starting month of 2023.
iGaming operators’ winnings exceeded $40 million for the second month in a row, but January’s numbers were well below December’s record high of $44.2 million. DraftKings and FanDuel, two of the Nutmeg State’s licensed platforms, have totaled more than $1 billion for the fifth consecutive month, and their $1.25 billion total is the second-highest on record.
The state was able to tax about $35.3 million in adjusted gross revenue because both businesses withheld the maximum 15% allowed on promotional activities. The state collected about $6.4 million in taxes in January, an increase of nearly $2 million from last year.
DraftKings extends $20 million monthly streak to 5 months
DraftKings continued to drive the majority of the handle in Connecticut, clearing $700 million in handle for the third month in a row. His year-over-year handle amount increased by 31.8% to his $713.6 million, and his more than $3.9 million in played promotions accounted for nearly 0.6% of his handle amount.
January’s 3.3% retention rate was two-tenths of a point higher than 12 months ago, and total revenue increased 40.1% to $23.8 million. DraftKings withheld nearly $3.6 million in promotional credits, and the state ended up paying taxes on nearly $20.3 million of the adjusted income.
January’s numbers were slightly down compared to December, with handles down 3.8% despite spending more than twice as much on promotions. Total revenue was down 3.7%, but it still ranked second overall behind the $24.7 million DraftKings brought in to close out 2023.
FanDuel also grew year over year
It was the second time since iGaming’s launch in October 2021 that promotional credits exceeded 1% of handle value, but FanDuel has withdrawn its giveaways for the start of 2024. It handed out more than $3.9 million worth of credits to its luxury patrons. This is nearly three-quarters of the year. Percentage points of the handle amount of $529.4 million.
This is an all-time high for FanDuel, with wagers accepted in December exceeding $500 million for the first time and a 38.6% increase from January 2023. The 3.3% hold resulted in total revenue of $17.6 million, an increase of 34.5% from 12 months. Before.
But FanDuel has seen its revenue drop 9.1% since December, as its win rate was nearly four-tenths of a point lower than its all-time high of 3.7%. Since the state taxed approximately $15 million in AGR, the maximum 15% deduction for promotional activities against gross receipts amounted to more than $2.6 million, about two-thirds of the amount spent.
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