Connecticut Lottery Names Rush Street as Sports Betting Partner
The Connecticut Lottery Corp. announced Thursday that Chicago-based Rush Street Interactive —which operates SugarHouse Sportsbook and BetRivers Sportsbook — will be the state’s third and final sports betting platform.
The 10-year agreement for Connecticut sports betting includes $170 million in guaranteed minimum revenue share for the CLC from retail and online sports betting. It will also team up with Connecticut-based Sportech to offer sports betting at 10 of the 15 retail sports betting locations authorized statewide.
“Rush Street Interactive is a respected sports betting and gaming company that has established itself as a leading innovator in the industry,” Rob Simmelkjaer, chairman of the lottery’s board of directors, said in a news release. “We are impressed not only with RSI’s successes in other jurisdictions, particularly in neighboring New York and New Jersey, but also its commitment to responsible gambling practices.”
Gov. Ned Lamont signed sports betting into law on May 27, allowing the Mohegan Tribe and Mashantucket Pequot Tribe, along with the Connecticut Lottery, to expand Connecticut gambling offer online gaming and sports wagering.
Sports betting in Connecticut could launch in the fall, an ambitious timeline promoted by lawmakers and other stakeholders. Going live by the end of the year or early in 2022 is probably more realistic.
State sports betting rules have not been finalized and the two previously announced tribal gaming compacts still have to be approved by the U.S. Department of the Interior, which could be after the NFL season opener on Sept. 9.
“We look forward to working with the team at Rush Street Interactive,” Greg Smith, CLC president & CEO, said in the release. “We had 15 quality proposals from well-established gaming companies, and RSI rose to the top through the combination of its experience and commitment to quality products, customer service, and responsible gaming safeguards. We’re excited about this partnership and know our players will be getting an excellent product and customer service.”
Rush Street Revenue
Hours after the news of the deal with Connecticut, RSI announced in its earnings call the company’s plans to further expand.
RSI reported $122.8 million in revenue during the second quarter of 2021, an increase of 89% from the second quarter of 2020. The number of active users in the United States was up 128% in the second quarter with year-over-year average revenue per active user at $377 during that span.
“We are very pleased with the continued execution of ourbusiness strategy and remain focused on providing a premiere user experience for our customers,” said Richard Schwartz, Chief Executive Officer of RSI.
Rush Street Brands
In New York, RSI oversees the Rivers Casino & Resort Schenectady retail sportsbook. It took the first legal sports bet in New York and has been the leading commercial sportsbook in the state by revenue since its launch in 2019.
“We are honored to be selected by the CLC to bring sports betting to the state and people of Connecticut,” Schwartz said in the release. “This partnership represents a significant milestone for RSI, as the trust and confidence of a state-backed organization such as the CLC further validates the strength of our award-winning online gaming platform and customer service.”
Sportech Has a Share
In addition, the CLC has teamed with Sportech to offer sports betting at 10 of Sportech’s current OTB locations, including Bobby V’s locations in Stamford and Windsor Locks; Sports Haven in New Haven; and the Winners locations in Hartford, Manchester, Waterbury, Torrington, New Britain, Milford, and Norwalk.
“For over 25 years, Sportech has been the exclusive licensee of Connecticut’s off-track betting system and an established state gaming business,” Andrew Lindley, chief operating officer for Sportech, said in the release. “We are delighted to bring our established locations, local expertise, and licensed betting professionals to support CLC in delivering an exciting sports betting product across our retail network and assist in promoting CLC’s online and mobile channel.”
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