CT’s two casinos generate $175M million in online and sports gambling revenue
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Online betting and sports wagers have added a nearly one-third premium to slot revenue generated by Foxwoods Resort and the Mohegan Sun casinos since expanded gambling was established in Connecticut last year, cheering tribal officials who fought to bolster their gambling enterprises.
The revenue is a needed boost for the casinos that are struggling with inflation, particularly as gas approaches $5 a gallon, making gamblers think twice before heading to the casinos.
“We’re tracking better than we thought,” said Rodney Butler, chairman of the Mashantucket Pequot Tribal Nation, which owns and operates Foxwoods.
The two casinos together generated$126.2 million in online gambling revenue from October through May, according to the state Department of Consumer Protection. Sports betting raised an additional $48.6 million. The two forms of gambling represent a 31% premium to slot revenue of nearly $559 million in the same eight months.
“We’re tracking right on the plan,” said Rich Roberts, president of Mohegan Digital at the Mohegan Sun. “It’s meeting our expectations.”
More money, always welcome, is particularly helpful as soaring inflation keeps some casino visitors at home. Phone apps, tablets and laptops offer gamblers a way to indulge their interest without changing their location.
“Gaming is always a leading indicator of the economy,” Butler said. “The price of gas matters. Foot traffic has started to slow down.”
Foxwoods’ slot machine revenue generated by casino visitors fell more than $700,000, or 2%, from March to April. The decline accelerated to $1.2 million from April to May, down 4%.
Slot revenue tumbled in the same two months at the Mohegan Sun, too.
Roberts said Mohegan Sun’s customers are using the casino’s brand through the app “and then making their way to the property.”
“What we’re seeing is our overall plan coming into play,” he said. “Digital is an extension of retail.”
David Sacco, an instructor in finance and economics at the University of New Haven, said the threat of recession could have a greater impact on casinos than inflation. But sports bettors are not affected by recessions, brushing aside economic downturns to pursue money-making opportunities related to their favorite teams, he said.
Gamblers have to make a “relatively significant commitment” to go to a casino, but anecdotal evidence points to gamblers going online “to pick myself up,” Sacco said.
The state has a stake in casino revenue, claiming more than $30 million in tax revenue from October through May for online gambling, sports betting and retail sports betting run by the Lottery. Connecticut also has collected $80.5 million as its share of casino slot revenue this year.
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Diversifying revenue was a key argument in the battle to bring gambling and sports betting to laptops, phones and tablets, Butler said.
“This is everything we discussed why we needed that,” he said. “It balances everything.”
Gov. Ned Lamont, whose administration negotiated the gambling expansion last year with the Mohegans and Mashantucket Pequots, had said he wanted to update Connecticut’s gambling rules that previously did not permit online access. He also pushed for sports betting as a way to compete with other states for revenue.
As gambling has expanded, so have bettors who struggle with addiction and financial problems. Calls and communications through online chats with the Connecticut Council on Problem Gambling have increased an average of nearly 150% since October. the organization does not disclose the number of calls and chats.
Executive Director Diana Goode said counselors are hearing for the first time from gamblers who are not reporting a problem, but expect to get into trouble due to an inability to stop gambling.
“This is not a problem, but it will be,” she said. “The ease of access can really run into problems. Before you had to get up and go out. You had to put some thought into it. Now you don’t have to put thought into it.”
