Connecticut’s sports betting industry is set to face a hurdle as the state’s House General Law Committee just introduced Connecticut Senate Bill 1464 (SB 1464), which would impose a maximum wagering limit on sports betting.
While this bill is for a completely different purpose, it would be a huge blow to the Connecticut sports betting industry if it’s passed. A cap on sports wagers online could significantly affect the sportsbooks’ revenues, which would also affect the tax revenue the state generates from sports betting.
Let’s start from the top. What exactly is this bill SB 1464 all about?
This bill’s main purpose is to enable Connecticut to join the Multi-State Internet Gaming Agreement (MSIGA). This would allow Connecticut residents to play peer-to-peer casino games, like poker, with other bettors from other states.
Currently, six states are in this pact: West Virginia, New Jersey, Pennsylvania, Michigan, Delaware, and Nevada.
However, there are two clauses in the bill that would bring up the implementation of a maximum wagering limit on sports betting.
These two clauses read:
So, if the House General Law Committee were to pass this bill to join MSIGA, this means they would have to set a wager cap on sports betting wagers to be able to join this pact.
It’s worth noting that the bill doesn’t specify the maximum sports wager limit. So, it’s up to the Connecticut lawmakers to do so.
A maximum sports wager limit could lead to a decrease in the revenue that sportsbooks receive.
Let’s quickly take a look at a few statistics of the revenue generated by online and retail sportsbooks in Connecticut.
Since October of 2021, FanDuel, Fanatics, and DraftKings generated a revenue of $609.4 million in the state. That’s the estimated cumulative revenue generated over the last 4.5 years.
In September of 2024, the Connecticut Department of Consumer Protection reported that these online sportsbooks generated a collective revenue of $25.3 million. And that’s not all; brick-and-mortar sportsbooks generated a collective revenue of $9.5 million in that same month.
As you can see, retail and online sportsbooks rake in big, but if a maximum sports wager limit is set, overall sports betting handle in the state might decrease.
It’s not only the Connecticut sportsbooks list that would feel the pinch. The tax revenue would also be affected in that scenario.
Since 2021, Connecticut took a tax cut of $66.4 million from sports betting. Last year, the state tax revenue from sports betting was estimated at over $18 million.
While setting a maximum cap on sports wagers could hurt the industry, advocates point out that it may also bring some positive impact.
This limit would be taken as a responsible gambling measure, which would help curb gambling addiction.
According to research, about 50,000 Connecticut residents – about 1.8% of the state’s population – struggle with gambling addiction. This study also reveals that about half of the sports wagers placed in the state are by those with a gambling addiction.
There isn’t a definite answer on whether or not Connecticut Senate Bill 1464 will be passed. The bill was initially proposed to enable Connecticut to join MSIGA, allowing the state to participate in interstate poker games, so this alone may push the bill to be passed.
It’s also worth remembering that while the bill proposes setting wagering limits, there’s no word on what those limits may be. Even if the bill does pass, there is still a chance of the limits being set so high that they have minimal real impact on overall sportsbook revenue.
In the meantime, the Connecticut sports betting industry will just have to wait and see how it unfolds.
