Sportech, the operator of the Connecticut Lottery’s retail betting business, has reported continued growth for the vertical with a full year handle of $100m in 2022.
Across the eight approved venues in the state, Sportech reported that $98.7m was wagered, with a stronger than expected hold rate of 9.4%, driven by 40% of bets placed being parlays.
In addition to the $100m handle, Sportech also revealed total wagers of $98.7m during 2022, with the former driven by bets on MLB, whilst volume and value was driven by NFL and NCAAF wagering.
Sportech stated: “Our business relationship with the CLC, continues to strengthen and we have progressed a new agreement with CLC, providing a further commitment to building on the early success of Sports Betting across the State.
“During 2022, one non-performing location was closed and certain leases were extended to meet demand and secure the profitable estate. Whilst the significant New Haven lease was extended to February 2024, it is expected that the business will move out of this property to a new venue in the vicinity, to maintain betting handle growth.
“Additionally, two new locations are being evaluated that would provide pari-mutuel and sports betting product suite to more Connecticut retail consumers and in doing so will create the blueprint for a future Venue model for the business.”
Sportech also noted January and February 2023 saw 33% and 18% betting handle growth respectively vs 2022 as the Connecticut sports betting business continues to grow.
The Connecticut Lottery is one of three sports betting operators in the state, holding both a retail and online operation, although it is currently searching for a new partner for the latter.
Rush Street Interactive (RSI) has been the firm’s online sportsbook partner since 2021, but the lottery announced earlier this month that the partnership would roll back throughout the remainder of the year, anticipating a new partner during H2.
There is no indication on any official level that Sportech would seek to operate the online side of Connecticut Lottery’s sports betting venture.
Instead, the UK-based betting and tech firm is focused on growing its retail division, which has been lauded by the Connecticut Lottery, describing its operations since ink dried on the partnership in September 2021 as ‘a successful rollout’.
Providing insight into its 2023 plans, Sportech concluded: “Sport and capturing the wagering revenues of its followers is clearly the opportunity for the Venues business and we continue to reshape the business accordingly.
“Management has developed a retail brand and experience format optimising the mix of formats and locations of venues to further enhance and better capture the sports betting market without detraction from the mainstay earnings of pari-mutuel betting.
“We see the most promising signs of improvement in bar and restaurant formats, which cater to sports patrons and offer a close-to-live game experience for customers.”