Connecticut iGaming Revenue 2026: Figures and Tax

Connecticut iGaming revenue reached 537.4 million USD in online casino win during fiscal year 2025, up 32.3 percent year on year, according to the Connecticut Department of Consumer Protection (DCP). That is the amount won by operators before deductions. The lower, taxable gross gaming revenue figure that Connecticut’s 18 percent tax actually applied to was about 528.2 million USD for the same period. This guide sets out the yearly numbers since online casino launched in October 2021, explains why two revenue figures exist, and breaks down how the state taxes what operators keep.

Connecticut iGaming revenue in 2025

Connecticut iGaming revenue for fiscal year 2025 (July 2024 through June 2025) split into two numbers that operators and regulators both use. The DCP reported 537.4 million USD in online casino win, a 32.3 percent increase over fiscal year 2024. After the capped promotional-credit deduction, online casino taxable gross gaming revenue for the year came to about 528.2 million USD, and that lower figure is what the state’s 18 percent tax rate applied to.

Total online gaming revenue, casino plus sports betting combined, reached 761.3 million USD in fiscal year 2025, up 31.3 percent. Online sports betting contributed 223.9 million USD of that total. For a fuller picture of how licensing and reporting fit together, see the Connecticut iGaming licence requirements guide.

The growth has continued into the most recent reporting period. June 2026 online casino revenue came to 53.1 million USD, compared with 46.3 million USD in June 2025. Full monthly and annual figures are published in the DCP gaming revenue and statistics reports.

Connecticut iGaming revenue by fiscal year since launch

Online casino in Connecticut launched in October 2021, and Connecticut iGaming revenue has grown every fiscal year since. The table below shows online casino gross gaming revenue, the taxable figure the state’s rate applies to, for each fiscal year on record.

Fiscal year 2026 (July 2025 through June 2026) closed with online casino taxable gross gaming revenue of about 645.5 million USD, a run rate well above the prior year. Cumulative online casino taxable gross gaming revenue since the October 2021 launch stands at about 1.99 billion USD, and operators have paid roughly 358 million USD in state tax on that total. Monthly payment records for each operator are published as monthly online casino payment data by the DCP.

How Connecticut reports revenue: amount won versus taxable gross gaming revenue

Two different numbers describe Connecticut online casino revenue, and confusing them leads to reporting errors. The first is the amount won, the gross amount operators collect from players before any deductions. The second is taxable gross gaming revenue, a lower figure that subtracts a capped share of promotional credits operators issue to players.

The cap on that promotional-credit deduction has fallen since launch. From October 2021 to September 2022, operators could deduct up to 25 percent of win. That cap dropped to 20 percent from October 2022 to September 2023, then to 15 percent from October 2023 onward. So as the cap shrank, the gap between the win figure and the taxable figure narrowed too.

Most trackers and industry reports cite the higher win number because it better reflects market size and player activity. That gap matters for anyone tracking Connecticut iGaming revenue year over year, since the trend and the tax base do not move by identical amounts. For fiscal year 2025, the widely quoted 537.4 million USD figure and the 528.2 million USD taxable figure both describe the same period, but only the second one is what the state taxes at 18 percent.

Where the revenue comes from: online casino and sports betting

Connecticut iGaming revenue splits across two products, online casino and online sports betting, each taxed and reported separately. Online slots produce roughly 70 percent of online casino revenue, with table games such as blackjack accounting for about 20 percent and other game types making up the rest. That product mix has stayed broadly consistent since launch.

Connecticut sports betting revenue runs on a separate track from online casino. In fiscal year 2025, online sports betting revenue came to 223.9 million USD. The Connecticut Lottery Corporation operates the state’s online sports betting offer, but it does not hold an online casino licence. Casino play in Connecticut is limited to the two tribal operators described below.

How Connecticut taxes online gaming revenue

Connecticut online gaming tax applies at different rates depending on the product. Online casino gross gaming revenue is taxed at 18 percent for the first five years of operation. That five-year window closes in autumn 2026, so periods after September 2026 move to a rate of at least 20 percent. Online sports betting is taxed at a flat 13.75 percent of gross gaming revenue, with no step-up scheduled.

Operators pay both taxes monthly, calculated on the taxable gross gaming revenue figure rather than the amount won. The tax figures move in step with reported Connecticut iGaming revenue, since payments are recalculated each month against actual results. Each master wagering licensee also contributes 500,000 USD a year toward problem-gambling programmes, separate from the gaming tax itself.

The tax framework traces back to Public Act 21-23, the legislation that authorised online gaming and sports betting in Connecticut.

Who earns Connecticut’s online casino revenue

Connecticut’s online casino market is a duopoly by design. State law limits online casino operation to the two federally recognised tribes, each through one tethered operator. The Mashantucket Pequot Tribe operates through DraftKings, and the Mohegan Tribe operates through FanDuel. There is no standalone online casino licence available to any other operator, and the Connecticut DCP Gaming Division licenses and supervises both tethered arrangements.

Cumulative online casino revenue since launch splits roughly 1.04 billion USD for DraftKings and 942 million USD for FanDuel. FanDuel drew ahead of DraftKings in the most recent fiscal year, though both operators remain close in overall market share. Operators considering entry into a similarly structured market, or evaluating what a tethered arrangement requires, typically start with a gaming licence acquisition service to map out eligibility and timelines before approaching either tribe.

What a negative revenue month means for tax

A heavy-payout month can push an operator’s monthly gross gaming revenue below zero. In June 2026, for example, one online sports betting operator recorded a loss of about 4.9 million USD after paying out large winning bets. A run of favourite winners across a single weekend can produce that kind of swing.

Connecticut’s tax structure accounts for this. The monthly payment due is the greater of the calculated tax or zero, so a negative month produces no tax liability and no credit or refund from the state. The loss carries no forward benefit into the following month’s calculation. Operators managing multi-state tax exposure often rely on ongoing gaming licensing compliance support to track these monthly swings across jurisdictions.

What the revenue figure does not show operators

The headline Connecticut iGaming revenue number is not what an operator keeps. Before any profit reaches an operator’s books, the promotional-credit deduction reduces the taxable base, the 18 percent tax comes off that reduced figure, and the tribal partner takes its share under the tethered arrangement. Platform fees, content licensing costs for slots and table games, payment processing, and marketing spend all come out afterward.

Operators expanding beyond Connecticut face the same layered structure with different numbers in markets such as the New Jersey iGaming market or the Michigan iGaming market, so comparing headline revenue across states without accounting for tax and deduction structure gives a misleading picture of profitability. Accurate monthly reconciliation between win, taxable revenue, and net operator return depends on structured revenue reporting and audit support built around each state’s reporting rules.

Operators weighing entry into Connecticut, or auditing an existing tethered arrangement’s numbers, should book a consultation with DD Consultus before relying on headline figures to size the opportunity.

Frequently asked questions

How much revenue does Connecticut iGaming generate?

Connecticut iGaming revenue reached 537.4 million USD in online casino win for fiscal year 2025, according to the Connecticut Department of Consumer Protection. Total online gaming revenue, including sports betting, came to 761.3 million USD for the same period. Fiscal year 2026 online casino taxable gross gaming revenue rose further, to about 645.5 million USD.

What was Connecticut iGaming revenue in 2025?

Fiscal year 2025 online casino win totalled 537.4 million USD, up 32.3 percent from the prior year. Online casino taxable gross gaming revenue, the figure the state’s tax applied to, came to about 528.2 million USD. Online sports betting added 223.9 million USD in revenue over the same fiscal year.

How is Connecticut online gaming revenue taxed?

Online casino revenue is taxed at 18 percent of gross gaming revenue for the first five years of operation, a period that ends in autumn 2026 and steps up to at least 20 percent afterward. Online sports betting is taxed at a flat 13.75 percent, with no scheduled increase. Both taxes are calculated and paid monthly on the taxable gross gaming revenue figure, not the amount won.

Why do Connecticut revenue figures differ between sources?

Connecticut publishes two figures for online casino: the amount won and a lower taxable gross gaming revenue figure. The taxable figure subtracts a capped promotional-credit deduction, which fell from 25 percent of win at launch to 15 percent from October 2023 onward. Most trackers quote the higher win figure, while the state’s 18 percent tax applies only to the lower taxable figure.

Who earns online casino revenue in Connecticut?

Online casino revenue in Connecticut is earned by two tethered operators, each linked to one of the state’s federally recognised tribes. DraftKings operates for the Mashantucket Pequot Tribe and FanDuel operates for the Mohegan Tribe. Cumulative revenue since launch runs to about 1.04 billion USD for DraftKings and 942 million USD for FanDuel.

Where does Connecticut’s online gaming tax money go?

Online gaming tax revenue flows to Connecticut’s General Fund. Each master wagering licensee also pays 500,000 USD a year separately, funding problem-gambling treatment services and the state’s self-exclusion programme.

Does a Connecticut licence let an operator take players in other states?

No. A Connecticut online gaming licence covers players who are physically located inside Connecticut at the time of play, verified through geolocation technology. Operating in another state requires a separate licence issued by that state’s regulator.