CT lottery moves fast to decide sports betting partners
Heads-up: Any company interested in partnering with the state lottery CT Sports betting must quickly make their stance known.
The Connecticut lottery published its application for qualification regarding potential sports betting partners Monday. All responses are due April 23 at the 3 pm Local time that doesn’t leave much time.
The reason for the accelerated RFQ phase is the hopeful quick start of sports betting in Connecticut:
“There is hope to start sports betting in Connecticut early in the NFL season,” said Lottery Chairman Rob Simmelkjaer said LSR. “That was formulated by the governor, by the leaders of the tribal nations who will be our partners in beating the rivals in the state.
“It’s an aggressive timeline – I’m not sure it’s going to happen. But we have created a timeline that at least leaves this possibility open. “
What does an ideal CT sports betting partner bring?
No specific assessment guideline is set in the request. The Connecticut Lottery will take a holistic view of each bid and decide on the entire package, Simmelkjaer said.
However, there are a few key factors that should be considered:
- product “Is very high” in terms of importance, said Simmelkjaer. That’s not just the app itself, it’s the pricing, too, he added. “We will be a market with three competitive entities, so we expect the pricing structure to be competitive and fair,” said Simmelkjaer.
- Along with product and pricing will Customer acquisition and Retention.
- Operating Sports betting in retail: Ideally, everyone in Connecticut has a retail sportsbook within one 30 minutes driveSaid Simmelkjaer. “Retail is important,” he added. “We spent a lot of time thinking about and working on this deal with the administration and the tribes.”
- Responsible gaming
The only limiting factor in who can apply is the operation in a at least three Jurisdictions whether US or international. Because it’s a B2B operator and routinely powers more than one sportsbook in a state, warehouse could still offer despite his partnership with Mohegan.
If DraftKings Sports Betting can apply depends on his status with Foxwoods Casino. Simmelkjaer noted that DraftKings partnered with the Mashantucket Pequot Indians in December and he expects the two to work together on CT Sports Betting.
Connecticut sports betting schedule details
The most recent agreement between Governor Ned Lamont and state game tribes set up CT sports betting as follows:
- Sports betting income is taxed at 13.75%.
- Mohegan (partner of Kambi), Mashantucket Pequot (partner of DraftKings Sportsbook) and Connecticut Lottery get online skins.
- In addition to its online sports betting, the lottery can also operate 15 sports betting outlets. The current provider Sportech can sublicense these locations.
- The lottery will establish retail sports betting in Bridgeport and Hartford.
- The term is 10 years with the option to extend it for a further five years.
The plan still requires some legal approvals of certain regulations.
The Connecticut Lottery expects a strong share of sales
Add the Connecticut Lottery to the list of northeastern states interested in a healthy share of sports betting income:
“We want to be very competitive in terms of revenue sharing, no question about it,” said Simmelkjaer. “We believe that although we are not a monopoly, there are only three routes into this state, it is an attractive market. It is a market, especially for companies that have access to neighboring countries. The customer acquisition will possibly show a certain efficiency gives us an argument for a very high revenue share.
“And we also feel like Connecticut Lottery with our brand and reach when it comes to people in the state – we have nearly 3,000 retailers in the state. They won’t all take on sports betting, but they are all touchpoints that we can potentially use to attract customers. We therefore expect that we will be a very good partner in our own marketing and how we help each partner acquire customers.
“All of these things together – not to mention our exclusive retail rights across the state – we believe that all of these things have enabled us to get a very strong share of sales.”
DraftKings received the exclusive rights for sports betting in mobile and retail New Hampshire by offering at least a 50% Distribution of sales. Governor Andrew Cuomo designed his NEW Sports betting model based on New Hampshire and expects a minimal breakdown of 50%.
The more focus on nearby states, the better
Simmelkjaer pointed out the media markets around Connecticut and how those advertisements can support the lottery’s eventual program.
The tender mentions that the CT Lottery is interested in market access details and plans. This includes the emphasis on surrounding states including New Jersey and New York.
“There are certainly some efficiencies that can be made by a company that is heavily invested in media in the New York market, and many of them are expected to reach New Jersey by now,” said Simmelkjaer. “If you are now trying to reach the New York market, and part of our state is also in that media market, it is certainly a potential success factor for the development of the Connecticut market.”
Several more steps in the CT sports betting process
The Connecticut lottery moves fast. The RFQ outlines of formal proposals are due 10th of May, start with presentations April 27. Much remains to be done, however, to legalize CT sports betting.
First, several legal acts have to be approved by the state parliament. The contracts with the Mashantucket Pequot and Mohegan Indians will then need to be amended and approved at the federal level. Finally, the provisions for sports betting need to be drawn up and finalized.
The deadlines in the request could be extended if the start date is postponed. But if the start of the NFL season remains the goal, Simmelkjaer expects the bidders to be ready.
“We believe most likely bidders are companies that do this all the time. They know how to deal with these things, so we expect to hear from people who can handle the timeline, ”he said.