Rush Street Interactive walks away from Connecticut Lottery partnership
BetRivers and PlaySugarHouse operator to end sports betting operations from H2 as CLC goes shopping for new partner
Rush Street Interactive (RSI) and the Connecticut Lottery Corporation (CLC) have confirmed they will end their retail and online sports betting partnership in Connecticut during H2 2023.
The duo inked a 10-year partnership in August 2021, ahead of the formal launch of online sports betting in the state in October 2021.
However, the deal will end early with RSI continuing to operate both in-person and online sports betting in the Constitution State until a replacement is appointed by the CLC.
It is understood that the CLC will soon begin a selection process for a new operator partner in the coming weeks, with a proviso that existing sports betting operations will transition to the new firm during H2 2023.
RSI CEO Richard Schwartz paid tribute to the CLC in his remarks, citing the accomplishments of the pair in the state, as well as the player bank they had built up over the last two years.
“Consistent with our long-term strategic goals, after much deliberation and discussions with the CLC, we believe it is in the best interest of RSI and our stockholders to wind down this partnership,” he said.
Schwartz continued, “As is consistent with nearly everything we do at RSI, both RSI and the CLC remain committed to putting our players first.
“Through the transition we plan to continue to support all player wagers and ensure a positive player experience and expect the changeover will have an immaterial impact on our guidance for 2023,” Schwartz added.
CLC president Gregory Smith echoed his opposite number’s tributes, hailing the contribution of RSI.
“We thank RSI for working closely with CLC to establish the foundation for CLC’s sports betting operation, both online and in retail,” Smith added.
RSI is one of just three sports betting operators in the state, with DraftKings and FanDuel each partnered with tribal gaming operators the Mashantucket Pequot Tribe and the Mohegan Tribe respectively.
The possibility of gaining access to such a small market could prove to be enticing for prospective operators, especially given the state’s 13.75% tax rate, one of the smallest in the region.
However, with two of the biggest operators in the US in FanDuel and DraftKings already entrenched and commanding a massive share of the state sportsbook market, profitability could be a hard task.