Connecticut casinos aren’t the only gambling venues with shrinking revenues.
Off-track betting (OTB) revenue in the state is also on a steady slide, newly published state data reveals.
Gross sales across the brick-and-mortar OTB facilities operated by Sportech in the recently concluded fiscal year 2019 totaled $141.4 million. That was down about 7 percent from $152.1 million in fiscal year 2018, and $157.3 million in fiscal year 2017, according to data from the Department of Consumer Protection, the state’s gambling regulator.
Sportech has previously warned that the opening of casinos in Massachusetts and Rhode Island, as well as potential additional casinos in Connecticut, would hurt its revenue, and Sportech Venues President Ted Taylor said Thursday afternoon that the new casinos, in addition to sportsbetting in New Jersey and Rhode Island, are indeed taking their tolls.
“It’s tough for us all, all the licensed gaming operators,” Taylor said. “There’s a lot of competition from nearby states that have authorized sports betting. That’s one of the reasons we’re down.”
Taylor said managers at his venues (there are 15 open around the state after a longtime Bristol location closed down recently) have noticed some customers are betting more often in other states, particularly New Jersey.Â
”Those folks who have kind of a discretionary, fun gaming spend have got other options now,” he said. “So we’ve lost a little bit of ground there.”
As those trends have worked against it, Sportech has pushed for greater protections against unlicensed operators taking online bets from Connecticut consumers, and has asked state lawmakers to include it in any eventual deal to legalize sports betting.
Thus far, the state’s fears over being sued by MGM or the state’s casino operating tribes have stalled any final deal on sports betting in Connecticut. Taylor said that’s been a disappointment for Sportech.
“It’s taken longer than we would have liked, fairly obviously,” he said.
Â
OTB state tax revenue totaled $3.1 million last fiscal year, down from $3.3 million in fiscal 2018 and $3.4 million in fiscal 2017.
Indeed, OTB is far less important to state coffers than revenues from the lottery and casino slots.
While OTB transfers to the general fund declined by $713,000 between 2012 and 2019, tax revenue from slots fell $89 million. Meanwhile, lottery budget transfers increased by $60 million over that time.
The overall trend is a net negative for the state budget, driven in part by the opening of competing gambling venues. Slot machine revenues at Foxwoods and Mohegan Sun have been in decline for 13 consecutive months.
In addition to the state taxes paid by Sportech, it also paid $2.1 million in local taxes to to host municipalities last fiscal year, down from $2.3 million in fiscal 2018.Â
This story has been updated to include comments from Sportech’s Ted Taylor.
