On one hand, companies are generally allowed tax deductions for advertising costs, on the other hand, the online gambling companies are essentially being compensated to draw in new gamblers, with potentially bad results, particularly for those who may find themselves with a gambling problem. But the promotions can range into the thousands, according to the advertisements, provided new users sign up or current users opt into specific promotions. Draft Kings, which contracted with Foxwoods, for instance, offers new users $200 in credits if they place a $5 bet on a college football or NFL game.įanDual Sports Book, which has contracted with Mohegan Sun, has a similar promotion, offering $150 in free bets after a $5 bet for new customers. The gambling promotions are up and running and online betting platforms are pushing them through advertising. The promotional deductions amounted to $7 million in foregone tax revenue to the state, or 25 percent less to the state’s General Fund. Online casino gaming data shows gaming promotions over the course of 2022 has resulted in $29.8 million in deductions, for a tax loss of $5.3 million.ĭuring that same time period, the state took in $27.7 million in tax revenue from online sports wagering and casino gaming, according to the open data numbers. For instance, for the month of May 2022, sports wagering through Mohegan Digital, LLC saw $4.9 million in sports betting revenue and deducted $1.2 million in promotional bets for a total taxable revenue of $3.7 million, which net the State of Connecticut $513,930.īut the promotional deductions for online sports wagering and online casino gaming add up to big numbers over the course of a year.Īccording to Connecticut’s open data website, from January to July of 2022, sports wagering promotion deductions through Mohegan Digital, LLC, the MPI Master Wagering License CT, LLC and the Connecticut Lottery amounted to $12.4 million, meaning a $1.7 million loss for the state.įor online casino gaming revenue, the promotional deductions and foregone tax revenue is larger.

Online sports gambling connecticut