Sportech has noted that its activity as one of a limited number of sports betting licensees in Connecticut is paying off, as handle has grown in the first four months of 2023.
The London-listed firm has a distribution agreement with the Connecticut Lottery Corporation to provide retail sports betting as well as runs sports bars and betting venues across the state, in which it also has exclusive rights to offer pari-mutuel betting.
Offering investors an update on recent trading, Sportech exerted “optimism” for the future and reaching its full-year financial targets, with retail betting handle improving in recent months.
It noted that handle across its operations grew by 5.3% year-over-year to $68.7m. This was broken down by a 16.7% growth in sports betting in its retail venues, totaling $36.4m whilst pari-mutuel betting was down by 5.2% to $32.3m.
Richard McGuire, Executive Chairman, said: “We are delighted to share the news of our strong start to the year, which can be attributed to the outstanding efforts of our management team.
“By capitalizing on our exclusive pari-mutuel betting license, we have successfully tapped into a new demographic of sports betting enthusiasts, opening up valuable cross-selling opportunities.
“The addition of sports betting as part of our product range has played a pivotal role in ensuring the financial stability of our Venues and paving the way for fresh avenues of growth.”
This comes amid a shakeup of the sports betting industry in Connecticut in which Rush Street Interactive and the CLC mutually agreed to terminate their partnership.
With the CLC’s partner unable to offer online casino products, as per the state regulations, RSI saw the deal as a less attractive deal than other states, particularly given that the other two operators, FanDuel and DraftKings, are allowed to offer online casino games.
The lottery currently has a request for proposals out and is hoping to strike a deal with a new operator – likely to be a white-label brand – by the end of the year.
Sportech, however, is more than happy to oblige in its part of the deal and is excited to welcome the new operator to the fold.
McGuire added: “Our entire team is unwavering in our commitment to enhancing our business and delivering maximum value to all stakeholders involved.
“With great anticipation, we look forward to collaborating with the new Connecticut sportsbook provider as we approach an exciting period brimming with potential for collective success.”