Rush Street Interactive has announced plans to exit Connecticut’s online sports betting market after underwhelming results.
RSI was one of just three operators chosen to offer online sports betting in the Nutmeg State, along with DraftKings and FanDuel.
It signed up to become the Connecticut Lottery Corporation’s official online and retail sports betting partner, while DraftKings and FanDuel teamed up with local tribes.
RSI, which operates the BetRivers and PlaySugarHouse brands, signed a 10-year deal to provide the government-owned lottery corporation with sports betting systems.
However, the figures have been lukewarm, so RSI had decided to dissolve the partnership. It will continue to operate sports betting on behalf of the state lottery until a replacement is selected, which is expected to occur in the second half of 2023.
“We thank the CLC for their partnership over the last two years,” said RSI chief executive Richard Schwartz, who co-founded the company with billionaire Greg Carlin. “We are proud of what we have accomplished together in Connecticut and have enjoyed the relationships that we have built with the players.
“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.”
In January, Connecticut’s sports betting handle reached $167.7 million, but it dipped to $136.5 million in February, while gross gaming revenue fell from $14 million to $8.55 million.
Anyone with open bets at PlaySugarHouse in Connecticut will be paid out appropriately, according to RSI.
