Connecticut Online Casino Tax Rises To 20% Starting Oct. 1
- Connecticut taxes online casino gross gaming revenue at 20%, up from 18%, for October 2026 and every later month.
- State law counts five years from the first online casino license and sets no calendar date or end date for the new rate.
- At August’s $58.38 million in gross gaming revenue, two more points would have added $1.17 million to the state’s $10.51 million payment.
- Two off-reservation licensees paid 99.7% of August’s total, and two more points on that revenue would cost them $573,047 and $591,530.
HARTFORD, Conn. – Connecticut’s online casino tax rises from 18% to 20% on Oct. 1, the start of the first month in which licensees’ gross gaming revenue is taxed at the higher rate. The Connecticut Department of Consumer Protection’s online casino gaming data apply the lower rate to revenue through September and the higher one to each month after.
The Statute Counts From The First License
Section 12-866 of the Connecticut General Statutes sets the schedule. Public Act 21-23, which began as House Bill 6451, sets the charge on licensees’ gross gaming revenue at 18% “during the five-year period after the first issuance of a license” and at 20% “during the sixth and any succeeding year.” The text gives no calendar date for the change and no end date for the higher rate.
The department’s data notes supply the calendar. They date the start of online casino operations to Oct. 12, 2021, and they count operating years from October through September, the same years by which the cap on promotional-credit deductions stepped down, to 20% in October 2022 and 15% a year later.
Two Points Cost $1.17 Million On August Revenue
For August, the department’s data show licensees reported $68.68 million in online casino win and deducted $10.30 million in promotional credits, leaving $58.38 million in gross gaming revenue. The 18% rate produced $10.51 million in payments. At 20% the same revenue would have produced $11.68 million, an increase of $1.17 million, or 11.1%.
Over fiscal 2026, which ran from July 2025 through June 2026, payments totaled $116.19 million on $645.47 million in gross gaming revenue. Two more points on that revenue would have added $12.91 million. The base was also growing as the change approached, with August’s gross gaming revenue 17.3% above the $49.77 million reported for August 2025.
The Promotional Deduction Cap Stays At 15%
The deduction for promotional credits comes off before the rate applies, and the department’s notes keep that cap at 15% of win after the second year. August’s payments therefore equaled 15.3% of the $68.68 million in casino win. At 20% the same month would have equaled 17.0% of win.
Two Licensees Pay 99.7% Of The Total
Connecticut’s online casino licenses belong to the Mohegan Tribe and the Mashantucket Pequot Tribal Nation, and the department’s data list four licensee lines. MPI Master Wagering License CT, LLC paid $5.32 million in August and Mohegan Digital, LLC paid $5.16 million, together 99.7% of the month’s payments. The Mohegan Tribe’s on-reservation operation paid $10,363 and the Mashantucket Pequot Tribal Nation’s paid $17,127.
On August’s revenue, two more points would cost MPI Master Wagering License CT $591,530 and Mohegan Digital $573,047. The change alters what those licensees owe, not which legal Connecticut gambling sites may operate.
Sports Wagering Stays At 13.75%
Section 12-867 charges licensees 13.75% of gross gaming revenue from online and retail sports wagering, a rate Public Act 21-23 set with no step-up. The casino rate now sits 6.25 points above it, up from 4.25 points, in a state where legal online gambling is taxed at different rates by product.
The First Payment At 20% Is Due Nov. 15
Section 12-866 gives each licensee until the 15th to pay on the prior month’s revenue, a deadline the department’s data notes repeat. Payments on September revenue, the last at 18%, are due Oct. 15, and the first payments at 20%, covering October revenue, follow by Nov. 15.