The Connecticut Lottery Corporation named Fanatics Betting and Gaming as its new sports betting partner Friday, completing an eight-month process and securing a commercial provider to operate the state lottery’s mobile and retail sportsbook channels.

Fanatics’ entry into the Nutmeg State thrusts the upstart sportsbook into direct competition with DraftKings and FanDuel, which dominate market share in the New England jurisdiction. Upon Fanatics’ launch, the trio will be the only operators with market access in Connecticut, a state that is located within shouting distance of New York City. It’s also home to the University of Connecticut, whose Storrs campus is located less than 100 miles from the Boston Harbor.

“Fanatics is the only true sports brand in the gaming space and has established itself as an innovator in the industry,” said Greg Smith, president and CEO of the Connecticut Lottery Corporation (CLC). “We have been impressed with the Fanatics team, their aggressive entry into the U.S. sports betting market, and we are excited to see how they redefine the sports betting customer experience here in Connecticut.”

The CLC began the process for a new sportsbook provider in April, weeks after Rush Street Interactive pulled out of a 10-year partnership.

UConn captured its fifth national championship in men’s basketball this April with a dominating run through the NCAA Tournament. On the eve of the Final Four, the CLC disclosed plans to wind down its online and in-person sports betting partnership with Rush Street.

Rush Street, the parent company of Play SugarHouse Sportsbook and BetRivers, received one of the Connecticut online betting skins through the deal with the Lottery. But after defeating a host of other top sports betting sites to win that contract, most notably BetMGM and Caesars, Rush Street pulled out less than three years into the deal. In fiscal year 2022, Rush Street generated about $20 million in net gaming revenue from retail and online sports betting in Connecticut.

Last year, the three Connecticut sportsbooks generated about $136 million in gross gaming revenue, with Rush Street maintaining a market share of about 15%.

Nevertheless, Smith indicated that the CLC anticipates “notable market share growth” as a result of the Fanatics partnership. As of Friday, Play SugarHouse generated 2023 sports betting gross gaming revenue of $9.4 million on handle of $123.2 million. The figures represent an annual increase of 23.4% and 8.2%, respectively, from 2022.

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While Fanatics did not publicize its interest in bidding for the contract, there were indications over the summer that the sportsbook had interest in entering the state. The CLC initially planned on opening 15 retail sportsbooks statewide, but closed several locations that produced lower than expected volume. A VIP bettor, who spoke to Sports Handle on the condition of anonymity, received a tip in July that several Fanatics representatives visited a location in Shelton, Connecticut. There, the officials observed several kiosks at Arooga’s Grille House & Sports Bar, one of 10 Connecticut Lottery sports betting locations.

Fanatics CEO Michael Rubin has set an ambitious goal of becoming the nation’s largest sportsbook. Unlike traditional sportsbooks, Fanatics has the ability to integrate other offerings such as merchandise and NFTs with its sports betting platform. Since its rollout of a mobile sports betting app, Fanatics has unveiled an innovative FanCash program that rewards customers with promotional points on their bets.

“We are excited to be working with the CLC to bring the Fanatics Sportsbook to customers in Connecticut,” said Ari Borod, Fanatics’ chief business officer. “We are looking forward to bringing the Fanatics experience to the retail locations throughout Connecticut and more importantly, adding our innovative mobile app to the online choices available in Connecticut.”

The CLC opened a retail sportsbook at the XL Center in Hartford in September, a project that was delayed approximately a year by a litany of supply chain issues. The $5 million sports bar and betting venue includes more than 80 TVs and a 100-foot long video odds board. The arena hosts select men’s and women’s basketball games and is the home of the American Hockey League’s Hartford Wolfpack.

Another strong season by UConn could bolster handle at the book. The No. 4 Huskies (7-0) face No. 5 Kansas on Friday in a matchup of the last two national champions.

Fanatics made its retail sports betting debut in January with the opening of a sportsbook at FedEx Field, the home of the Washington Commanders. The NFL stadium is located in Landover, Maryland, outside the nation’s capital. Fanatics generated $13.7 million in Maryland sports betting handle last month (3% market share), up from about $12 million in September. Asked by Sports Handle on Thursday to describe sports betting activity inside the stadium, Commanders owner Josh Harris provided little detail, responding that it is a better question for Rubin. Harris and Rubin formerly partnered in ownership of the Philadelphia 76ers before Rubin divested his stake to conform with NBA rules.

Although the CLC did not divulge the number of bidders for the contract, the Lottery told Sports Handle that it had been “pleased with the quality and quantity of the respondents.” It is unclear if ESPN BET formally submitted a bid. With ESPN’s worldwide headquarters in Bristol, speculation intensified this fall that the new sportsbook would pursue the contract. ESPN BET, however, may have been too late to the game.

The CLC did not indicate if it will pursue a separate daily fantasy sports launch. Initially, the lottery sought a provider for a DFS solution in April.

The expected transition date for Fanatics’ sports betting rollout in Connecticut will come in mid-December, the company said Friday.

Chris Altruda contributed to this article.