Colorado experiences a record-breaking month in gaming with handle surpassing $500 million, marking the second-highest monthly figure to date.
In the centennial state of Colorado, sports betting handle reached an impressive $526.6 million for October, marking the third time they've enjoyed half a billion dollars in wagers since the legalization of sports betting. This latest figure falls slightly behind the $573.7 million recorded in January and the only other time they surpassed the $500 million mark was in March with $505.6 million.
The state, now standing as the seventh to exceed $9 billion in all-time handle in the post-PASPA era, and the seventh to clear $4 billion handle for the 2022 calendar year, also saw a reasonably low hold of 6.9%. This equates to $36.5 million in gross revenue for the operators. Although this hold rate ranked second-lowest among the 24 states reporting October numbers, it was still higher than the likes of Nevada (6.2%) and on par with places like Illinois, Arizona, and Wyoming, who were yet to publish their numbers.
In a month where nearly half the revenue came from parlays, the public made notable strides in betting NFL games. Operator revenue for NFL betting dropped sharply to $8.2 million compared to the $16 million in September, although the handle rose significantly by 17.8% to $171.6 million. While the public emerged $1.6 million ahead on $50.4 million in college football handle, the house took the top spots for revenue in NBA betting, baseball, tennis, and soccer.
Year on year, the handle and revenue figures showed a positive trend, rising by 17% and 7.2% respectively compared to October 2021. The adjusted revenue also showed a considerable increase, with the $21.1 million jumping more than double the $9.8 million generated in the same month in 2021.
Looking forward, Colorado's sports betting market is showing promising potential, even though its revenue and handle may not always match the bigger states. The state is expected to generate a total handle of approximately $2.28 billion and gross revenue of about $190.81 million by June 2025, with an average hold percentage of 8.4%.
However, the tax policies on sports betting are subject to change, such as the state's decision to eliminate free bet tax deductions for sportsbooks by mid-2026. This alteration signifies the state's intention to optimize revenue from sports betting. comparison to other states, Colorado's sports betting market is active, but its revenue and handle can vary significantly compared to larger markets like New York and New Jersey, largely due to their larger populations and more extensive sports betting infrastructure.
The key factors impacting Colorado's sports betting revenue include:
- Hold Percentage: Colorado's hold percentage has seen fluctuations, with highs like 9.3% in January and February, and lows like 5.9% in March.
- Tax Policies: Changes in tax policies, such as the elimination of free bet deductions, will influence future revenue calculations.
- Market Size and Competition: While Colorado has a vibrant sports betting market, it remains smaller than more populous states like New York and New Jersey.
- The significant increase in sports-betting handle in Colorado, such as the $526.6 million in October, is partly due to the public's preference for parlay bets, as shown in a month where nearly half the revenue came from parlays.
- Even with the active sports-betting market in Colorado, the revenue and handle can vary significantly compared to larger markets like New York and New Jersey, partially due to differences in market size and competition, and potential adjustments in tax policies, like the planned elimination of free bet tax deductions for sportsbooks by mid-2026.
