Colorado Experiences Deficit in Sports Betting Income for June
Colorado Sports Betting Market Experiences Monthly Fluctuations
In a surprising turn of events, the Colorado Department of Revenue reported a negative adjusted revenue total for sports wagering in the month of June. This marked the single-largest monthly loss for any category since legal wagering began, exceeding $4 million.
Despite the loss, the overall handle in Colorado reached a new record, totaling nearly $106.5 million in bets. Gross revenue, however, saw a significant increase of 30.6%, despite the 5.4% win rate being more than one full percentage point lower compared to May.
The decrease in revenue can be attributed to a few factors. One such factor is the variation in hold percentage. The percentage of handle that sportsbooks keep as gross revenue (hold %) dipped to 5.4% in June, which is lower than the average hold rates seen in other months. A lower hold rate can reduce sportsbook revenue despite stable betting volume.
Another contributing factor could be the seasonality and popularity of sports. The variations in the popularity or scheduling of major sports events likely influence handle and revenue monthly. For instance, basketball led wagers in May with close to $44.1 million in wagers, but in June, the betting public sent the house to its first monthly loss.
Market competition also plays a role in the monthly fluctuations. With 13 online sportsbooks in Colorado as of mid-2025 and new entrants like Hard Rock Bet launching recently, increased competition might impact sportsbook margins and revenue strategy, potentially lowering hold percentages to attract customers.
It's important to note that Colorado's sports wagering market has shown healthy revenue growth year-over-year, with no clear evidence of sustained negative revenue. The market's overall handle is 59.8% higher compared to the first six months of 2021.
In other categories, table tennis handle continued its rebound, jumping 42.8% from May to close to $4.2 million. However, the win rate was more than five full percentage points lower, causing a 75% plunge in gross revenue. The loss was in the "other" category, with the exact impact less certain.
Interestingly, the parlay revenue claimed by operators in June was the lowest since July 2021, with a 6.8% win rate, the lowest in state history.
Despite the monthly loss, Colorado still cleared $1 billion in handle for the third consecutive quarter, with the total also 47.4% higher than the second three months of 2021. Colorado is not in the top 5 states by sports betting handle for the month of June, with New York leading at $1.06B.
Despite the monthly fluctuations, Colorado's sports wagering market remains a growing industry, with the adjusted revenue being down 1.8%, but the varying tax rates for retail and online revenue have allowed Colorado to collect nearly $760,000 more in taxes the first half of this year compared to 2021.
[1] Colorado Department of Revenue, Sports Betting Report, June 2022. [2] Colorado Division of Gaming, Sports Betting Report, June 2022. [3] Colorado Limited Gaming Control Commission, Sports Betting Market Analysis, June 2022. [4] Internal Revenue Service, Publication 505, Tax Withholding and Estimated Taxes, 2022.
- The parlay revenue claimed by operators in June was the lowest since July 2021, with a record-low 6.8% win rate.
- Market competition, such as the increasing number of sportsbooks and new entries like Hard Rock Bet, might be affecting sportsbook revenue and hold percentages.
- In June, the betting public sent sportsbooks a negative adjusted revenue total, marking the single-largest monthly loss in any category since legal wagering began, and this loss was partially due to a lower hold rate and the popularity of sports.
