Colorado Raked in $50 Million from Sports Betting in September
Colorado Experiences Unprecedented Month in Sports Wagering
The Colorado Department of Revenue reported a record-breaking $51.3 million in gross sports betting revenue for September, marking a significant surge in the state's gambling industry. This figure far surpassed August's revenue of $25.9 million and beat the previous standard set in November 2020.
Colorado is the eighth state to exceed $50 million in sports betting revenue. Indiana and Virginia joined the ranks for the first time, while 14 states established new all-time records. The state's 11.4% win rate was the highest in nearly three years and was exceeded only by New Jersey, New Hampshire, and Nevada for the month.
The NFL season's beginning served as an opportune time for operators to offer promotions, leading to a total of $19.7 million in deductions - the fourth-highest amount on record. Despite the operators' lavish offers, September handled more than $450 million, making it the sixth-highest total to date.
September's handle surpassed the $505.6 million in wagers accepted in March, making it the first time handle surpassed $400 million since then. Colorado took in nearly $3 million in tax receipts for the month, marking the first time the total exceeded $2 million since launch. The state has generated close to $12.2 million in tax revenue in the first nine months of the year, significantly ahead of last year's pace.
Colorado uniquely offers sport-specific breakouts for professional and college football. For the first three weeks of the NFL season, the house recorded an 11% hold, the highest in-season percentage to date. This success stemmed largely from parlay bets, with a staggering 24.9% hold on nearly $75.3 million in handle.
The house's win rate for parlays has been improving steadily this year, posting an all-time high in September. In contrast, bettors held their ground in the first eight months of the year, with the house's win rate held below 10%. The surprising rebound in September resulted in a record win rate in the category, overtaking the 22% from October 2020 and marking the third time it surpassed 20%.
Other significant revenue generators in September included baseball, college football, tennis, and soccer. Baseball generated nearly $4.7 million in revenue on more than $83.2 million in wagers, while college football yielded about $4.2 million on a $52.7 million handle. Tennis generated $3.1 million, marking the first double-digit win rate since June 2021, and soccer provided an additional $1.7 million.
Table tennis provided one of the few bright spots for bettors, with a below-5% hold for the first time since October '21. Despite the limited revenue, all-time revenue from bets in the niche sport is just shy of $15 million.
Year-over-year comparisons reveal some quirks. The hold on gross revenue in September 2021 was less than half that of this year, largely due to aggressive promotional spending. Despite the same period seeing a slight decrease in total deductions and promotional spend, the adjusted revenue increased 17-fold, and tax receipts six-fold.
While the NFL season's start and favorable promotional strategies may have contributed to Colorado's record-breaking revenue, steady market growth and increased betting activity during major sporting events are likely significant contributing factors. The combined effect of these factors has propelled Colorado's sports betting industry to new heights.
Operators in Colorado capitalized on the NFL season's beginning to offer enticing promotions, leading to a significant increase in sports-betting revenue, particularly in parlay bets, which generated a record-breaking 24.9% hold on nearly $75.3 million in handle. This surge in revenue, along with increased betting activity during major sporting events, has propelled Colorado's sports-betting industry, with sports such as professional and college football, baseball, tennis, and soccer being notable revenue generators.
