DFS Giants DraftKings and FanDuel eye May 1 debut in Colorado market
Major League Baseball and the NBA are considering playing their seasons without fans, but all major American professional sports remain suspended due to the COVID-19 pandemic. Despite this, DraftKings and FanDuel, licensed to offer sports betting in Colorado, plan to launch their mobile sportsbooks on May 1.
A spokesperson for DraftKings indicated the company is on track for the launch, citing eagerness to provide Colorado residents with their mobile and online sportsbook on May 1. FanDuel has also confirmed its intention to go live with its Colorado mobile platform on the same date.
The timing of the launch depends on the Colorado Limited Gaming Control Commission (LGCC) having ready-to-use rules and regulations for operators to commence sports wagering. The LGCC has actively been preparing for this, having held special meetings to approve licenses, meeting online since the US economic shutdown in March. According to the LGCC, the May 1 date for legalized sports betting in Colorado will likely be met, given the progress made in adopting rules, approving licenses, and implementing procedures.
DraftKings has partnered with Twin River Worldwide Holdings for mobile access to Colorado's sports betting market, allowing them to operate a retail sportsbook at the Mardi Gras Casino in Black Hawk. FanDuel, while partnered with Twin River Worldwide Holdings for access into Colorado, does not currently possess a retail partnership. Both companies have been approved for temporary licenses by the LGCC.
Colorado voters legalized sports betting via referendum in November, but retail casinos remain shuttered through at least April 30. To date, the LGCC has awarded 23 sports betting licenses, with a potential for up to 33.
Adult Coloradans aged 21 and above can engage in sports betting, with both mobile and retail betting permitted under Colorado law. Online sportsbooks use geolocation technology to ensure users are within state borders. Winnings are subject to taxation at both federal and state levels, with a 4.63% state income tax. Only licensed sportsbooks are allowed to operate in Colorado. The LGCC has recently approved new regulations for exchange betting, possibly influencing future offerings.
With the planned launch of their mobile sportsbooks on May 1st, both DraftKings and FanDuel, operating with licenses in Colorado, are set to begin sports-betting operations, escorting residents into the realm of legalized sports wagering. The Colorado Limited Gaming Control Commission (LGCC), having diligently prepared for this, is poised to meet the May 1st deadline, given their progress in adopting rules, approving licenses, and implementing procedures.
