Colorado Sports Betting Revenue Skyrockets in June

In an impressive display of growth, Colorado’s sports betting market saw a substantial increase in revenue, rising by 206.5% compared to the previous year. The boost in revenue is attributed to a significantly improved hold percentage, alongside a surge in betting activities on soccer, aligning with the Copa América’s commencement in the United States.

In June, the total betting handle ascended to $350.4 million, a 12.8% increase year-over-year, as reported by the Colorado Division of Gaming. Of this, a staggering $348.9 million was wagered online, with the remaining $1.5 million bet at retail sportsbooks across Colorado.

Sports Preferences Shifting Among Bettors

Baseball and basketball remained popular choices among bettors, generating handles of $104.5 million and $59.2 million, respectively. However, soccer witnessed a notable rise in betting interest, with amounts wagered soaring to $27.6 million, doubling the previous figures due to the excitement around the Copa América that kicked off on June 20. Moreover, betting on table tennis also saw a notable rise, reaching $15.1 million.

Revenue and Taxes Collected From Increased Betting Activity

After all winnings were paid out, the gross gaming revenue (GGR) for the month stood at $28.2 million, reflecting an 8.05% hold. This was a significant leap from the $9.2 million GGR and 2.97% hold from June of the previous year. The post-deduction net proceeds from sports betting revenue amounted to $19.2 million, up remarkably from just $1.97 million the year prior.

From these net proceeds, the state collected $1.8 million in taxes, thanks to the 10% levy on sports betting revenue. The majority of tax revenue stemmed from online sportsbooks, with a minor contribution of $7,130 coming from retail betting operations.

Year-over-Year Comparisons and Additional Insights

The Colorado Department of Revenue’s recent report highlighted a tripling of last June’s revenue, with substantial gains from events like the College World Series, contributing nearly $1.2 million to the revenue from an 80% hold. Despite a slight decrease from May’s figures, the handle still marked an improvement from the previous year, with nearly the entirety of it coming through mobile betting apps.

The adjusted gross revenue eligible for state taxation summed up to $19.2 million, directing substantial funds into state coffers. The first half of the year’s tax collection has already outpaced the previous year by over $3 million.

In of sports specifics, NBA-related revenue significantly favored the operators this June, netting $3.9 million with a 6.6% hold, a stark contrast to last year’s payouts. Additionally, revenue from the College World Series notably increased, marking the third consecutive year that betting on college baseball exceeded $1 million in June.

Source:

Colorado Sports Betting Proceeds June 2024 [pdf], Colorado Division of Gaming, July 29, 2024.