Colorado’s Sports Betting Revenue Jumps 10% in September

Colorado sportsbooks witnessed a notable uptick in betting activity this September, recording a handle of $562.9 million—a 10% increase compared to $512.8 million during the same month in 2023. With more than $350 million placed on football and parlays, these two categories alone ed for the majority of wagers. Parlay bets in particular saw a substantial rise in popularity, now comprising 24% of all wagers, an increase from 19.4% in September of the previous year.

Record Gross Gaming Revenue for Colorado Sportsbooks

Gross gaming revenue (GGR) reached new heights, with Colorado sportsbooks generating nearly $55.1 million for the month. This figure represents a significant increase from September 2023, when GGR totaled $45.3 million. This September’s 9.8% hold rate for sportsbooks reflects a gain from the previous year’s 8.8%, demonstrating improved profitability for operators in the state.

Despite Colorado’s established presence in the U.S. sports betting landscape, operators remain committed to incentivizing customers. Promotional spending reached $13.5 million this September, slightly above the $12.8 million recorded last year. This continued investment highlights operators’ willingness to capture bettors’ interest, even in a market where growth might traditionally slow over time.

While September marked an active month for betting, Colorado has seen some sportsbooks exit the market. In recent months, operators such as Betsafe, SI Sportsbook, BlueBet, SuperBook, and Sahara Bets have ceased their Colorado sports betting operations. Despite these departures, the state’s sports betting tax revenue remains strong, generating just over $4 million for September alone.

This rise in tax revenue comes at a critical time for Colorado, as voters prepare to decide on Proposition JJ in the election. This referendum proposes removing the $29 million cap on annual sports betting tax revenue, allowing the state to fully benefit from the 10% tax imposed on operator revenue after promotional deductions and federal excise tax are applied.

Proposition JJ, if ed, would lift the current cap on tax revenue generated from sports betting, enabling Colorado to retain all revenue collected beyond the existing $29 million limit. The cap has become a point of contention as promotional deductions have decreased. In 2022, Colorado legislators introduced changes that phased out unlimited promotional credits, leading to an eventual cap of 2% by July 2025. As a result, the state earned an additional $2.8 million over the cap, which would typically be returned to operators under current rules.

There has been no organized opposition to Proposition JJ, and if approved, the amendment would allow Colorado to retain the entire tax revenue collected, aligning with the state’s recent adjustments to promotional credit deductions.

Source:

”Football season helps push Colorado revenue to $563M for September”, sbcamericas.com, October 31, 2024.