Colorado Reports Record Sports Betting Handle in November

The Colorado Division of Gaming November report released on Monday contained both positive and negative updates.

The state achieved a record-breaking level of monthly wagering activity, but faced a significant decrease in revenue compared to the previous month due to a poor sports betting hold rate.

Colorado sports betting apps and retail providers are poised for a record-setting year in terms of handle, with 2023 revenues expected to surpass previous highs. Despite lower revenue totals in November, the industry is on track for a successful year unless there is a major setback in December.

$608.5 million December handle

In November, Colorado sports bettors wagered an impressive $608.5 million with the state’s sportsbooks, surpassing the previous record of $554.6 million set in October. This marks a 9.7% increase from the previous month and a significant 10.1% improvement from November 2022, with nearly $56 million more spent.

In November, Colorado’s top sports betting apps dominated the legal sports betting market in the Centennial State, accounting for 99% of the total handle or $602.9 million. Retail betting, on the other hand, only contributed $5.6 million in total wagers.

Colorado’s sportsbooks saw a total spending of $4.8 billion in the first 11 months of 2023, reflecting a 3.9% growth compared to the same period in 2022.

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Revenues drop 39.1%

Colorado’s top sportsbooks experienced a decrease in revenue despite a record handle. The 4.7% hold rate, the sixth lowest in the state’s history, led to a significant 39.1% month-over-month revenue decline.

The national average hold rate for sportsbooks is typically around 7%, but in Colorado, the average has been slightly higher since the introduction of their legal sports wagering platform. In October, the hold rate was 8.4%.

Colorado’s November report showed gross gaming revenues of $25.8 million and net revenues of $13.9 million. This represents a 39.1% decrease from the previous month and a 23.9% decrease from November 2022’s sportsbook profits in Colorado.

However, there has been a significant 45.3% increase in taxable revenues on a year-over-year basis in the first 11 months of the year, largely attributed to modifications in promotional deductions within Colorado. Colorado’s betting platforms reported a total of $237 million in taxable revenues during this period in 2023.

Colorado state providers only contributed $1.5 million in taxes in November, marking a 55% decrease from the previous month and a 42.3% drop compared to the previous year. The total tax contributions for 2023 reached $23.7 million, significantly surpassing the $6.7 million recorded for the first 11 months of the year, largely due to changes in promotional deductions policies in the state.

Football betting carries the weight

In November, Colorado sports betting providers saw significant gains from football, with the NFL accounting for $151.2 million in wagers. Although NFL betting decreased from 33.4% to 25% of the total handle, college football still contributed $52.1 million to the state’s overall sports wagering handle.

In November, basketball saw significant growth, with its share of the state’s total handle increasing from 11.4% to 23.6%. The NBA accounted for $143.6 million in wagers, while NCAA basketball brought in $37.8 million.

In November, tennis ranked third in popularity for betting in Colorado with $22.7 million in wagers, followed by hockey in fourth place with $19.7 million. Soccer rounded out the top five most popular sports to bet on in the state with $14.7 million.