Colorado Sports Betting Revenue Drops More Than 50% Month-Over-Month in February

The Colorado sports betting industry experienced a challenging February with a low win rate and a revenue decrease of over 50% from January, affecting even the top sports betting sites in the state.

Despite the growth in sportsbook handle and revenues year over year, Colorado sports betting had a lackluster February due to the limited NFL events, including only the Super Bowl and the lightly bet-on Pro Bowl.

In February, basketball, including both NBA and college games, played a crucial role in sustaining the state’s sportsbooks, as reported by the Colorado Department of Revenue. NBA bets made up 29% of all wagers accepted in the state, while college basketball was the second most popular sport for betting, representing 4.7% of the total wagering action.

$536.9 million February handle

In February, Colorado sports betting apps and retail outlets saw a total of $536.9 million in sports wagers, marking a 26.31% increase from the previous year. However, this figure represents a 10% decrease from January’s total of nearly $596.7 million.

Wagering activity in the first two months of the year has reached a new record in Colorado. Sports betting sites in the state have accepted $1.13 billion in wagers so far this year, surpassing the previous record of $1.10 billion set in 2022. Despite a slight decrease in February compared to January, it is evident that residents are continuing to make use of Colorado sportsbook promotions.

It is worth mentioning that the Department of Revenue observed a 22% rise in Super Bowl handle from the previous year, reaching $46.4 million.

Revenues dive thanks to ugly win rate

Although the slight decrease in February’s month-over-month handle went unnoticed, the decline in Colorado sportsbooks’ revenues was significant. This was primarily due to a low hold rate of 4.8%, which impacted the state’s overall profits.

In February, Colorado sports betting sites saw a 14% increase in gross revenues, totaling $25.8 million compared to $22.6 million in February 2023. The handle also increased by 26.31% during this period.

Underscoreg revenues in Colorado decreased by almost $28 million, a decrease of over 50% compared to the previous month. In January, there was a record $53.5 million in revenues with a hold rate of 9%.

Traditional casinos in Colorado reported a decrease in revenue, paying out $3.645 million on a total February handle of $3.5 million.

Colorado sportsbooks reported net revenues of $11.7 million after accounting for deductions and promotional credits. A total of $1.3 million in taxes were collected for state and local coffers, which is 68.4% less than the amount collected in January.

In the first two months of 2024, $5.4 million in taxes have been collected from state providers, which is $1.6 million higher than the amount collected during the same period last year.

Football good for bettors, basketball good for books

In February, pro football was the fourth most bet-on sport, generating $18.7 million in wagers. Colorado’s top sportsbooks suffered a $5.5 million loss due to heavy betting on football. In contrast, football brought in $10.2 million in profits for Colorado providers in January from an $86.1 million handle.

Basketball generated almost nine times more bets than football. Professional basketball accounted for $155.5 million of the state’s total February handle, followed by college basketball with $25.2 million, tennis with $20.6 million, and football coming in fourth place.