Second-Best Hold Rate Ever Aids Colorado Underscoregs in May

In May 2024, our top sports betting sites saw mostly positive developments. Revenues and overall monthly betting activity increased compared to the previous year, as did revenue figures month-over-month. The only significant metric that saw a decline was the handle in comparison to April.

The Colorado Department of Revenue released a report on Thursday showing that the state’s sports betting market had the second-highest win rate ever recorded. The 10.1% hold in May contributed to strong revenue figures and was only surpassed by the 11.4% win rate in September 2022.

In the last 20 months of operation, Colorado sports betting apps and retail sites experienced their highest hold rate of 22.5% on parlay markets, significantly boosting the state’s revenue.

$447.6 million May handle

In May, sports bettors in Colorado wagered a total of $447.6 million, ranking the state as the seventh-highest-grossing sports betting market. Several major jurisdictions have not yet released their monthly numbers, but residents in Colorado are still making the most of sportsbook promotions.

It shows a 16.2% rise from the $385.2 million reported in May 2023, but is 12.2% lower than the April figure.

The handle total in Colorado for the year so far increased by 18.2% year-over-year to $2.68 billion after May’s figures were released.

Revenues a pleasant surprise

In May, Colorado sportsbooks generated nearly $45 million in gross sports betting revenue, with a 10.1% hold, the second highest in state history. Our top sportsbooks performed strongly during the initial month of the spring/summer lull.

The increase from the $32 million reported in April, when the hold rate was 6.3%, to $45 million in May represents a remarkable 40.5% month-over-month improvement. Additionally, this is a substantial year-over-year revenue increase from the $31.4 million reported in May 2023.

In May, Colorado sportsbooks saw an adjusted gross revenue of $33.5 million, marking a 74% increase from the previous month and a 52% growth compared to the previous year.

Colorado’s top sportsbooks have seen a 14.3% increase in adjusted gross revenue for the year, totaling $134.6 million from January to the end of May compared to the same period last year.

AGR contributed $3.2 million in taxes to Colorado state and local coffers, bringing the year-to-date total to $13.4 million. This marked a $1.7 million improvement from the pace set in the first five months of 2023.

Parlay wagering does the heavy lifting 

The Colorado Department of Revenue does not disclose specific operator handles or revenues, but its report provides a detailed breakdown of wagering activity across different markets.

Parlays generated the majority of Colorado sportsbook revenues in May, bringing in $20.9 million from a total handle of $93.1 million on multi-leg bets. The significant revenue was attributed to a 22.5% win rate on parlay wagers.

In May, basketball made a significant impact on the state’s finances. Despite the Denver Nuggets’ early elimination from the NBA playoffs, basketball wagering saw a 54% increase year-over-year. Colorado providers generated $147.5 million in basketball wagers, resulting in $7.9 million in revenues.

Despite the Colorado Avalanche’s early exit, hockey bets accounted for $24.2 million of the state’s total May handle and brought in $3.4 million in winnings for Colorado sportsbooks, nearly tripling last year’s $1.14 million in May hockey revenues.

In May, baseball betting accounted for $92.3 million in wagers and resulted in $3.8 million in operator profits. Additionally, $19.6 million of Colorado’s betting activity came from “other” sports such as golf, tennis, combat sports, and motorsports, marking a nearly $3 million increase from the previous month. Overall, these sports generated $1.7 million in revenue for the month.

Table Tennis betting in Colorado has garnered attention, with $13.9 million in bets and nearly $1.2 million in revenues in May. Colorado sportsbooks have now accepted over $400 million in table tennis bets since its launch, with May’s totals included.