Colorado Underscoregs Report Record Handle, Underwhelming Revenue in November

On Friday, the Colorado Division of Gaming released its November revenue report, showing a new record for sports betting activity in the Centennial State, in line with other U.S. betting states.

Colorado’s sports betting apps and retail providers collectively generated over $600 million for the first time in history, making it the 10th state in the US sports wagering industry to reach this milestone.

In November, Colorado surpassed the $15 billion lifetime handle mark, becoming the sixth jurisdiction to achieve this milestone.

Although there was a high level of sports betting activity in November, Colorado’s top sportsbooks did not generate impressive revenues, primarily due to the state sports betting providers having the sixth-lowest win rate.

Record November handle

In November, Colorado sports bettors set a new record by wagering $608.5 million with state sportsbooks, surpassing the previous high of $573.7 million from January 2022. This marked the ninth instance that Colorado sportsbooks exceeded $500 million in monthly bets during their 43 months of operation, but the first time they reached over $600 million.

The $608.5 million is a 9.7% increase from the $554.9 million reported in October and is 10.1% higher than the $552.6 million from November 2022.

In November, Colorado’s sports betting totals increased year-to-date wagering figures to $4.8 billion, showing a 3.9% improvement compared to the first 11 months of 2022.

Revenues disappoint

Colorado sports betting sites and retail providers in the state failed to take advantage of the record November sports betting handle. The top sports betting sites saw a significant decline in profits compared to previous months and years, mainly due to bettors consistently outperforming the providers in the state.

Colorado sportsbooks reported $28.6 million in gross revenues for November, marking a significant 39.1% decrease from October’s $46.9 million and a 23.9% decline from November 2022’s $37.57 million.

The primary reason for the significant decrease in sportsbook profits in Colorado is the low hold rate. In November, Colorado providers held only 4.7%, which is the sixth-lowest win rate in the 43 months since sportsbooks were established in the state. This is a sharp decline from the 8.5% hold rate in October and the 6.8% hold rate in November 2022.

In the first 11 months of 2023, Colorado sportsbooks have generated $351.4 million in gross revenues, marking a 13% increase compared to the same period in 2022. The taxable revenue has surged by 45.3% during this time, primarily due to the revised promotional deduction rules for state sportsbooks.

In November, Colorado received nearly $1.5 million in taxes from $14 million in net sports betting profits, marking a 55.43% decrease from the previous month. This amount is also roughly $1 million less compared to the same month in 2022.

Colorado’s November tax revenue reached $1.5 million, bringing the year-to-date total to $23.7 million for the first 11 months. This is $6.7 million more than the amount collected by this time in 2022.