-
Casinos for you
Colorado Crosses $3 Billion in Lifetime Sportsbooks Handle
By Jeff Osienya Sep 29, 2021 IndustryAfter just 16 months of legal sports betting activity, Colorado’s sports bettors have spent a total of $3.2 billion in wagers. Today, we take a closer look at the state’s sports betting numbers, with a focus on August’s performance.On Monday, Colorado’s Department of Revenue announced that the state’s online and retail sportsbook processed a total of about $212 million worth of sports bets in August. This was a 64.7% jump year-over-year compared to the $128.6 million handle that the Centennial State saw in August 2020 and 16.9% more than the $181.3 million betting volume for July 2021.
As impressive as the August sports betting performance, the figure was even more significant as it took the state past $3 billion in lifetime handle. Overall, Colorado sports bettors have spent a total of $3.2 billion on sports wagers in 16 months since the activity was legalized within state lines in May 2020.
As a result, the Centennial State is now the sixth USA state to bring in lifetime bets worth over $3 billion, joining Indiana, Illinois, Pennsylvania, Nevada, and New Jersey in the incredible feat. It’s also worth pointing out that the Centennial state is the fourth fastest state to achieve the $3 billion milestone, ahead of Indiana and Pennsylvania. The two states took 21 and 22 months, respectively, to rack up the same betting volume.
Ian St. Clair, an analyst for the PlayUSA network, voiced his sentiments about the performance, saying:
Quote“It’s encouraging to see a bump ahead of the most important four-month stretch of the year. A mere taste of football in August showed its importance to sportsbooks. But what we saw last month is merely a precursor for what we expect for the final four months of the year, which should bring an onslaught of fresh records.”
Win-Win for the State Coffers and Licensed Sportsbooks
As for the gross gaming revenue (GGR), August’s stellar sports betting activity brought $15.2 million in revenue for sportsbooks, 102.5% more money than the $7.5 million the operators saw for the same month last year. However, looking at a month-over-month comparison, the GGR slid by 2.7% against the $15.7 million Colorado operators collected in July. This reduction occurred due to the 7.19% win rate sportsbook experienced last month.
If we factor in the promotional credits that sportsbooks offered to patrons, the net proceeds for Colorado operators become $7.1 million, which in turn generated $726,365 in taxes for the state. Since the Centennial State opened doors for regulated sports betting, sportsbook operators have accrued a GGR of $213.1 million, a sum that has injected $10.2 million for Colorado’s tax coffers.
Eric Ramsey, another analyst for the PlayUSA network, projected an even better performance for Colorado’s sports betting in the fourth quarter of 2021. He said:
Quote“Colorado is remarkably consistent and continues to outperform the size of its population base. With even a decent football season, sportsbooks will reach $3 billion in wagers and $200 million in revenue for the year. Those would be impressive annual totals for a state that is still maturing as a sports betting market.”
Ramsey’s estimates are pretty sharp, given that last year, even with the raging pandemic, the Centennial State managed to collect a total of $1.19 billion in sports wagers from May to December. Given that the ten-figure handle was possible within 8 months, half of which were impacted by lengthy sports hiatus, this year’s more promising sports calendar will likely bring in more dollars for Colorado.
Baseball Led the Pack for Most Wagered Sporting Events
Moving on to the volume of wagers from a sport-by-sport angle, baseball reigned champion yet again. The sport recorded the highest handle at $69.6 million, a 16.19% uptick from the $59.9 million spent in July. Owing to the traditionally slow month, professional football came in second with a total handle of $13.6 million, an impressive jump from July’s $586K handle. On the other hand, College football drew an extra $2.6 million in sports bets for August.
Besides baseball and football, the other sports which attracted significant betting activity in August are tennis, soccer, basketball, and tennis. Their handles were worth $13.5 million, $11.5 million, $10.6 million, and $8.1 million, respectively.
From his analysis of Colorado’s sports betting market thus far and its potential for Q4 2021, St. Clair added that:
Quote“The difference between a great football season and a merely very good fall for sportsbooks may come down to how local teams fare. If there is a concern for operators, it is that Colorado, Colorado State, and Air Force each had significant missteps to open the season, which could dampen some enthusiasm. But the Broncos’ hot start will likely more than make up for that. If the Broncos can continue to play well, it could really drive sports betting to new heights.”
After more brands like Barstool and the Sports Illustrated Sportsbook recently entered Colorado, the state currently enjoys the presence of a total of 26 online sports betting operators. This makes Colorado home to the highest number of internet sportsbooks across the USA. Of course, the large number of operators is also expected to do even more wonders for the state’s sports betting performance in the future.
You might also like