The latest financial figures emerging from Colorado’s sports betting landscape paint a perplexing picture. February 2023 saw a noticeable year-on-year decrease in revenue, which slid from a robust $35.4 million to a less auspicious figure. Not only did the monthly total fall year-on-year, but it was also a significant 51.8% less than the impressive $53.5 million garnered in January of the same year.
Online betting stood as the primary contributor to gross gaming revenue in February, bringing in approximately $25.9 million. Yet, this number was undercut by a $144,982 loss stemming from retail betting outlets, which nudged the total monthly revenue downward.
This revenue decline unfolds against a backdrop where the total betting handle in Colorado actually experienced an 8.6% uptick from February the previous year, escalating from $494.4 million to $537.0 million in bets placed. Despite this growth, February’s figures couldn’t keep pace with the $596.7 million bet during the more active month of January.
A closer look at the breakdown of bets placed reveals that online wagers accounted for nearly the entirety of the monthly total at $533.5 million, leaving a relatively meager $3.5 million wagered at the state’s retail sportsbooks.
In terms of favored sports, basketball remained the reigning favorite among Colorado bettors in February. The sport attracted approximately $229.8 million in bets, which constitutes an impressive 42.8% of all bets placed during the month. However, other sports managed to carve out their niches as well; tennis bets hit the $47.0 million mark, ice hockey wagers reached $33.0 million, and even with the Super Bowl – the NFL’s grand finale – occurring in February, American football bets were notably lower at $29.4 million.
Other sports saw engagement too: college basketball drew in $25.2 million in bets, soccer gathered $24.7 million, and table tennis surprisingly garnered $12.6 million. It was also noted that parlay bets, a type of wager involving multiple bets and dependent on all bets winning together, had a substantial presence in February’s betting landscape topping $105.3 million.
As for payouts, consumers won a hefty total of $511.2 million from betting on sports in Colorado within the month under review, including a substantial $507.6 million from online betting. These substantial payouts underscore the high level of activity and engagement Colorado sports enthusiasts have with betting platforms.
Turning our gaze to the tax revenues accrued from this flurry of betting activity, the state of Colorado collected $1.3 million in sports betting tax in February. Demonstrating the dominance of the digital domain, nearly the entire tax windfall came from online betting, with retail wagering contributing a paltry $2,509 to the state’s coffers.
These financial revelations serve as a stark reminder that in the world of sports betting, revenue is not strictly tied to the amount of money wagered. Various factors, including the outcome of events, the nature of the bets placed, and bettors’ luck, play a vital role in shaping the overall financial standings of the betting ecosystem.
The storyline of February’s sports betting in Colorado is one of contrast and contemplation — where an increase in overall betting handle does not necessarily equate to a rise in revenue. As the industry continues to navigate the post-pandemic environment, stakeholders will no doubt look to balance patron engagement with sustainable revenue streams to ensure a resilient and thriving betting economy in the Centennial State.
