The allure of sports betting in Colorado continues to grow, with January 2023 showcasing an impressive surge in revenue for the state. Bettors in Colorado placed a record $596.7 million in sports wagers, marking a significant rise from the previous year, though it fell short compared to December’s high.
The bulk of these bets, an astounding $592.2 million, was placed through online channels, with physical retail sportsbooks contributing $4.5 million. This digital dominance underscores the shifting landscape of sports betting, where convenience and accessibility are paramount.
January’s betting spree was not just about outpacing previous handles. There was a noted leap in gross gaming revenue, reaching $53.5 million, which eclipsed the $35.5 million from the same period last year. Month-to-month comparisons also paint a rosy picture, as this January figure soared 32.1% above December’s $40.5 million—a notable achievement considering the $120 million month-on-month decrease in total wagers.
Online betting once again took the lion’s share of revenue, accounting for $53.3 million. In stark contrast, retail books added a modest $190,394 to the revenue pot. The sharp contrast in the performance of online and retail underscores the prevailing trend of bettors preferring the ease of digital platforms.
Basketball emerged as the go-to sport for many Colorado bettors in January, with the sport drawing in $135.3 million in wagers. This interest likely represents the build-up to the NBA playoffs and the ongoing college basketball season. American football followed with $86.1 million in bets, and college basketball saw an additional $24.6 million wagered—likely influenced by the anticipation of the NFL’s Super Bowl in early February, an event that traditionally garners massive betting interest.
Other sports also saw robust betting activity in the state. Tennis attracted $21.2 million, soccer garnered $14.0 million, and ice hockey chipped in $11.9 million. Such diversity in betting indicates a broad interest across various sports, with seasonal events and tournaments likely guiding betting patterns.
From the vast sums wagered, Colorado’s players won a total of $543.2 million in January 2023—a figure that represents the combination of $538.9 million from online bets and $4.3 million from physical sportsbooks. While the winnings returned to players are substantial, it’s the net revenue that has state officials and stakeholders smiling.
The rise in revenue from sports betting naturally had positive implications for state coffers. Tax contributions from operators hit an all-time high, with $4.1 million paid in sports wagering tax. This influx of funds is earmarked for various state initiatives, further cementing the role of sports betting as a valuable contributor to Colorado’s fiscal health.
Amidst this thriving market, the landscape for sports betting in Colorado is shaped by better performance by operators in January despite a dip in the total wagers from December’s record. The growth in digital betting platforms continues to redefine how bettors engage with sports betting, and with such fiscal positive outcomes, the industry appears poised for continued expansion and success in the future.
As sports seasons ebb and flow, bettors’ interests will likely follow suit, with Colorado’s robust market ready to meet the demand. The state’s foray into regulated sports betting has proven not just successful, but also a testament to the potential this industry holds in terms of entertainment and economic benefit.
