Colorado is turning into a massive sports betting state in the western portion of the country. CO betting has been live for just over a year, but the state has displayed massive sports betting numbers. The combination of avid sports fans, numerous sportsbooks, and major professional sports franchises has helped the state quickly rise to prominence.
The critical thing to note with CO is that the state is continuing to grow at a rapid rate in the national betting industry. In May, the state’s handle rose 1.8% from April. This may not be a massive increase, but the constant growth in the state is what has the industry buzzing.
May Handle in CO
The CO handle hit $248.97 million in May, which was up from the $244.5 million figure posted in April. Colorado betting is driven by mobile wagering, and this is one reason why the market was able to combat the COVID-19 pandemic last year.
The mobile handle was $246.49 million, which means that 99% of bets were placed through the internet in CO. The state has many attractive retail sportsbooks, but the size of the state has caused people to wager from their devices.
The state gaming industry does not have an issue with this because numbers are continuing to rise. As a result, more providers have begun trying to secure market access in the state to take a share of the market.
The mobile handle rose 1.9%, which was approximately a $4.5 million increase. However, a large handle does not always mean that the revenue will follow the same trajectory. This was the case in the state during the month.
Basketball was the most wagered sport in the state, accounting for 35% of the total handle. Baseball and hockey followed as the remaining major sports on the lists. Table tennis and soccer rounded out the top five sports for May. The category of “other” and parlays accounted for over $60 million in the handle.
May Revenue in CO
A larger handle typically yields more revenue. Nevertheless, this is not always the case. If bettors place successful wagers, the revenue can be significantly lower. CO suffered this blow during the month of May.
The gross gaming revenue dropped from $17.56 million in April to $15.15 in May. This was a 13.7% decline meaning the state made less tax revenue because bettors were successful on sportsbooks.
The total sports betting taxes were lower in April because of the revenue decline. In May, the state took home $635,641, which was disappointing considering the state earned $1.082 million in April.
CO is likely in for some down months in the dog days of summer. When the NBA and NHL Finals end, bettors will only be able to wager baseball. Although, once September begins, expect Colorado’s market to soar because of football season.
Football is the most wagered sport in the United States. Between college and NFL action, football is almost on every day of the week. This will help CO generate some significant figures in the fall.