PlayColorado.com has predicted that the state’s sports betting industry will generate billions of dollars in bets annually and hundreds of millions in operator revenue in the near future.
Regulators are preparing for the May 1 launch of online and retail sports betting in Colorado which will see it become the 18th state to have some form of legal sports betting, despite the raft of sporting events postponed or cancelled.
In spite of this immediate hurdle, the Centennial State has been estimated to annually generate as much as $6bn in bets, $400m in gross operator revenues and $40mn in tax revenue, according to PlayColorado projections.
“With a significant base of existing land-based casinos, a regulatory framework that will be attractive to operators, and one of the largest metropolitan markets in the country to draw from, Colorado is well-positioned to capitalise on sports betting,” said Dustin Gouker, chief analyst for PlayColorado.com. “But assuming the industry does launch on May 1, it will be doing so in unprecedented circumstances with almost no sports to wager on.
“There are some advantages to a forced soft opening, but it also means that it will be some time before we learn with confidence just how Colorado’s bettors will respond to legal sports betting.”
Colorado regulators opted for a later start date to ensure it gets its regulatory framework right. Its ten per cent tax on net revenue is comparable to some of the most successful sports betting markets such as New Jersey and Nevada, currently the nation’s largest such entities.
Colorado has decided not to include a maximum bet limit, a decision the regulators left with the operators.
Gouker added: “Colorado legislators and regulators have made many smart, measured decisions based on input from casinos, operators, and bettors, and that has led to the adoption of an excellent collection of rules and restrictions.
“They have also had the undeniable benefit of seeing what has worked in other states. Colorado’s methodical approach might have been frustrating to bettors by slowing the launch, but there is plenty to be encouraged about. Sports betting operators have inked partnerships and regulators are listening to stakeholders. That will serve Colorado well.”