Colorado’s sports betting market has recorded a significant increase in wagers in August, with the state generating $128.6 million following a jam-packed schedule of NBA and NHL fixtures.
According to PlayColorado analysts, the success of the state’s sports betting markets should be commended since it was only officially launched in May during the global health pandemic.
“Considering the obstacles Colorado’s market has had to face since it launched in May, the results so far have surpassed the expectations of all but the most optimistic,” commented Dustin Gouker, lead analyst for the PlayColorado.com. “Colorado is already in a small group of major U.S. sports betting markets, and it has reached that level long before the market has matured.”
Highlighting the growth of Colorado’s market, official data revealed that August’s wagers have increased by 117% from July’s $59.2 million figure.
Wagers over August generated $1.9 million in betting proceeds, which is down 22% from $2.4 million in July. However, despite net proceeds dropping there was an overall rise in gross revenue to $7.5 million from $5.2 million in July, which according to PlayColorado, is a result of increased marketing.
August’s wagers also significantly benefited the state of Colorado with $189,462 being produced in state taxes. Over the state’s first three months of legalized betting, sportsbooks have generated $122.9 million in bets.
“Colorado started as a relatively open market for sportsbook operators and a well-conceived regulatory framework have made the state especially appealing,” Gouker added. “With multiple bookmakers who have never operated in the U.S. before, Colorado is beginning to look like no other market in the U.S.”
Figures highlighted that basketball was the sportsbooks’ main source of bets, generating $38 million in wagers as sports fans eagerly anticipated Denver Nuggets’ matches. Baseball also garnered $22.8 million in bets whilst hockey drew $13.6 million in wagers.
Analysts also highlighted that while August figures are impressive, September has the potential to exceed the revenues garnered already, particularly with Denver Nuggets in the Western Conference Finals and the NFL’s Denver Broncos season commencing.
Jessica Welman, analyst for PlayColorado.com, emphasised: “As impressive as August was, September will almost certainly be even better with the Nuggets and Broncos in play.
“With table tennis as the state’s top draw in the first few months, it was impossible to get a reliable read on Colorado’s market. We now know it’s a market that responds well to its home teams. After September, though, we will find out how much interest in sports betting is driven locally as the Nuggets season wanes and if the Broncos continue to struggle.”
To conclude, Colorado’s betting sector is hot on the heels of America’s fourth largest market, Indiana, with the state generating $169 million in bets in August. This is a monumental feat considering that Indiana has a more mature market, a larger population, and is boosted by large markets, such as Chicago, Cincinnati, and Louisville just across its borders.