Colorado sportsbooks generated nearly $2m in taxes for the state after a record revenue of almost $37m in November despite the month’s $475m handle falling short of October’s numbers, according to PlayColorado, which tracks the state’s regulated sports betting market.
Overall, Colorado’s sportsbooks took $475.4m in wagers in November, 3.3% less than October’s record of $491.5m, according to data released by the Colorado Division of Gaming.
Ian St Clair, the lead analyst for PlayColorado.com, commented: “Every market has grown significantly over the last few months, but few have performed better than Colorado since the football season began in September.
“November was a sort of litmus test for how sustainable the growth will be once football season ends because there were fewer games played than in October. A jump in basketball betting is an excellent sign for sportsbooks.”
November’s average betting volume matched the previous month at $15.85m per day, while year-over-year volume improved by 105.6% (November 2020: $231.2m). Online sportsbooks generated the most wagers with $469m, accounting for 89.6% of the Centennial State’s total handle.
The state’s gross revenue record was smashed by sportsbooks with $36.8m, 28.5% higher than the record set the previous month ($28.6m). Gross revenue was also up 100.4% YoY (November 2020: $18.4m).
Net sports betting proceeds increased to $19.3m (October: $9.8m), breaking January’s record of $11.7m, and yielding $1.98m in state taxes, the most ever in a single month in Colorado.
Eric Ramsey, an analyst for the PlayUSA.com network, which includes PlayColorado.com, stated: “Sportsbooks have been aiming to capitalize on the busiest period of the year to broaden their customer bases. The strategy has worked, as revenue for sportsbooks and for the state has grown even as promotional spending has remained near all-time highs.”
November’s results were achieved despite there being one less weekend of football than the previous month. Pro football generated $140.3m in wagers, down from October’s $171.2m, while college football produced $29.4m (October: $51.2m).
The in-form Denver Broncos helped mitigate the one fewer weekend of football, but it was pro basketball that ultimately helped keep the numbers up, as wagering on the sector almost doubled to $124.7m (October: $63.3m), followed by college basketball at $29m, ice hockey at $14m and soccer at $11.2m.
St Clair added: “Sportsbooks have made significant gains in customers this fall, and bettors have become increasingly comfortable with diverse forms of betting. Colorado’s bettors already have a diverse interest in sports beyond football. But operators have an opportunity over the next few months to leverage the growth made during football season into more forms of sports betting.”