Colorado sports betting market takes big hit in February

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Colorado sports betting operators have recorded a dip in sports betting handle and revenue during February as the NFL season came to a close.

Data from the Colorado Division of Gaming revealed that operators took $425.9m in handle during February 2023, down 22.3% from January, which could largely be driven by the winding down of the football campaign. 

It also represented a 3.5% decline year-over-year, perhaps as Super Bowl marketing spend may have decreased in a market that has now been open for over a year. 

Breaking down the wagering by location, $3.5m was wagered at a retail sportsbook property, whilst the overwhelming majority of handle, $421.6m, came from online sports betting apps or sites. 

Whilst Colorado sports betting operators took less in handle, they also took much less in revenue, with the hold rate at a low 5.3%, as players won $402.5m. For comparison, in January, the hold rate was 6.5%, while February 2022 also saw a low hold rate of 4.5%. 

The Colorado Division of Gaming does not break down handle by operator, but rather by sport instead. Pro Basketball was by far the most popular sport to bet on during February, with $155.6m wagered on fixtures during the month. 

NCAA Basketball was the next most popular sport, with bettors gearing up for March Madness which took place last month. Bettors wagered $68.1m on college basketball. 

Here is a list of some of the other most bet on sports: 

Pro football – $27.5m

Tennis – $25.4m

Hockey $21.3

Soccer – $19.6m

With the hold rate down at 5.3%, operators took total GGR of $22.6m during Feb 2023, down from $35.4m in Jan, but up from the $19.6m made in Feb 2022.

Colorado’s sports betting tax rate is at 10% of net sports betting revenue, meaning that operators paid out $1.2m to the state, down 51.4% from January’s figure. However, it did mark a 299.5% increase YoY.