Colorado Continues to Record Sports Betting Decline in July

The Colorado Division of Gaming July revenue report was released on Tuesday. It revealed a predictable summer sports betting slowdown but an incredible jump in sportsbook revenues.

Colorado sports betting fell victim to bettors in the state wagering on and winning on NBA action in June, alongside their beloved Denver Nuggets who took home this year's NBA crown.

Typically, July and August have represented the low point for U.S. legal sports betting jurisdictions, including Colorado, but a number of states have already reported a surprising uptick in wagering activity in August. Hopes are that Colorado follows a similar trend, but we will have to wait a month to find out.

Handle dips under $300 million

For the first time in 12 months, the Colorado legal sports betting scene produced less than $300 million in bets in July. Colorado's best sportsbooks took in $281.1 million in wagers in July which is a 9.5% decline from the $310.7 million wagered in the state in June.

Year-over-year, July's numbers actually increased. The $281.1 million is 8.9% higher than the $258.4 million wagered in the state in July 2022.

Colorado’s best sports betting apps were responsible for the bulk of the betting action. The state's mobile scene made up $279.4 million of the overall handle while retail providers took in just $1.7 million in July.

July's handle helped Colorado's sports betting industry become just the sixth state since the 2018 Supreme Court decision to overturn its blanket betting to surpass a $13 billion lifetime handle.

Revenues a completely different story

Colorado betting sites were in need of a bounce back after the Nuggets helped bettors get the better of sportsbooks in June. They got one.

Gross gaming revenues for Colorado's sports betting sector came in at $25.0 million in July, which is an astounding 171.1% increase from the disappointing $9.2 million in profits reported in June. July 2023's profits are also a 20.2% year-over-year increase from the $20.8 million in profits from July 2022.

Colorado sports betting apps were responsible for $24.8 million of the overall $25 million in revenues reported in July. Retail providers generated just $144,166 in revenues.

Colorado sports betting simply had more success against bettors in July. The hold rate for Colorado's sports betting providers was 8.9% in July, a huge jump from the miserable 3% in June. Hence, the massive jump in profits.

Tax contributions benefitted from the spike in sportsbook revenues and hold rate. Colorado state and local coffers benefitted to the tune of nearly $1.8 million in July, more than 4 times the $441,951 from June. 

Year-to-date numbers

Colorado sports betting providers took in $2.86 billion through the first seven months of 2023, which represents a slight 0.6% increase from the same period last year. 

However, thanks to an average 1.5% jump in overall hold rate, revenues for the state's providers grew an impressive 28.2% for the period spanning January to July. In 2023, Centennial State sportsbooks managed to hold 7.2% from January to July, despite an awful 3% in June.

So far in 2023, Colorado sports betting providers have paid about $14 million in taxes, which is nearly double the $7.4 million collected through the first seven months of 2023.

Take advantage of Colorado sportsbook promos in the coming weeks.