Colorado Ends 2023 With All-Time Handle Record

The Colorado legal sports betting industry is entering 2024 in good shape, fresh off two straight months of record sports wagering activity.

Colorado sports betting apps and the state's retail providers in December combined to smash the state's handle record that was set in November and took the sports wagering total over the milestone $700 million mark for the first time ever. Only New York, New Jersey, Illinois, Nevada, Ohio, Pennsylvania, and Arizona have accomplished that goal.

Unfortunately, according to the Colorado Department of Revenue report, Colorado sportsbooks revenues were unable to set a new high-water mark. NFL wagering alone provided a near $6.4 million loss for Colorado's best sportsbooks.

$716.4 million December handle

Colorado sports betting posted an impressive $716.4 million handle in December, obliterating the previous record of $608.5 million set in November. It is a staggering $104 million, or 17.7% month-over-month improvement. $716.4 million is also a 38.3% year-over-year improvement from the $518 million reported in December 2022.

Colorado’s best sports betting apps were responsible for the overwhelming majority of December's wagering activity. All but $4.5 million of the state’s December total handle came from Colorado sports betting sites.

For the full year, Colorado sports betting providers accepted $5.56 billion in bets. It is a 7.3% year-over-year increase from 2023. The Centennial State's mobile providers made up 99.2% of the state's total sports betting activity in 2023.

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Revenues dragged by NFL betting

Revenues for Colorado’s best sportsbooks failed to match the success of the state’s handle. As mentioned, huge losses on the NFL negatively affected the bottom line for Colorado's sports wagering providers. The hold rate for state providers as a result was just 5.7%, the worst December rate we have seen in the broad U.S. legal sports betting market.

Revenues for Colorado betting sites came in at slightly over $40.5 million in December. That figure is an actual month-over-month increase from November's Colorado sportsbook revenue total of nearly $28.6 million when providers held just 4.7%. Year-over-year revenues dropped just slightly from the $40.9 million reported in December 2022. The hold rate was 7.9% that month.

For the full year, Colorado sportsbook reported $391.1 million, which is an 11.4% improvement from full year 2022.

Tax contributions from Colorado providers in December came in at a record $3.7 million off of $25.1 million in adjusted gross revenues. It beats the $3.34 million in taxes paid by Centennial State providers in October.

The year-long tax contribution total from Colorado sportsbooks was $27.4 million, a $7.8 million spike from 2022.

Parlays lead the way

While pro football was the most bet on sport in Colorado in December, with just over $193 million in wagers and a 26.9% market share, it was parlays that carried the state’s scene in December. Football betting resulted in massive losses for state sports betting providers, but parlays did not.

Parlays saw nearly $202.2 million in wagers and a 28.5% market share. The bet type actually made money for the state’s sports wagering providers.

Basketball was third with just over $171.3 million in wagers, NCAA Football produced nearly $48.85 million in bets, NCAA Basketball saw $29.8 million, while “other” sports had an $18.7 million December handle, and hockey produced a slightly disappointing $15.25 million in wagers in Colorado.