Colorado Reports Record Sports Betting Handle in November

There was great news and some not-so-great news out of the Colorado Division of Gaming November report released on Monday.

The state was able to set a new high-water mark in terms of overall monthly wagering activity, but experienced a major month-over-month revenue drop because of an awful sports betting hold rate.

Colorado sports betting apps and the state's retail sports betting providers are on track to have their best year ever in terms of handle, despite November's underwhelming revenue totals. It looks as though year-long 2023 revenues will set a new record, barring any catastrophe in December.

$608.5 million December handle

Colorado sports betting users spent a whopping $608.5 million with the state's sportsbooks in November, easily topping the previous record of $554.6 million set in October. That number represents a 9.7% month-over-month increase from October's totals and a nearly $56 million, or 10.1% year-over-year improvement from November 2022.

Colorado sports betting sites were responsible for the overwhelming majority of the overall legal sports betting activity in the Centennial State in November. A total of 99% or $602.9 million of the overall state's handle came from Colorado’s best sports betting apps. Retail contributed $5.6 million in total wagers.

Through the first 11 months of 2023, a total of $4.8 billion was spent with Colorado's sportsbooks. That is a 3.9% year-over-year increase from the same period during 2022.

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Revenues drop 39.1%

Unfortunately for Colorado's best sportsbooks, revenue totals didn't follow the handle record. An ugly 4.7% hold rate, which is the sixth lowest ever for Centennial State sports betting providers, is responsible for a 39.1% month-over-month revenue drop off.

The national average hold rate for sportsbooks is about 7%. In Colorado, the average is slightly higher since the launch of their legal sports wagering platform. October's hold rate was 8.4%.

Just $25.8 million in gross gaming revenues and $13.9 million in net revenues resulted from Colorado's November report. Along with a 39.1% month-over-month drop, it is a 23.9% dip from the Colorado sportsbook profits from November 2022.

Still, year-over-year, taxable revenues have jumped 45.3% for the first 11 months of the year, mostly due to changes in promotional deductions in the Centennial State. A total of $237 million in taxable revenues were reported by Colorado's betting sites in the first 11 months of 2023.

Just $1.5 million in tax contributions were made by Colorado state providers in November, a 55% month-over-month decrease and a drop of 42.3% year-over-year. It took the 2023 year-to-date tax contribution total to $23.7 million, far ahead of the $6.7 million for the first 11 months of 2023, thanks again to the changes in the promotional deductions policies in the state.

Football betting carries the weight

Colorado sports betting providers benefitted hugely from football during the November reporting period, although NFL betting slipped from about 33.4% of the total handle to about 25%. The NFL alone was responsible for $151.2 million in wagers in November. College football contributed another $52.1 million toward the state's overall sports wagering handle.

Basketball held its own in November as well, increasing its percentage from 11.4% of the state's overall handle to 23.6%. The NBA was responsible for $143.6 million in November wagers, while NCAA hoops produced $37.8 million. 

Tennis was third with $22.7 million in November wagers, hockey was fourth with $19.7 million, and soccer rounded out the top-five most popular sports to bet on in Colorado in November with $14.7 million.