Second-Best Hold Rate Ever Aids Colorado Sportsbooks in May

There was mostly good news for our best sports betting sites in May 2024. Revenues and overall monthly sports betting activity ticked up year-over-year, as did month-over-month revenue figures. The only major measuring metric that declined was the handle compared to April.

The Colorado Department of Revenue May report released Thursday showed the Colorado sports betting market benefitted from the second-highest win rate ever for the state. The 10.1% hold boosted the May revenue figures and checked in right behind September 2022’s 11.4% win rate.

A 22.5% hold rate on parlay markets for Colorado sports betting apps and retail sites provided the biggest boost to the state’s bottom line and was the highest for multi-leg wagers in the last 20 months of operation.

$447.6 million May handle

Sports bettors in the Centennial State spent a total of $447.6 million in May, placing Colorado as the seventh-highest-grossing sports betting state in May. Many of the heavy-hitter jurisdictions have yet to report their monthly figures. Residents continue to take advantage of Colorado sportsbook promos.

It represents a 16.2% year-over-year increase from the $385.2 million reported in May 2023 but is 12.2% less than the April report.

May’s figures brought the year-to-date handle total in Colorado to $2.68 billion, which is a welcome 18.2% year-over-year increase from the first five months of 2023.

Revenues a pleasant surprise

Colorado sportsbooks reported almost $45 million in gross sports betting revenue in May, thanks to a 10.1% hold, the second-highest ever for the state. Our best sportsbooks did well for the first month of the spring/summer slowdown.

It is a surprising 40.5% month-over-month improvement from the $32 million reported in April when the hold rate was just 6.3%. It is an even bigger year-over-year revenue jump from the $31.4 million reported in May 2023.

Adjusted gross revenue for Colorado sportsbooks came in at $33.5 million in May, a 74% month-over-month improvement and a 52% year-over-year spike in that measuring metric. 

So far, for the year, Colorado’s best sportsbooks have enjoyed $134.6 million in adjusted gross revenue, a 14.3% jump from January to the end of May of last year.

AGR allowed $3.2 million in taxes to be paid to Colorado state and local tax coffers. It brought the tax contribution year-to-date total to $13.4 million, a $1.7 million improvement from the pace set through the first five months of 2023.

Parlay wagering does the heavy lifting 

The Colorado Department of Revenue does not report on individual operator handles or revenues, but its report does break down wagering activity from various markets.

In May, parlays were responsible for most of the Colorado sportsbook revenues, totaling $20.9 million from a $93.1 million May handle on multi-leg bets. The high revenue total is due to a 22.5% win rate on parlay wagers.

Basketball also contributed to the state’s bottom line in May. Hoops wagering was up just over 54% year-over-year despite the Denver Nuggets’ early exit from the NBA playoffs. Colorado providers saw $147.5 million in basketball wagers, producing $7.9 million in revenues.

Hockey bets made up $24.2 million of the state’s overall May handle and generated $3.4 million in winnings for Colorado sportsbooks, almost tripling last year’s $1.14 million May hockey revenues. This is despite another early exit from a Centennial State team, the Colorado Avalanche. 

Baseball was responsible for $92.3 million in wagers in May and generated $3.8 million in operator winnings, and $19.6 million of Colorado’s May handle came from “other” sports, which consists of golf, tennis, combat sports, and motorsports. It is an almost $3 million month-over-month improvement in that category. It produced $1.7 million in revenues in May.

Table Tennis betting in Colorado continued to raise eyebrows, with $13.9 million in May bets and nearly $1.2 million in revenues. With May’s totals added in, Colorado sportsbooks have now accepted more than $400 million on table tennis since launch.