Colorado Sportsbooks Report Record Handle, Underwhelming Revenue in November

The Colorado Division of Gaming November revenue report was released on Friday, and like many U.S. betting states, it revealed a new record for sports betting activity in the Centennial State.

Colorado sports betting apps and the state's retail providers combined to take in more than $600 million for the first time ever as the state became just the 10th in the broad and growing American sports wagering to top that milestone figure.

Colorado's November figures also took the state past the $15 billion lifetime handle mark, making the Centennial State just the sixth jurisdiction to reach that threshold.

Despite the record sports betting activity in November, revenues for Colorado's best sportsbooks failed to impress, due to the sixth-worst win rate for state sports betting providers.

Record November handle

Colorado bettors spent $608.5 million with state sportsbooks in November, easily a record, surpassing the previous mark of $573.7 million from January 2022. It was the ninth time that Colorado sportsbooks have surpassed $500 million in monthly bets during their 43 months of operation but the first time it has eclipsed $600 million.

The $608.5 million represents a 9.7% month-over-month increase from the $554.9 million reported for October and is 10.1% higher than the $552.6 million from November 2022.

November's sports betting totals took Colorado's year-to-date wagering figures to $4.8 billion, which is 3.9% better than through the first 11 months of 2022.

Revenues disappoint

Colorado sports betting sites and the state's retail providers were unable to capitalize on the state's record November sports betting handle. Profits for the best sports betting sites experienced a steep revenue drop-off both month-over-month and year-over-year, thanks mostly to the fact that bettors in the state more often than not got the better of the state's providers.

$28.6 million in gross November revenues were reported for Colorado sportsbooks. it is an eye-opening 39.1% month-over-month drop from October's $46.9 million and is 23.9% less than the $37.57 from November 2022.

The Colorado sportsbook hold rate is the main culprit for the steep drop in sportsbook profits. Colorado providers held just 4.7% in November, the sixth-worst win rate for state sportsbooks in 43 months of existence. The hold rate was 8.5% in October and 6.8% in November 2022.

Through the first 11 months of 2023, Colorado sportsbooks have enjoyed $351.4 million in gross revenues, a 13% increase from the profits seen through the first 11 months of 2022. Taxable revenue has climbed 45.3% over that time largely because of the change in promotional deduction rules for state sportsbooks.

Thanks to just $14 million in net sports betting profits, just under $1.5 million in taxes was paid toward needy state and local Colorado state tax coffers in November. It is a 55.43% month-over-month drop from October and about a $1 million year-over-year tax contribution drop from the same month in 2022.

The $1.5 million November tax haul in Colorado took year-to-date contributions to $23.7 million through 11 months, $6.7 million ahead of the pace set in 2022.