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Colorado Taking Steps Toward Elite Legal Sports Betting Status

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Colorado Taking Steps Toward Elite Legal Sports Betting Status
Photo by Clay Banks

Colorado has long been considered one of the legal sports betting markets to keep an eye on and after just three full months of operation, it has not disappointed. July, with a full menu of sports has revealed just how exciting Colorado is. With the NFL knocking on the door and new top-end providers eager to launch, Colorado’s legal sports betting arrow is pointing way up as we wind summer down.

The return of baseball and basketball provided Colorado quite a shot in the arm in July and helped produce a July handle that nearly eclipsed the numbers brought in by the legal sports betting platform in its first two months combined.

Dustin Gouker, lead analyst for PlayColorado, explained: “It only took a few days of basketball and baseball games in July to show the demand that is out there in Colorado for sports betting.”

The Numbers

Colorado’s legal sports betting scene is still only three months old – far from maturity. Yet the state was able to produce $59.2 million in wagers in July, up 55.2% from June when the platform took in a respectable for-the-time $38.1 million. Net revenues came in at $2.4 million in July, up 11.4% from June.

The tax revenue take for the state for July was $241,867. The lack of open, viable retail books led to a staggering 99% of Colorado’s handle and revenues coming from Colorado’s robust mobile wagering platform.

For comparison sake, Colorado’s legal sports betting industry, hindered tremendously by the COVID-19 crisis generated a total of $63.8 million in its first two months of operation, which led to $3.1 million in revenues.

An Exciting Future

Colorado’s sports betting scene elevated to fifth in the Nation in terms of state handles in July – a meteoric rise for such a young platform, behind only Nevada, New Jersey, Pennsylvania, and Indiana. It’s only going to get better with the Nuggets, the Avalanche, and the Rockies deep into their campaigns and the Broncos season ready to kick off. Estimates have the Colorado legal betting industry bringing in $1 billion annually upon maturity.

Dustin Gouker is on record saying, “In just three months, Colorado has established itself as the fifth-largest sports betting market in the US, and the number of sportsbook operators in the state is growing rapidly. And with a robust August schedule that includes playoff runs by the Denver Nuggets and Colorado Avalanche, the short-term outlook for the state is excellent.”

Competition came to Colorado in July as well. Circa Sports, the biggest DFS provider in the world, BetWildwood, Ameristar’s retail sportsbook, and William Hill’s retail sportsbook all opened last month to add to the haul the mobile side has been responsible for so far. PlayUp, PointsBet, and theScore Bet are getting ready to be added to the mobile fray as well.

However

Analysts in Colorado realize that legal sports betting success relies on the continuation of sports. COVID-19 has already shut down some college football programs, and threatens to have an effect on the all-important NFL season.

Societal unrest and protest in the US have also forced game cancelations in the NBA, WNBA, MLB, and the NHL and could lead to the ultimate demise of the whole NBA season. “As robust as August looks right now, though, the future remains tenuous.” Dustin Gouker lamented, even before the players took a stand.

He went on to say, “College football will likely not be played this fall in Colorado, though perhaps elsewhere in the US. And the NFL is still working out its plans. So, while the news is good, sports betting is still at the mercy of the pandemic.”

Overall

The sports betting scene in Colorado seems healthy and the state is poised to challenge the industry Heavyweights. Competition in the industry is robust and the sports betting menu is full, setting the state up for success as we head into a busy fall.

It didn’t take long for Colorado to become a force but its success is fully dependent on the COVID-19 crisis settling down just a bit. If MLB, the NBA, NHL, and NFL are allowed to complete their seasons, the sky is the limit for one of the newest states to the legal betting fold.