Colorado Sports Betting Hits $600M in November Despite Revenue Dip

The total handle impressively climbed to $608.5 million. Despite this surge, the sports betting operators faced a downturn in revenue both monthly and yearly.

Revenue Trends: A Contrast to the Rising Handle

While the handle experienced growth, November’s sports betting revenue told a different story. The revenue was recorded at $28.5 million, a stark 60.7% decrease from October’s figures. Additionally, when compared to the same month last year, the revenue saw a 24.2% drop from the $37.6 million recorded in November 2022.

One notable factor in November was the higher-than-usual winnings for bettors, totaling $579.9 million. This left a relatively modest hold percentage for the operators at 4.7%, significantly lower than the 8.46% in October and a 30.9% decrease year-over-year. Despite these figures, the consistent growth in the total handle indicates a thriving sports betting market in Colorado.

Dominance of Online Wagering in Colorado’s Betting Landscape

Colorado’s sports betting framework encompasses both online and retail sportsbooks. However, the lion’s share of betting takes place online, with over 99% of November’s total handle coming from mobile sportsbooks. Online sports wagering generated a substantial $28.2 million in revenue, accounting for 98.7% of the month’s total.

In contrast, retail sportsbooks in Colorado’s gambling towns contributed $5.6 million in wagers, leading to $5.2 million in winnings for players. This resulted in a hold percentage of 6.64% for the retail sector, translating to $369,619 in revenue. Despite the dominance of online betting, retail sportsbooks did witness a 21.4% month-over-month increase in handle.

Our Comment on the Article

The November sports betting landscape in Colorado presents a complex picture. The record-high betting handle underscores the growing popularity and engagement in sports betting within the state. However, the dip in revenue and operator hold percentage highlights the volatile nature of the betting industry, where player winnings can significantly impact operator revenues.

The dominance of online wagering in the state’s sports betting economy is a testament to the convenience and accessibility of mobile betting platforms. As Colorado’s sports betting market continues to evolve, it will be interesting to see how operators adapt to these fluctuations and how the balance between online and retail betting develops.