Colorado has passed a significant marker in sports betting by topping $6 billion in total handle since the launch of the industry in May 2020.
In February 2022, the state recorded a handle of $440.5 million for sports betting, and in the last 12 months dating back to February 2021, sports betting in Colorado has grown by more than 60%. Online sports betting continues to be wildly popular in Colorado, with 98.7% of wagers coming via online sportsbooks in February 2022.
Colorado sportsbooks reported a Total Win Percentage of 4.45% and paid out more than $420 million to bettors. The Colorado Department of Revenue (Division of Gaming) report shows that Gross Gaming Revenue was $19.6 million for February. Sportsbooks posted a net negative in betting proceeds in excess of $1 million after bonuses and special offers were removed from GGR.
The most popular sport for betting was basketball (college and NBA) with more than 50% of all wagers placed. Next was football at 7%, and professional hockey at 5%. Parlay or combo bets accounted for 17.8% of all sports wagers in Colorado for the month of February.
More Than $16 Million Has Been Paid In Taxes Since Legalization
Fueled by the NFL playoffs and college football bowl season, Colorado in January 2022 set a national record for total handle with $573.7 million in sports betting.
While betting activity lessened in February (dropping by 23% from the previous month), Colorado continues to be one of the most successful states for sports betting, even with only a handful of retail sportsbooks in the Rocky Mountain State. Sports-crazed fans in Colorado flock to online sportsbooks to place their wagers.
In February 2021, Colorado sportsbooks combined for a total handle of $266.5 million. Comparing that to the $440.5 million for February 2022 indicates a whopping year-over-year increase of 65.3%.
Since the state debuted its sports betting market in 2020, sportsbooks have paid 10 percent of their adjusted gross revenue to the state in tax. That’s resulted in more than $16 million in taxes paid to the Department of Revenue, with much of that targeted for a “hold harmless fund” that compensates regions for lost tax revenue from casino gaming or horse racing as a result of Colorado’s legalization of sports betting. The remainder of the tax revenue goes toward gambling addiction recovery and education.
April will bring the start of the Major League Baseball season, and it also included the last weekend of March Madness. Both the NBA and NHL also make their way toward their playoff seasons all of which should make April a strong month for sports wagering in Colorado.