After a bit of a dip in June, sports betting revenue in Colorado came back in a big way in July.
The latest report from the Colorado Division of Gaming shows a nearly 9% decrease in handle from June to July, but nearly $33 million in gross revenue and the taxes paid to the state increased by 30.4%. Digital wagering operators paid $2.4 million to the state, and bettors wagered $320.3 million.
In July, “Net Sports Betting Proceeds” (NSBP) was $25 million, up from $19 million in June. Online sportsbooks contributed almost $25 million, while retail sportsbooks added $175,009
Colorado’s Year Over Year Revenue is Strong
The total betting handle in July increased nearly 14% fiscal year to date, despite being down nearly 9% from June.
Baseball Betting Hits Home Run in Colorado in July
Baseball betting led all categories with $94.6 million wagered. The next biggest category was parlays, with $64 million wagered.
After baseball, the top sports for betting included:
- Basketball ($55.8 million)
- Tennis ($34.9 million)
- Soccer ($28.2 million)
- Table Tennis ($14 million).
Tennis likely saw an increase in bets due to Wimbledon, which took place in the first half of July. Similarly, soccer’s increase is probably due to the CONMEBOL Copa America and UEFA Euro tournaments, both held in early July.
Colorado sportsbooks launched in May 2020, during the COVID-19 pandemic and shutdowns, when there were few sports to bet on. Bettors turned to international table tennis, and the interest has remained.
People Prefer Parlays in Colorado
About 20% of the bets placed in July were parlays or multi-leg bets. This increase in parlays led to almost $3 million in additional profit for Colorado sportsbooks.
In July, people bet $64 million on parlays at Colorado sportsbooks, which was less than the $73 million bet in June. However, the revenue from these parlays went up from nearly $9 million in June to almost $12 million in July.
More Tax Money May Go To Water Projects
The bounce back and the popularity of sports betting is welcome news to lawmakers, especially if voters approve a related ballot issue come November.
When voters approved Proposition DD in 2019 to legalize sports betting, lawmakers set a $29 million limit on tax collections to gain bipartisan support. Any tax revenue above this cap is returned to the betting operations, like casinos. But lawmakers always thought that was an unreachable number. They were wrong. Four years after Colorado legalized sports betting, it has become more popular than lawmakers expected.
The 10% tax on betting revenue, which funds water projects, is bringing in more money than anticipated. Lawmakers now want voters to allow them to use the extra funds for water projects in the state instead of returning it to the casinos.
This year, the revenue is expected to exceed that cap by nearly $3 million, according to a fiscal analysis by the state. By the 2025-2026 fiscal year, it could be an extra $7 million. Governor Jared Polis signed House Bill 1436, so the question will be on the November ballot. The Colorado Gaming Association also supports the ballot measure.
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