Colorado Sports Betting Revenue Drops More Than 50% Month-Over-Month in February

The Colorado sports betting industry had a rough February thanks to a poor win rate and revenues that dropped more than half from January, and our best sports betting sites were no exception to the rule.

Despite year-over-year increases in sportsbook handle and revenues, Colorado sports betting underwhelmed in February, thanks in part to the fact that the NFL featured just the Super Bowl and lightly bet on the Pro Bowl.

According to the Colorado Department of Revenue, basketball in February, both NBA and college, kept the state's sportsbooks afloat during the 29-day reporting period. NBA bets represented 29% of all accepted wagers in the state. College hoops was the second-most bet-on sport, accounting for 4.7% of the overall state wagering action.

$536.9 million February handle

Colorado sports betting apps and retail outlets accepted a total of $536.9 million in sports wagers in February. While a 26.31% year-over-year increase from February 2023's $425.14 million, it is a 10% drop from nearly $596.7 million in January.

Year-to-date wagering activity for the year's first two months has set a new record. So far this year, Colorado sports betting sites have accepted $1.13 billion in wagers, beating the previous first two-month record total of $1.10 billion set in 2022. While February may have seen a dip compared to January, it's clear that residents are still taking advantage of Colorado sportsbook promos.

Of note, the Department of Revenue did see a 22% increase in Super Bowl handle year-over-year to $46.4 million.

Revenues dive thanks to ugly win rate

While February's month-over-month handle dip didn't make headlines, the drop in revenues for Colorado sportsbooks did. A poor 4.8% hold rate contributed to the state's underwhelming profits.

Gross sports betting revenues for Colorado sports betting sites were $25.8 million in February, a 14% year-over-year increase from February 2023's $22.6 million. The handle remember jumped 26.31% over that time.

Colorado sportsbook revenues dropped nearly $28 million - over 50% - month over month. January saw a record $53.5 million in revenues from a 9% hold rate.

Brick-and-mortar casinos in the Centennial State reported a loss. They paid out $3.645 million on a total $3.5 million February handle.

After deductions and promotional credits, Colorado sportsbooks' net revenues were reported to be $11.7 million. Of that, $1.3 million in taxes were collected for needy state and local coffers, 68.4% less than in January.

Through the first two months of 2024, however, $5.4 million in taxes have been collected from state providers, $1.6 million more than from the same period last year.

Football good for bettors, basketball good for books

Pro football ranked fourth in terms of bet-on sports in February, taking in just $18.7 million. Bettors hammered Colorado’s best sportsbooks, forcing them to pay out $5.5 million more than the total wagers it took in. By comparison, football contributed $10.2 million in profits for Colorado providers in January from an $86.1 million handle.

Basketball contributed nearly nine times the amount of bets that football did. Pro hoops made up $155.5 million of the state’s overall February handle, College basketball saw $25.2 million in accepted wagers, tennis was third with $20.6 million, and football rounded out the top four.