People love winners, and champions are even better. In May, the championship postseason run of the Denver Nuggets drove the sports betting numbers in Colorado, with $122.7 million in bets placed online on the NBA in the state.
That total amounted to 32% of all wagers placed in Colorado for the month of May. The Nuggets won their first NBA title on June 12, following successful results in each round of the NBA playoffs in mid and late May.
The monthly Colorado sports betting proceeds report was released today. It details sports betting activity, both online and retail, listing the top ten sports wagered on in the state. The report also shows a cumulative gross gaming revenue for all sportsbooks, and the taxes paid to the state from such activity.
Colorado sportsbooks see dip in handle and GGR for May
Even with the success of the Nuggets, sportsbooks in Colorado saw a 7.8% decrease in total handle compared to April. Colorado sports bettors wagered $386,242,136 in May compared to $417,814,147 in April. There was also a decrease in revenue compared to April. Colorado sportsbooks reported $31.4 million in GGR for May. The Colorado sports betting revenue in April was $35.1 million.
The state’s sports betting operators had an 8.15% win percentage for May. That figure indicates the percentage of wagers the sportsbooks prevailed on. Typically that number ranges between 5-10%.
The top sports for wagers in the state for May 2023:
- Basketball … $122.7 million
- Baseball … $90.8m
- Tennis … $28.6m
- Soccer … $17.8m
- Ice Hockey … $14.4m
- Table Tennis … $9.2m
- Golf … $7.1m
- MMA … $2.5m
- Boxing … $926,956
- Football … $858,985
The niche sport of Table Tennis, wildly popular worldwide but still unfamiliar to many Americans, continues to draw well as a betting subject for Coloradans. It came in sixth, with three times the best placed on MMX and boxing combined.
In most states, the summer months result in a cooling off of betting activity, especially when no large event like a World Cup is being held. Colorado sports betting should spike again in the fall when the Denver Broncos and the NFL reappear. Football fans in the state also have reason to be excited about the Colorado Buffaloes for the first time in years, as new head coach Deion Sanders starts his first season.
Tax revenue from sports wagering continues to be a boon to Colorado
In May, the state of Colorado received $2.2 million in tax revenue from sports wagering both from retail and online sportsbooks. The bulk of that came from retail, which contributed $2,199,339 of that total.
Taxable online sports betting net revenue in Colorado has taken off in the last 9 months, reflecting the impact of a requirement from the start of 2023 for promo deductions to be capped at 2.5% of operators’ annual handle. Online NGR up 132% YTD versus 30% growth in online GGR. pic.twitter.com/G6MtGOURNn
— Daniel Stone (@DanielStoneGC) July 14, 2023
Most of the tax dollars from sports wagering in the state go to the Colorado Water Plan, which is funded to find solutions to the state’s water supply issues. Some portion also goes to a problem gambling program.