PlayColorado.com has estimated that the sports betting industry of the state will in the near future produce billions of dollars in bets annually and hundreds of millions in operator revenue.
Regulators are planning to introduce online and retail sports betting in Colorado on May 1 which will see it become the 18th state to have some form of legal sports betting, given the raft of delayed or cancelled sporting events.
Despite this imminent barrier, according to PlayColorado’s estimates, the Centennial State has been estimated to produce as much as $6bn in bets annually, $400 m in gross operator revenues and $40mn in tax revenues.
Dustin Gouker, chief analyst for PlayColorado.com said: “With a significant base of existing land-based casinos, a regulatory framework that will be attractive to operators, and one of the largest metropolitan markets in the country to draw from, Colorado is well-positioned to capitalise on sports betting.
“But assuming the industry does launch on May 1, it will be doing so in unprecedented circumstances with almost no sports to wager on.
“There are some advantages to a forced soft opening, but it also means that it will be some time before we learn with confidence just how Colorado’s bettors will respond to legal sports betting.”
Colorado regulators have opted for a later start date to make sure their regulatory process is right. A net income tax of ten percent is equivalent to some of the most popular sports betting jurisdictions, such as New Jersey and Nevada, the largest such company in the nation at present.
Colorado agreed not to have a maximum bet limit, a decision which was left to the operators by the regulators.
Gouker also added: “Colorado legislators and regulators have made many smart, measured decisions based on input from casinos, operators, and bettors, and that has led to the adoption of an excellent collection of rules and restrictions.
“They have also had the undeniable benefit of seeing what has worked in other states. Colorado’s methodical approach might have been frustrating to bettors by slowing the launch, but there is plenty to be encouraged about. Sports betting operators have inked partnerships and regulators are listening to stakeholders. That will serve Colorado well.”