Table of Contents
According to PlayColorado, Colorado sportsbooks reported a dip in sports betting volume in April, a dip that was caused by seasonal factors that are projected to reduce wagering activities until football season.
However, as the state celebrates its first year of sports betting, a slight dip should not dampen the optimism for a state that is obviously primed for significant development in year two, according to the report.
In April, Colorado’s online and retail sportsbooks pulled in $244.5 million, down 18.8 percent from March’s $300.1 million in wagers. The official tally for the state is marginally lower than the unaudited numbers released earlier this month.
In April, bettors placed $8.1 million bets per day, down from $9.7 million in March. These wagers resulted in $17.6 million in total gaming revenue, down from $20.4 million in March. Net sports betting earnings were reduced to $10.5 million due to promotional credits totaling $6.4 million, resulting in $1.1 million in tax revenue.
NFL or the NCAA Tournament
Ian St Clair, analyst for PlayColorado.com said: “In US sports betting, there isn’t any real substitute for the popularity of the NFL or the NCAA Tournament.
“The circumstances now are radically different from last year’s pandemic-plagued launch, and there is reason to believe that the state will be back to full speed once football returns.”
Colorado sportsbooks generated $2.3 billion in wagers, $147.4 million in gross gaming income, $61.5 million in net betting earnings, and $6.6 million in state taxes from May 1, 2020, to April 30, 2021.
First year success
Jessica Welman, analyst for PlayColorado said: “The outlying metric continues to be the state’s take, which may yet need to be adjusted to ensure that the industry is working for every stakeholder.
“Still, considering the circumstances of its launch, the first year of sports betting in Colorado was a success.”
With the reduced sports schedule, a decline in wagering was to be expected. Every state that allows legal sports betting has seen a drop in April wagering compared to the previous month. Indiana (-25.4 percent), Iowa (-26.7 percent), and Michigan (-30.5 percent) all had a more significant month-over-month fall than Colorado among the largest sports betting markets in the US that have already published April statistics.
New Jersey (-13 percent), Tennessee (-13.6 percent), and Pennsylvania (-14.4 percent), on the other hand, did slightly better.
In April, the NBA remained the leading draw, mirroring activity in most markets. Betting totalled $84.3 million in April, down from $106.9 million in March. Baseball betting came in second with $48.3 million in the first month of the season, a sum undoubtedly influenced by the Colorado Rockies’ troubles. Hockey betting climbed to third place with $10.6 million, while table tennis ($9 million) maintained its unusual appeal.
“Colorado’s unique mix of betting interests does help flatten some of the seasonal swings that some other major markets experience,” St Clair added. “If the Nuggets and Avalanche can make deep playoff runs and the Olympics pique interest, Colorado stands a good chance of avoiding the worst of the typical summer swoon.”