As regulated sports betting settles into its more permanent phase, gambling operators are being to experience the highs and lows of an established market. Take the case of Colorado’s February sports betting handle and revenue for example.
Colorado’s regulated operators took in $440,508,421 worth of wagers in February, generating $19.6 million in revenue. While that sounds good, it does represent the lowest numbers Colorado operators have seen since August 2021. From that total, the State of Colorado took home $314,731 in taxes, which marks a 78 percent drop from January’s tax bill.
So what’s behind the February dip? In a word, football. February is a uniquely dry month for US sports betting thanks to the presence of only one game, the Super Bowl. While Super Bowl wagering is always big business, it’s not enough to offset a league’s worth of games and the results are evident. Throw in a slight slowdown before the NCAA Basketball Tournament, and it’s clear to see why February can be something of a bust.
But something of a bust is a relative term for US gaming operators. After all, that $440,508,421 worth of wagers represents a 65 percent leap from February 2021’s handle. And that gross gaming revenue (GGR) is up 88.5 percent from February 2021’s anemic $10.4 million in GGR.
Sports betting markets are cyclical and the US market is proving that it’s not immune to ups and downs. But there’s always more sports and that’s what PlayUSA analyst Eric Ramsey is predicting for Colorado. “The biggest concern for sportsbooks was a big loss in the inventory of baseball games,” said Eric Ramsey, an analyst for the PlayUSA.com network, which includes PlayColorado.
“But with the lockout now over and the primary bet generator during the summer months playing a full schedule, Colorado’s operators can look forward to the first truly normal sports year since the state launched sports betting in May 2020,” he said.