Colorado sports betting thrived in March after registering a handle of $505.6 million. It was the second time the handle had surpassed the $500 million territory. The Colorado Department of Revenue reported a handle that hit $392.3 million for April.
How Does April 2022’s Handle Compare to Last Year
The average sports betting has certainly taken a hit as bookmakers had to make the best of the Final Four and the National Championship Game. April’s overall sports betting handle was 22.4 percent less than March’s handle.
While the month-over-month figures were down, April 2022’s numbers were 60.5 percent higher when comparing the year-over-year numbers. As mobile sports betting becomes second nature in the Centennial State, Colorado remains a dominant market in the industry.
Bettors across the state have wagered nearly $7 billion since the market launched two years ago. It wasn’t easy for jurisdictions that host big markets as the global pandemic forced shutdowns and restrictions all around the world.
Colorado is also one of the states with a lower barrier of entry for sportsbook operators. This means more sportsbooks could conduct business in the state, giving bettors more options to choose from. Since PASPA was overturned, Colorado ranks sixth in the overall handle.
The gross gaming revenue for the month was $22.6 million, which noted a decrease of 20.1 percent. Approximately half of the overall revenue was taxable due to promotional credits, which totaled just over $11 million. Amounted to $11.5 million after adjusting for promotional credits, and the state was able to collect $1.2 million in taxes.
Colorado Sports Saved the Average Betting Volume for the Month
Other than the college basketball games, the Denver Nuggets and the Colorado Avalanche made the playoffs in the NBA and NHL. Even with a slightly better hold rate of 5.8 percent for the month, the results, for the most part, favored the players.
For the second start year, bookmakers took a loss on college sports betting. The NBA sports betting handle brought in s $146.3 million, but operators couldn’t capitalize much. Operators combined to generate $4.4 million in the NBA category as they fell under the three percent threshold.
Baseball came in second by just missing the $70 million handle. Hockey’s handle didn’t change as much as the handle stayed at $26 million. Bettors took advantage of the Colorado Avalanche’s success as bookmakers had a terrible win rate of 0.8 percent.
Parlays saved the house for the most part, as bookmakers could have had a horrible month. Operators accepted $73.4 million in parlays for the month and had a hold rate of 14.1 percent, which made up at least 40 percent of the gross revenue at $10.9 million.
Colorado Sports Betting Rule Change for Operators
Operators have thrived in Colorado for the most part as they had a tax rate of 10 percent. A ten percent tax rate is considered very low for industry standards. However, Colorado will be the first state to get rid of tax deductions on promotional credits.
This will lead to the bookmakers paying more taxes, but the 10 percent tax rate will still be in play. Virginia is another state that is looking to follow the rule of discarding tax deductions. Sportsbook in New York pays a 51 percent tax rate and doesn’t have the promotion deduction option, to begin with.
The Colorado Rockies and the Colorado Avalanche are the teams that will help the sportsbook operators going into May. However, it is safe to say, sportsbooks in Colorado and the rest of the industry are looking forward to the start of the NFL season.